Future growth expectations in sales/revenue/volumes?

Coforge expects very strong growth in FY2026, driven by a record signed order book 47.7% higher than last year. Growth momentum of 30%+ seen in FY2025 is expected to be maintained in FY2026, supported by large deal wins including the Sabre contract. The company's pipeline of large deals remains healthy, with consistent year-on-year increase in both number and median size of deals. Growth is expected to be balanced across geographies, industry verticals, and service lines. The ramp-up of large deals like Sabre will continue over the next few quarters, contributing significantly to volumes. Cofo

Future growth expectations in earnings/operating earnings/profits/EPS?

Coforge expects very strong growth in FY2026, driven by a record signed order book 47.7% higher than the previous year. Organic growth momentum of mid-teen percentage is anticipated to continue, supported by acquisitions like the Sabre deal and others. EBIT margins are expected to improve significantly: Q4 FY2025 EBIT exit was 13.2%, with guidance targeting approximately 14% EBIT by FY2027. Reported EBITDA margin target is 18% by FY2027, up from 16.6% in FY2025. EBIT margin expansion largely to occur in FY2026, with structural changes and scale leverage key drivers. Operating cash flow (OCF) i

Current/ Expected Orderbook/ Pending Orders?

Total order intake in Q4 was $2,136 million, marking an exceptional quarter. Fiscal year 2025 recorded the highest ever annual order intake of $3.5 billion, up 75.1% year-on-year. The executable order book, representing locked orders for the next 12 months, stands at a record $1.5 billion. This reflects a 47.7% growth in the executable order book compared to the same time last year. The strong order book supports a confident outlook for growth in fiscal year 2026.

Any current/future new fundraising through debt or equity?

There is no mention of any current or planned fundraising through debt or equity in the provided transcript. The company has improved its net cash position from a net debt of $9.8 million at the end of FY2024 to net cash of $43.3 million at the end of FY2025. The focus appears to be on utilizing cash flows and managing working capital to support growth. No indications were given about raising new capital through equity or debt in near future. The company continues to pay dividends, suggesting cash flow is sufficient to support such payouts without new fundraising.

Any current/future capex/capital investment/strategic investment?

The company made acquisitions during the year: a data and cloud asset in the US generating $6 million quarterly revenue and a ServiceNow asset in Australia generating $2 million quarterly revenue. Revenues from these acquisitions will largely offset the sale of the AdvantageGo business. There is a focus on investing in delivery operations and capability build, particularly around AI and GenAI solutions, with over 200 real-world AI solutions developed and deployed. Investments are also evident in hiring new leadership (e.g., in Australia) and ramping up headcount to support large deal ram

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Coforge LtdQ1 FY25IT - Software

Coforge Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,446P/E: 33.5Market Cap: ₹55.1K CrSector: IT - Software

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Coforge expects very strong growth in FY2026, driven by a record signed order book 47.7% higher than last year.
→Growth momentum of 30%+ seen in FY2025 is expected to be maintained in FY2026, supported by large deal wins including the Sabre contract.
→The company's pipeline of large deals remains healthy, with consistent year-on-year increase in both number and median size of deals.
→Growth is expected to be balanced across geographies, industry verticals, and service lines.
→The ramp-up of large deals like Sabre will continue over the next few quarters, contributing significantly to volumes.
→Coforge targets reaching $2 billion in revenue by FY2027, aiming to potentially achieve this milestone earlier.
→Sustained growth is supported by engineering and platform plays, with an expanding headcount and skills base.
→Focus remains on managed services, transformation, legacy modernization, and large deal-based growth model.

Margin guidance

Category 2

→Coforge expects very strong growth in FY2026, driven by a record signed order book 47.7% higher than the previous year.
→Organic growth momentum of mid-teen percentage is anticipated to continue, supported by acquisitions like the Sabre deal and others.
→EBIT margins are expected to improve significantly: Q4 FY2025 EBIT exit was 13.2%, with guidance targeting approximately 14% EBIT by FY2027.
→Reported EBITDA margin target is 18% by FY2027, up from 16.6% in FY2025.
→EBIT margin expansion largely to occur in FY2026, with structural changes and scale leverage key drivers.
→Operating cash flow (OCF) is expected to sustain at 67-70% of EBITDA, with typical H2 seasonality.
→Large deal pipeline and multiple verticals support sustained profitability and EPS growth over medium term.

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Fundraise plans

→There is no mention of any current or planned fundraising through debt or equity in the provided transcript.
→The company has improved its net cash position from a net debt of $9.8 million at the end of FY2024 to net cash of $43.3 million at the end of FY2025.
→The focus appears to be on utilizing cash flows and managing working capital to support growth.
→No indications were given about raising new capital through equity or debt in near future.
→The company continues to pay dividends, suggesting cash flow is sufficient to support such payouts without new fundraising.

Order book

Yes

→Total order intake in Q4 was $2,136 million, marking an exceptional quarter.
→Fiscal year 2025 recorded the highest ever annual order intake of $3.5 billion, up 75.1% year-on-year.
→The executable order book, representing locked orders for the next 12 months, stands at a record $1.5 billion.
→This reflects a 47.7% growth in the executable order book compared to the same time last year.
→The strong order book supports a confident outlook for growth in fiscal year 2026.

Capex plans

Yes

→The company made acquisitions during the year: a data and cloud asset in the US generating $6 million quarterly revenue and a ServiceNow asset in Australia generating $2 million quarterly revenue.
→Revenues from these acquisitions will largely offset the sale of the AdvantageGo business.
→There is a focus on investing in delivery operations and capability build, particularly around AI and GenAI solutions, with over 200 real-world AI solutions developed and deployed.
→Investments are also evident in hiring new leadership (e.g., in Australia) and ramping up headcount to support large deal ramp-ups.
→No explicit mention of upcoming large-scale capital expenditure or strategic investments beyond these points was noted.

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