Prime Highlights
- Coforge secured a $158 million five-year contract from a UK-based client, boosting investor sentiment and lifting its shares in early trade.
- The deal strengthens Coforge’s revenue visibility in Europe and reflects growing demand for AI-led digital transformation services.
Key Facts
- The contract will begin in April 2026, with revenue accruing evenly over five years, alongside potential additional income from related engagements.
- In the December quarter, Coforge reported revenue of ₹4,188 crore and EBIT of ₹559.4 crore, with margins narrowing to 13.4% from 14% in the previous quarter.
Background
Coforge Limited on Wednesday announced that it has secured a $158 million contract from a UK-based client, sending its shares higher in early trade.
The five-year agreement will start in April 2026. Coforge said revenue from the deal will accrue evenly over the contract period. The company also expects a significant increase in additional revenues linked to the core engagement from the same client over the next five years.
John Speight, President and Europe Business Leader at Coforge, said AI-led discussions focused on innovation, governance, and resilience are driving a rise in both the number and size of large deals across Europe. He added that the company’s AI-powered platforms, Forge-X, EvolveOps.AI, BlueSwan, Quasar, and Data Cosmos, strengthen its ability to meet changing client demands.
Coforge operates in 25 countries with 33 global delivery centres. The company provides digital services and solutions, focusing on AI, cloud, data, integration, and automation to help enterprises modernise operations.
In its December quarter results, Coforge reported revenue of ₹4,188 crore, up 5.1% compared to the previous quarter. The figure was largely in line with market expectations. Earnings before interest and tax (EBIT) stood at ₹559.4 crore. Margins narrowed by 60 basis points to 13.4%, compared with 14% in the September quarter.
Shares of Coforge were trading 1.97% higher at ₹1,236.10. Despite the day’s gain, the stock has fallen 25.76% over the past month amid broader market weakness.
The new contract is expected to support revenue visibility and strengthen Coforge’s position in the European market.