Coforge's Q2 FY 2025-26 Quarterly Results

Result Summary

• Coforge Ltd reported a 8.6% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 29.0%.
• Its expenses for the quarter were up by 4.5% QoQ and 23.6% YoY.
• The net profit increased 19.4% QoQ and increased 82.1% YoY.
• The earnings per share (EPS) of Coforge Ltd stood at 11.07 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Coforge Ltd is a global IT services company known for offering a wide array of services including digital process automation, cloud services, and enterprise services. The company primarily operates within the Information Technology industry, providing solutions that cater to sectors such as insurance, banking, and travel. Coforge has been recognized for its significant contributions in digital transformation services and strategic IT consulting. In recent years, the company has focused on expanding its digital services portfolio, enhancing its capabilities in emerging technologies, and broadening its geographical footprint through strategic partnerships and acquisitions.

Revenue

In Q2FY26, Coforge Ltd reported total income of ₹4,024.20 crores, marking an 8.6% increase from the previous quarter (Q1FY26) where the total income was ₹3,707.20 crores. Compared to the same quarter in the previous year (Q2FY25), there was a 29.0% increase in total income, which was ₹3,118.60 crores. This growth reflects a robust performance in revenue generation over both quarterly and yearly periods. The increase in total income indicates a positive trajectory in the company's revenue streams, which could be attributed to its expanded service offerings and increased client engagements.

Profitability

Coforge Ltd's profitability in Q2FY26 showed significant improvement, with a Profit Before Tax (PBT) of ₹558.20 crores, representing a 52.8% increase from ₹365.40 crores in Q1FY26. Year-over-year, the PBT surged by 78.1% from ₹313.50 crores in Q2FY25. The Profit After Tax (PAT) for Q2FY26 was ₹425.40 crores, an increase of 19.4% from the previous quarter's ₹356.40 crores, and an 82.1% rise from ₹233.60 crores in Q2FY25. The tax expense for Q2FY26 was ₹132.80 crores, which increased by 67.7% QoQ and 66.2% YoY. This significant growth in profitability metrics underscores the company's effective cost management and operational efficiency, despite the rise in tax expenses.

Operating Metrics

Coforge Ltd's operating metrics for Q2FY26 reveal a nuanced performance. Total expenses for the quarter were ₹3,466.00 crores, reflecting a 4.5% increase from ₹3,317.00 crores in Q1FY26, and a 23.6% rise from ₹2,805.10 crores in Q2FY25. The company's Earnings Per Share (EPS) in Q2FY26 was ₹11.07, up by 18.0% from ₹9.38 in Q1FY26. However, there was a significant decline in EPS compared to the previous year, with a 63.3% decrease from ₹30.14 in Q2FY25. This variation in EPS, despite the increase in net profit, suggests changes in the share capital structure or other factors affecting earnings per share computation. The company's ability to manage its expenses while increasing profits highlights its strategic operational capabilities.