Coforge Posts Strong Q3 Growth Amid Seasonal Slowdown
Event summary
- Revenue up 5.1% QoQ and 28.5% YoY to INR 4,188 crore (US$ 478.2 million)
- EBITDA margin expanded by 191 bps YoY to 17.4%
- Six large deals signed across North America, Europe, and APAC
- Executable order book grew 30.4% YoY to US$ 1.72 billion
- Attrition rate dropped to 10.9% from 11.4% sequentially
The big picture
Coforge's strong Q3 performance, despite seasonal headwinds, underscores the growing demand for digital transformation services. The company's strategic focus on Data, Cloud, and AI engineering, combined with its upcoming merger with Encora, positions it for sustained outperformance in a competitive IT services market. The expansion of EBITDA margins and a robust large deal pipeline further solidify its position as a key player in the industry.
What we're watching
- Integration Execution
- How Coforge will merge its $2 billion core of Data, Cloud and AI-led engineering with Encora's capabilities to sustain growth through FY26 and FY27.
- Large Deal Pipeline
- Whether the company can maintain its large deal momentum across North America, Europe, and APAC in a seasonally weak quarter.
- Attrition Trends
- The pace at which Coforge can further reduce its attrition rate, currently among the lowest in the industry at 10.9%.
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