Coforge share price slumped over 8% in early trade on Wednesday, after the company's Non-Executive Independent Director and Chairman of the Board O P Bhatt resigned with immediate effect. The IT stock declined as much as 8.67% to Rs 1,780.10 apiece on the BSE.
Bhatt also ceases to be member of the Committees of the Company with immediate effect, Coforge said in a regulatory filing on September 9.
The company's Board has decided to designate Vivek Sharma, Non-Executive Independent Director, as interim Chairperson of the company till January 31, 2027, it added.
Bhatt's resignation follows concerns raised by an internal audit over the company's recent board evaluation process.
Coforge said its internal auditor, as part of the Q2 FY26 internal audit plan, reviewed the process followed in relation to the Board Evaluation Exercise under the guidance of the Chairman and the resulting Board Evaluation Report (BER) presented by the Chairman to the Board.
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“The review identified certain concerns in relation to the manner in which the BER had been dealt with and presented to the Board, including that certain material information contained in or relating to the BER and the performance of the Chairman had not been fully disclosed to the Board when the BER was presented,” Coforge said.
Considering these observations, the Board set out its concerns and sought an explanation from the Chairman in relation to the matters identified in the review. The Chairman provided his response to the matters raised and the Board was in the process of considering and evaluating his explanation and had not taken any final decision in relation to the matters raised with him, the filing added.
While the Chairman stated, that he had acted in good faith, the Chairman tendered his resignation from the Board with immediate effect on September 8, 2026.
Coforge said Bhatt's resignation was accepted with immediate effect.
In a separate filing, Coforge clarified that the matters dealing with the Board Evaluation Exercise conducted in March/April 2026, for the previous year, do not in any way relate to the company's financial statements or financial reporting or to any financial matters of the company.
Such matters solely relate to the Board Evaluation Exercise which is a regulatory requirement, it added.
“The Company also clarifies that such matters do not have any bearing on the Company's operations, business performance and near-term, medium-term or long-term stated guidance,” Coforge said.
The company said it was making this clarification to avoid any misunderstanding that the matters relating to the board evaluation exercise have any connection with the company's financial performance, financial reporting or business operations.
“The Board and the management team continues to support the Company in its business and operations as usual, and the Company remains focused on executing its business and growth plans,” it added.
Analyst's View
Analysts at Choice Institutional Equities believe the latest development would have limited near-term impact on Coforge's operations or earnings, while the resolution of the governance matter remains a key monitorable.
“Greater clarity from the company on the identified gaps, corrective measures and strengthening of board processes should help alleviate investor concerns and rebuild confidence, with business fundamentals likely to remain largely unaffected,” said Choice Institutional Equities.
The brokerage firm has a ‘Buy' rating on Coforge shares with a target price of Rs 2,050 apiece.
Jefferies also believe the resignation of OP Bhatt was not surprising and not very negative for the company. It has a ‘Buy' call on the stock with a target price of Rs 2,040 apiece.
Coforge Share Price Performance
Coforge share price has gained over 3% in one month, and has rallied 30% in three montsh. The mid-tier IT stock has surged 57% in six month, and has risen over 8% in one year. Over the past three years, Coforge stock price has jumped 65% and has spiked nearly 80% in five years.
Coforge Share Price Today
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At 9:22 AM, Coforge share price was trading 6.80% lower at Rs 1,816.65 apiece on the BSE.
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