Coforge Q3FY25 revenue surges 40.8% YoY to $397.1 million

Amid a challenging macroeconomic environment, Coforge Limited has emerged as a standout, with the company reporting a 40.8% year-on-year (YoY) increase in revenue in USD terms, reaching $397.1 million (₹3,318.2 crore). Quarter-on-quarter (QoQ) growth was equally impressive at 7.5% in USD terms, with constant currency (CC) growth pegged at 8.4%.

Coforge reported an adjusted EBITDA of ₹589 crore ($70.5 million), reflecting a YoY growth of 41.2% and a margin expansion of 122 basis points (bps) QoQ to 17.8%. Profit after tax (PAT), excluding minority interest, stood at ₹256 crore, up 9.5% QoQ. Adjusted PAT showed a 10.3% YoY increase, reaching ₹268 crore.

Coforge's order executable for the next 12 months now stands at $1.37 billion, marking a 40.1% YoY increase. The company secured four large deals during the quarter, driving a quarterly order intake of $501 million—the second consecutive quarter of a $500+ million intake. These deals spanned multiple geographies, including North America and ASEAN​.

The Americas accounted for 56% of total revenue, while EMEA contributed 34.2%. Broad-based growth was observed across verticals, with Banking and Financial Services (BFS) making up 27.5% of revenue and Travel, Transportation, and Hospitality (TTH) contributing 18.1%​​.

Operational strength and strategic expansion

Operational cash flow for Q3FY25 surged to $47 million, a staggering 211% QoQ increase, underlining enhanced efficiency in cash conversion. Headcount also saw sequential growth, with net additions of 611 employees, bringing the total workforce to 33,094—a 16% increase since the start of FY25. Attrition rates dropped to 11.9%, reflecting Coforge’s focus on employee retention​​.

The company’s strategic initiatives, including the integration of Cigniti, have borne fruit which delivered 3.5% cc QoQ growth. Cigniti’s EBITDA margin improved to 17.3% during the quarter, up from 11% in Q4FY24, showcasing operational synergies​.

“An 8.4% sequential cc growth, a 40.3% cc YoY growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 bps in margins, a Cigniti business that has already touched an EBITDA margin of 17.3%, a large deals pipeline that is looking very robust and finally an ever-strengthening next twelve month signed order book which now is 40% higher YoY gives us confidence that the coming year shall once again see robust and sustained growth,” said Sudhir Singh, chief executive officer and executive director, Coforge Ltd in a press filing.

Meanwhile, the company has maintained its Microsoft Azure Expert Managed Service Provider status and secured the ISG Leader designation in Insurance Services for 2024. The company also announced an interim dividend of ₹19 per share, enhancing shareholder value while maintaining strategic investments in growth areas.