Coforge Ltd reported a strong December quarter, led by a sharp rise in large deal signings and improved margins, even as growth moderated sequentially on a high base. The IT services firm signed six large deals during the quarter and reported an order intake of $593 million, pushing its executable order book for the next 12 months to $1.72 billion, up over 30% year-on-year.

The company said the strong order book provides revenue visibility despite an uncertain macro environment. “The momentum in large deals across geographies reflects the strength of our client relationships and the relevance of our digital, cloud and data-led offerings,” Sudhir Singh, chief executive officer and executive director, said during the post-results press conference.

Revenue for the quarter ended December 31, 2025, came in at ₹4,188 crore ($478.2 million), up 5.1% quarter-on-quarter in rupee terms and 28.5% year-on-year. In constant currency terms, revenue grew 4.4% sequentially and 21.5% annually.

Also read: Coforge to acquire Encora for $2.35 billion in a deal involving share swap, likely QIP

Profitability improved meaningfully during the quarter. EBITDA rose 37.7% year-on-year to $83.4 million, while EBITDA margin expanded 191 basis points to 17.4%. EBIT margin also improved by a similar margin to 13.4%. Profit after tax, excluding extraordinary items, stood at ₹364 crore, a jump of 71.2% over the year-ago period.

Singh attributed the margin expansion to operating leverage and disciplined execution. “Our focus on operational efficiency and delivery excellence is translating into consistent margin improvement, even as we continue to invest in talent and capabilities,” he said.

Deal wins during the quarter were spread across North America, Europe and Asia-Pacific, although the company did not disclose individual deal sizes but reiterated that the six large contracts were across core verticals, including travel, banking and insurance.

The board has recommended an interim dividend of ₹4 per share, with January 31, 2026, set as the record date.

Hiring outlook

On the people front, Coforge’s total headcount stood at 35,341 at the end of the quarter, with a net addition of 445 employees sequentially. Attrition continued to ease, with the last twelve months attrition rate dropping to 10.9%, down from 11.4% in the previous quarter and among the lowest levels in the industry.

“Where there is no growth and where the run enterprise budgets are compressed because of AI, hiring would logically get compressed as it has. In our case, it has not been compressed,” Singh said. He added that the company continues to hire aggressively from campuses and laterally, backed by confidence in future growth. 

As far as H-1B visa is concerned, Coforge has the same view as most of its peers: they have absolutely “no intent of filing any H-1B visa in this year or beyond”, given the changes that have happened.

Looking ahead, Singh said the company remains cautious but confident. “While clients continue to be selective with discretionary spending, the demand environment for cost optimisation, digital transformation and platform modernisation remains steady,” he said, adding that the current order pipeline positions Coforge well for sustained growth over the coming quarters.