Coforge delivered a blockbuster fourth quarter for FY26, with consolidated net profit surging 134.4% year-on-year and 144.7% sequentially to Rs 612.3 crore — one of the most dramatic earnings accelerations among mid-cap IT companies this results season. The Cigniti acquisition integration appears to be driving meaningful synergies, with margin expansion across every geography.
The consolidated Q4 FY26 numbers
| Metric | Q4 FY26 | YoY | QoQ |
|---|---|---|---|
| Revenue | Rs 4,450.4 Cr | +30.0% | +5.2% |
| EBITDA | Rs 876.5 Cr | +66.4% | +21.2% |
| EBITDA Margin | 19.7% | +430 bps | +260 bps |
| PAT | Rs 612.3 Cr | +134.4% | +144.7% |
| EPS (INR) | Rs 18.1 | +134.2% | +145.3% |
| EBIT | Rs 696 Cr | — | — |
| EBIT Margin | 15.7% | — | +260 bps QoQ |
The standout numbers are the EBITDA margin expanding to 19.7% — up 430 basis points year-on-year and 260 basis points sequentially — and the PAT more than doubling year-on-year. The sequential PAT jump of 144.7% from Rs 250 crore in Q3 to Rs 612 crore in Q4 is particularly striking and suggests a significant improvement in operating leverage as well as potentially reduced one-time costs that had weighed on the preceding quarter.
Geography-wise performance
Americas remained the largest segment, delivering revenue of Rs 2,524.5 crore — up 34.6% year-on-year and 5.3% sequentially. EBIT for the Americas surged 79.8% year-on-year to Rs 483 crore, with EBIT margin expanding 481 basis points year-on-year to 19.1%.
Europe, Middle East and Africa posted revenue of Rs 1,258.4 crore — up 14.3% year-on-year and 5.3% sequentially. EBIT grew 41.9% year-on-year to Rs 231.8 crore, with EBIT margin at 18.4% — up 359 basis points year-on-year and a sharp 410 basis points sequentially, indicating strong execution discipline in the region.
The Rest of World segment was the turnaround story of the quarter — revenue grew 49.9% year-on-year and 4.4% sequentially to Rs 667.5 crore, and EBIT swung from a loss to a profit of Rs 22 crore, with EBIT margin at 3.3% — a loss-to-profit movement both year-on-year and sequentially that signals the integration of newer geographies and capabilities is beginning to bear fruit.
What is driving the acceleration
The Cigniti acquisition, completed earlier in FY26, significantly expanded Coforge’s testing and quality engineering capabilities and added meaningful revenue scale. The revenue growth of 30% year-on-year — well above the sector average — reflects both organic momentum and the inorganic contribution from Cigniti, which the company has been rapidly integrating. The EBITDA margin expansion to 19.7% suggests that integration synergies are ahead of schedule and that the combined entity is generating better operating leverage than the market had modelled.
The EBIT margin improvement from 13.1% in Q3 to 15.7% in Q4 — a 260 basis point sequential jump — is particularly significant for a company that has historically traded at a discount to Tier-1 IT on margins. If this margin level is sustained, Coforge’s valuation re-rating case strengthens materially.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making investment decisions.