Coforge Ltd. has reported its third-quarter earnings for the financial year ending March 2026, registering a 5% sequential revenue growth, while profit saw a 33% sequential downtick, largely driven by Rs 118 crore one-time expenses related to Labour Codes. The company has also announced an interim dividend for the third quarter.
The IT services firm's revenue for the December quarter stood at Rs 4,188 crore, compared to the topline of Rs 3,986 crore in the previous quarter. Net profit, meanwhile, fell 33% to Rs 250 crore compared to the previous quarter's bottom line of Rs 375.8 crore. The profits were largely impacted by the IT Labour Codes' impact of Rs 118 crore.
Coforge's margin for the third quarter took a slight hit of 70 basis points to 13.4%.
The IT firm, which notably acquired AI firm Encora in December for a total consideration of $2.35 billion, also announced an interim dividend payment of Rs 4 per equity share. The firm has set January 31 as the record date for the dividend.
Coforge Q3 Highlights (QoQ)
- Net profit down 33.4% at Rs 250.2 crore versus Rs 375.8 crore.
- Revenue up 5% at Rs 4,188 crore versus Rs 3,986 crore.
- EBIT down 0.21% at Rs 559 crore versus Rs 560 crore.
- EBIT margin down 70 bps at 13.4% versus 14%.
IT attrition for Coforge at the end of the December quarter stood at 10.9%, with a headcount addition of 445 for the corresponding quarter. The company's executable order book rose 30% year-on-year to $1.72 billion.
The executable order book for the company is now up 30% from last year at $1.72 billion, or roughly around Rs 15,700 crore, as per its investor presentation. The IT firm added 6 large deals in this quarter across North America, Europe and APAC.
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