Q2 2026 Coforge Ltd Earnings Call Transcript
Key Points
- Coforge Ltd (BOM:532541) reported a strong sequential revenue growth of 5.9% in constant currency terms, with significant contributions from the travel vertical.
- The company achieved an EBIT margin of 14% for the quarter, marking an increase of 251 basis points quarter-on-quarter.
- Order intake for the quarter was robust at USD 514 million, with the executable order book reaching a record $1.63 billion, up 26.7% year-on-year.
- Coforge Ltd (BOM:532541) continues to leverage AI to transform its core business, enhancing delivery models with proprietary platforms like Core Insight AI and BlueSwan.
- The company maintains a low attrition rate of 11.4%, one of the lowest in the industry, indicating strong employee retention and satisfaction.
- The hedge loss for the quarter increased to INR 307 million, impacting the reported EBIT by 78 basis points.
- Despite strong revenue growth, the headcount addition was relatively modest, which may indicate potential strain on resources or reliance on non-linear growth factors.
- The DSO (Days Sales Outstanding) has been steadily increasing, raising concerns about the working capital cycle and cash flow management.
- There is a significant gap between constant currency revenue growth and dollar revenue growth, attributed to hedge losses and currency fluctuations.
- The company anticipates furloughs in the upcoming quarter, which could impact revenue and operational efficiency.
Ladies and gentlemen, good day, and welcome to the Coforge Limited Q2 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
We have with us today from the management team, (technical difficulty) Mr. John Speight, Chief Customer Success Officer; Mr. Saurabh Goel, CFO; and Mr. Manish Hemrajani, Head of Investor Relations. I now hand over the conference to Mr. Manish Hemrajani. Thank you, and over to you, sir.
Good afternoon and thank you for joining us to discuss Coforge's results for the second quarter of FY26, which ended on September 30, 2025. Before we begin, please note that today's discussion may include forward-looking statements, which involve (technical difficulty) actual results may differ materially, and Coforge assumes no obligation to update these statements. With that, I'll hand the call over to Sudhir.
Thank you,
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