Q3 2026 Coforge Ltd Earnings Call Transcript
Key Points
- Coforge Ltd (BOM:532541) reported a year-to-date dollar revenue growth of 32.8%, showcasing strong performance.
- The company signed six large deals in a seasonally weak quarter, indicating robust deal momentum.
- Coforge Ltd's next 12 months signed order book is 30% higher than the same time last year, setting up for continued growth.
- The company plans to achieve a 15% EBIT in Q4, aligning with its fiscal year '26 guidance of 14% EBIT.
- Coforge Ltd's acquisition of Encora is expected to enhance its AI-led engineering and data services capabilities, accelerating growth.
- The EBIT margin for the quarter stood at 13.4%, down 60 bps quarter-on-quarter, impacted by wage hikes and hedge losses.
- Hedge losses increased to INR434 million, adversely affecting reported EBIT margins.
- There were exceptional items totaling INR147 crores, including expenses related to new labor codes and legal expenses from a cybersecurity incident.
- The company anticipates additional expenses related to the Encora acquisition over the next two quarters, potentially impacting financials.
- The BFS and Insurance verticals showed softness on a year-over-year basis, raising concerns about their future performance.
Ladies and gentlemen, and welcome to the Coforge Limited Q3 FI20 2026 earnings conference call.
All participant lines will be in the listen-only mode. We will open the floor for questions post the management's opening comments. Please note that this call is being recorded.
Joining us today from the Coforge Leadership team are Mr. Sudhir Singh, CEO, Mr. Arun Goyal, CFO; Mr. Simon Pearson, Global Head Consulting and Solutions; and Mr. Manish Hemrajani, Head of Investor Relations.
I now hand the call to Mr. Manish Hemrajani. Over to you, sir.
Thank you. Good morning and good evening to everyone on the call and thank you for joining us today to discuss Coforge's financial results for the third quarter of fiscal year '26 that ended on December 31, 2025. As Inba indicated in her introduction, we have Simon Pearson filling in today for John Speight.
Before we begin, a reminder that today's discussion may include forward-looking statements which involve risks and
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