Coforge
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Clients clamour for steep price cuts and more productivity in AI era
Outcome-based contracts increasingly popular over billable-hour model
Nimble mid-tier firms win business as AI levels playing field
Some firms said to be making irrational decisions to please clients
By Sai Ishwarbharath B, Abhirami G and Haripriya Suresh
BENGALURU, August 21 (Reuters) - Artificial intelligence promised to disrupt India's IT industry and it is delivering.
Outsourcing giants like Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS, HCLTech HCLT.NS and Cognizant CTSH.O are rejigging business models, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.
Industry executives also say they are losing some work entirely as customers use AI to shift tasks in-house, while all the uncertainty that the new technology has brought is resulting in shorter contracts.
And where once the big IT companies won contracts because they could point to their huge employee base, that has become less and less of an advantage as AI automates more and more tasks — levelling the playing field for smaller rivals which have jumped at opportunities to snatch business.
"It's a desperate market for the service providers. The odds are very much in favour of clients," said Jimit Arora, CEO of research and advisory firm Everest Group.
Software companies globally have been battered by worries that AI will render key parts of their business obsolete, but India's IT industry — worth $315 billion in annual revenue — is the most obvious victim with its traditional reliance on billable hours.
The Nifty IT index .NIFTYIT has tumbled by a fifth this year, with its 10 constituents losing a combined $73 billion in market value.
CONTRACTS SHIFT TO MEASURABLE OUTCOMES
These days, pricing for contracts is more likely to be dictated by performance outcomes.
TCS Chief Executive K Krithivasan told Reuters that about 80% of the company's contracts within its finance, human resources and other business services segment are now based on outcome performance measures.
That number represents a doubling since AI went mainstream in late 2023, said a person with knowledge of the matter, who was not authorised to speak to media and declined to be identified. TCS did not respond to a request for comment.
Other examples in the industry include an AI and automation deal Cognizant CTSH.O struck with Daimler Truck DTGGe.DE in February. It stipulated AI-related cost savings would be split between the vendor and the client, according to people familiar with the terms.
"With AI, the fundamentals are shifting," Cognizant said in a statement to Reuters, though it declined to comment on specific contracts. "Clients now expect more value and measurable outcomes, and we are re-forging our model for that reality."
Daimler Truck did not respond to a request for comment.
A separate multiyear cloud management deal forged in June 2025 was structured so HCLTech will not be paid by German utility E.ON EONGn.DE for the first year, with payments from the second year tied to efficiency gains and specific business outcomes, according to two people familiar with the agreement.
E.ON declined to comment, while HCLTech did not respond to a request for comment.
CLIENTS WANT MORE BANG FOR THEIR BUCK
As AI drives productivity gains, clients have become increasingly vocal about getting more for less.
Persistent Systems PERS.NS CEO Sandeep Kalra told Reuters that the IT provider's clients were demanding the same work for 25% to 30% less while expecting faster delivery and higher productivity.
But on the plus side, AI is helping Persistent win larger deals than it would have previously.
"The demarcation of a scale player only by revenue is not necessarily a big thing today," he said.
IT executives and analysts alike say competition from mid-sized firms has become brutally fierce.
Many customers now want rapid development of pilot programmes and smaller firms are winning mandates by deploying senior leaders quickly and offering flexible pricing, says Phil Fersht, CEO and chief analyst at HFS Research.
"Many Tier 2 firms have been more agile and hungry in this phase," he said.
Both Persistent and Coforge COFO.NS, another mid-sized IT services provider, have seen revenue in dollar terms grow by double digits for at least eight quarters in a row. In April-June, revenue for Persistent surged 16%, while Coforge's sales jumped by a third.
In contrast, TCS, Infosys, Wipro and HCLTech had subdued growth of 1% to 3%.
IRRATIONAL EXUBERANCE?
As pressure from clients grows, some firms are making rash decisions, says Tech Mahindra TEML.NS CEO Mohit Joshi.
Some rivals are factoring in productivity gains of 70% to 80% over five to seven years and guaranteeing prices despite rising chip costs, Joshi told an analysts' call last month, adding that his company had chosen not to take such risks.
"Clearly, there is a ton of competition out there, and our competition at times is doing irrational things," he said.
Infosys last month also told analysts it had walked away from contracts that were no longer economically viable.
TCS's Krithivasan said that so far the company has been able to offset AI-related downward pressure on revenue with new work.
"But how fast and how much more we are able to go ahead of the (revenue) deflation will determine the growth going forward," he added.
TCS is also boosting its numbers of engineers who embed with clients to accelerate AI adoption and is hunting for AI acquisitions.
It is thus far the only Indian IT services provider to have announced mass layoffs in the AI era, implementing cuts of more than 12,000 last year. But companies have flagged that their traditional role as huge hirers of new recruits may be winding down.
The country's IT giants will no longer need large ranks of entry-level engineers, according to former Infosys CFO V. Balakrishnan.
"The pyramid model is gone. With coding agents, we no longer need basic coding," he said.
(Reporting by Sai Ishwarbharath B, Abhirami G and Haripriya Suresh in Bengaluru; Editing by Dhanya Skariachan and Edwina Gibbs)
Clients clamour for steep price cuts and more productivity in AI era
Outcome-based contracts increasingly popular over billable-hour model
Nimble mid-tier firms win business as AI levels playing field
Some firms said to be making irrational decisions to please clients
By Sai Ishwarbharath B, Abhirami G and Haripriya Suresh
BENGALURU, August 21 (Reuters) - Artificial intelligence promised to disrupt India's IT industry and it is delivering.
Outsourcing giants like Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS, HCLTech HCLT.NS and Cognizant CTSH.O are rejigging business models, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.
Industry executives also say they are losing some work entirely as customers use AI to shift tasks in-house, while all the uncertainty that the new technology has brought is resulting in shorter contracts.
And where once the big IT companies won contracts because they could point to their huge employee base, that has become less and less of an advantage as AI automates more and more tasks — levelling the playing field for smaller rivals which have jumped at opportunities to snatch business.
"It's a desperate market for the service providers. The odds are very much in favour of clients," said Jimit Arora, CEO of research and advisory firm Everest Group.
Software companies globally have been battered by worries that AI will render key parts of their business obsolete, but India's IT industry — worth $315 billion in annual revenue — is the most obvious victim with its traditional reliance on billable hours.
The Nifty IT index .NIFTYIT has tumbled by a fifth this year, with its 10 constituents losing a combined $73 billion in market value.
CONTRACTS SHIFT TO MEASURABLE OUTCOMES
These days, pricing for contracts is more likely to be dictated by performance outcomes.
TCS Chief Executive K Krithivasan told Reuters that about 80% of the company's contracts within its finance, human resources and other business services segment are now based on outcome performance measures.
That number represents a doubling since AI went mainstream in late 2023, said a person with knowledge of the matter, who was not authorised to speak to media and declined to be identified. TCS did not respond to a request for comment.
Other examples in the industry include an AI and automation deal Cognizant CTSH.O struck with Daimler Truck DTGGe.DE in February. It stipulated AI-related cost savings would be split between the vendor and the client, according to people familiar with the terms.
"With AI, the fundamentals are shifting," Cognizant said in a statement to Reuters, though it declined to comment on specific contracts. "Clients now expect more value and measurable outcomes, and we are re-forging our model for that reality."
Daimler Truck did not respond to a request for comment.
A separate multiyear cloud management deal forged in June 2025 was structured so HCLTech will not be paid by German utility E.ON EONGn.DE for the first year, with payments from the second year tied to efficiency gains and specific business outcomes, according to two people familiar with the agreement.
E.ON declined to comment, while HCLTech did not respond to a request for comment.
CLIENTS WANT MORE BANG FOR THEIR BUCK
As AI drives productivity gains, clients have become increasingly vocal about getting more for less.
Persistent Systems PERS.NS CEO Sandeep Kalra told Reuters that the IT provider's clients were demanding the same work for 25% to 30% less while expecting faster delivery and higher productivity.
But on the plus side, AI is helping Persistent win larger deals than it would have previously.
"The demarcation of a scale player only by revenue is not necessarily a big thing today," he said.
IT executives and analysts alike say competition from mid-sized firms has become brutally fierce.
Many customers now want rapid development of pilot programmes and smaller firms are winning mandates by deploying senior leaders quickly and offering flexible pricing, says Phil Fersht, CEO and chief analyst at HFS Research.
"Many Tier 2 firms have been more agile and hungry in this phase," he said.
Both Persistent and Coforge COFO.NS, another mid-sized IT services provider, have seen revenue in dollar terms grow by double digits for at least eight quarters in a row. In April-June, revenue for Persistent surged 16%, while Coforge's sales jumped by a third.
In contrast, TCS, Infosys, Wipro and HCLTech had subdued growth of 1% to 3%.
IRRATIONAL EXUBERANCE?
As pressure from clients grows, some firms are making rash decisions, says Tech Mahindra TEML.NS CEO Mohit Joshi.
Some rivals are factoring in productivity gains of 70% to 80% over five to seven years and guaranteeing prices despite rising chip costs, Joshi told an analysts' call last month, adding that his company had chosen not to take such risks.
"Clearly, there is a ton of competition out there, and our competition at times is doing irrational things," he said.
Infosys last month also told analysts it had walked away from contracts that were no longer economically viable.
TCS's Krithivasan said that so far the company has been able to offset AI-related downward pressure on revenue with new work.
"But how fast and how much more we are able to go ahead of the (revenue) deflation will determine the growth going forward," he added.
TCS is also boosting its numbers of engineers who embed with clients to accelerate AI adoption and is hunting for AI acquisitions.
It is thus far the only Indian IT services provider to have announced mass layoffs in the AI era, implementing cuts of more than 12,000 last year. But companies have flagged that their traditional role as huge hirers of new recruits may be winding down.
The country's IT giants will no longer need large ranks of entry-level engineers, according to former Infosys CFO V. Balakrishnan.
"The pyramid model is gone. With coding agents, we no longer need basic coding," he said.
(Reporting by Sai Ishwarbharath B, Abhirami G and Haripriya Suresh in Bengaluru; Editing by Dhanya Skariachan and Edwina Gibbs)
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.
By Ujjaini Dutta
BENGALURU, Aug 14 (Reuters Breakingviews) - India's $315 billion IT industry was once easy for investors to read: work was largely billed on human effort, so headcount was a straightforward indicator of revenue growth and earnings potential. That correlation is fraying as AI tools made by Anthropic, OpenAI and others mean IT companies can serve clients with fewer people and increase revenue without hiring. New measures are needed to differentiate between firms adapting fast enough and those who can't keep up.
Traditional contracts paid IT companies for hours worked and engineers deployed. That model is fading fast, especially at smaller and more agile firms. Yet the distinction is not reflected in share prices. Investors have indiscriminately dumped shares in giants led by $90 billion Tata Consultancy Services TCS.NS , Infosys INFY.NS and Wipro WIPR.NS, alongside stakes in smaller providers like Blackstone-backed BX.N Mphasis MBFL.NS. The benchmark Nifty IT index .NIFTYIT is down 17% this year.
Some companies are starting to report "AI revenue". Venu Lambu, the boss of $15 billion LTM LTIM.NS, reckons it will become the industry's defining metric but that seems unlikely. At Tata Consultancy, this newly adopted measure is poorly explained and, worse, lumpy. A more nuanced approach is probably required.
From March next year, $5 billion Mphasis,will report “key operating metrics” such as annual recurring revenue and platform attach rate. This suggests it sees a growing share of future revenue from selling software-like services. The firm already generates less than half of its topline from the traditional "Time and Materials" billable hours model. Similarly, $8.5 billion Coforge is building up a portfolio of AI-related software products and tools including 8 AI platforms, 22 AI assets and over 100 reusable AI agents, per its latest post-earnings call.
AI is not only making engineers more productive; it is also encouraging IT firms to package their expertise into reusable software platforms as clients increasing value speed of deployment. So instead of building a custom customer-service application from scratch, an outsourcer could deploy a pre-built AI platform across dozens of clients and charge subscription fees.. Attach rate would show how often clients purchase additional products or services after adopting a platform, offering a clue about future revenue growth.
This shift to a "services-as-software" model is imminent, says Sanjeev Narsipur, Managing Director and Lead of Digital, AI and Technology Services at Alvarez & Marsal. And as this line blurs globally, AI developers OpenAI and Anthropic are also moving into enterprise services. Whatever the way forward, after decades of falling back on old metrics, IT firms need to find new ways to demonstrate their worth.
Follow Ujjaini Dutta on LinkedIn and X.
CONTEXT NEWS
Blackstone-backed Mphasis sees a shift toward "recurring, platform-attached revenue” the company said on July 24 in a post-earnings call. In May, the company said it would start reporting “key operating metrics” such as annual revenue runrate, platform attach rate and net retention rate for the year ending March 2028.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.
By Ujjaini Dutta
BENGALURU, Aug 14 (Reuters Breakingviews) - India's $315 billion IT industry was once easy for investors to read: work was largely billed on human effort, so headcount was a straightforward indicator of revenue growth and earnings potential. That correlation is fraying as AI tools made by Anthropic, OpenAI and others mean IT companies can serve clients with fewer people and increase revenue without hiring. New measures are needed to differentiate between firms adapting fast enough and those who can't keep up.
Traditional contracts paid IT companies for hours worked and engineers deployed. That model is fading fast, especially at smaller and more agile firms. Yet the distinction is not reflected in share prices. Investors have indiscriminately dumped shares in giants led by $90 billion Tata Consultancy Services TCS.NS , Infosys INFY.NS and Wipro WIPR.NS, alongside stakes in smaller providers like Blackstone-backed BX.N Mphasis MBFL.NS. The benchmark Nifty IT index .NIFTYIT is down 17% this year.
Some companies are starting to report "AI revenue". Venu Lambu, the boss of $15 billion LTM LTIM.NS, reckons it will become the industry's defining metric but that seems unlikely. At Tata Consultancy, this newly adopted measure is poorly explained and, worse, lumpy. A more nuanced approach is probably required.
From March next year, $5 billion Mphasis,will report “key operating metrics” such as annual recurring revenue and platform attach rate. This suggests it sees a growing share of future revenue from selling software-like services. The firm already generates less than half of its topline from the traditional "Time and Materials" billable hours model. Similarly, $8.5 billion Coforge is building up a portfolio of AI-related software products and tools including 8 AI platforms, 22 AI assets and over 100 reusable AI agents, per its latest post-earnings call.
AI is not only making engineers more productive; it is also encouraging IT firms to package their expertise into reusable software platforms as clients increasing value speed of deployment. So instead of building a custom customer-service application from scratch, an outsourcer could deploy a pre-built AI platform across dozens of clients and charge subscription fees.. Attach rate would show how often clients purchase additional products or services after adopting a platform, offering a clue about future revenue growth.
This shift to a "services-as-software" model is imminent, says Sanjeev Narsipur, Managing Director and Lead of Digital, AI and Technology Services at Alvarez & Marsal. And as this line blurs globally, AI developers OpenAI and Anthropic are also moving into enterprise services. Whatever the way forward, after decades of falling back on old metrics, IT firms need to find new ways to demonstrate their worth.
Follow Ujjaini Dutta on LinkedIn and X.
CONTEXT NEWS
Blackstone-backed Mphasis sees a shift toward "recurring, platform-attached revenue” the company said on July 24 in a post-earnings call. In May, the company said it would start reporting “key operating metrics” such as annual revenue runrate, platform attach rate and net retention rate for the year ending March 2028.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
Aug 11 (Reuters) - Coforge Limited COFO.NS:
COFORGE - LAUNCHES PRIVATE EQUITY BUSINESS UNIT
Source text: ID:nBSEY8Jnd
Further company coverage: COFO.NS
(([email protected];))
Aug 11 (Reuters) - Coforge Limited COFO.NS:
COFORGE - LAUNCHES PRIVATE EQUITY BUSINESS UNIT
Source text: ID:nBSEY8Jnd
Further company coverage: COFO.NS
(([email protected];))
** CLSA says Coforge'sCOFO.NS strong order book provides upside to brokerage's FY27 revenue estimates
** Raises PT 6% to 2170 rupees, reiterates "high conviction outperform" rating; retains IT firm as top sector pick
** HSBC expects near mid-teen growth in overall business in FY27-29, among highest in its IT coverage; raises PT ~14% to 2000 rupees, maintains "buy"
** BofA expects revenue synergies from Encora acquisition to become more visible by H2, providing the next stock trigger; raises PT 10% to 1900 rupees, maintains "buy"
** Cites Coforge's strong sales, execution, industry specialization and ability to assimilate acquisitions as key strengths
** COFO up 4.4% to ~6-month high of 1760 rupees, extending gains to 4th straight session
(Reporting by Aleef Jahan in Bengaluru)
** CLSA says Coforge'sCOFO.NS strong order book provides upside to brokerage's FY27 revenue estimates
** Raises PT 6% to 2170 rupees, reiterates "high conviction outperform" rating; retains IT firm as top sector pick
** HSBC expects near mid-teen growth in overall business in FY27-29, among highest in its IT coverage; raises PT ~14% to 2000 rupees, maintains "buy"
** BofA expects revenue synergies from Encora acquisition to become more visible by H2, providing the next stock trigger; raises PT 10% to 1900 rupees, maintains "buy"
** Cites Coforge's strong sales, execution, industry specialization and ability to assimilate acquisitions as key strengths
** COFO up 4.4% to ~6-month high of 1760 rupees, extending gains to 4th straight session
(Reporting by Aleef Jahan in Bengaluru)
** Shares of Coforge COFO.NS rise 9.2% to 1,667.3 rupees, their highest since Feb. 3
** IT firm's Q1 PAT rises 110% Y/Y as revenue jumps 49%, led by strong growth in the Americas segment
** Over 10.8 mln shares traded, 3.2x the 30-day avg
** Stock rated "buy" on avg by 34 analysts; median PT 1690 rupees - data compiled by LSEG
** Stock up 0.5% YTD
(Reporting by Aleef Jahan in Bengaluru)
** Shares of Coforge COFO.NS rise 9.2% to 1,667.3 rupees, their highest since Feb. 3
** IT firm's Q1 PAT rises 110% Y/Y as revenue jumps 49%, led by strong growth in the Americas segment
** Over 10.8 mln shares traded, 3.2x the 30-day avg
** Stock rated "buy" on avg by 34 analysts; median PT 1690 rupees - data compiled by LSEG
** Stock up 0.5% YTD
(Reporting by Aleef Jahan in Bengaluru)
Coforge has signed a five-year contract valued at over $230 million with a major European client. The engagement will deliver an AI-led transformation programme combining low-code/no-code platforms, AI-powered automation and accelerated software development. The company stated the programme is one of its largest AI-led transformation deals in the region. It will focus on improving the client's operational efficiency, decision-making and speed of delivery at scale.
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Coforge has signed a five-year contract valued at over $230 million with a major European client. The engagement will deliver an AI-led transformation programme combining low-code/no-code platforms, AI-powered automation and accelerated software development. The company stated the programme is one of its largest AI-led transformation deals in the region. It will focus on improving the client's operational efficiency, decision-making and speed of delivery at scale.
Powered by Tijori
July 24 (Reuters) - Coforge Ltd COFO.NS:
COFORGE- SECURES $230 MILLION PLUS FIVE-YEAR CONTRACT WITH A EUROPEAN CLIENT
Further company coverage: COFO.NS
(([email protected];))
July 24 (Reuters) - Coforge Ltd COFO.NS:
COFORGE- SECURES $230 MILLION PLUS FIVE-YEAR CONTRACT WITH A EUROPEAN CLIENT
Further company coverage: COFO.NS
(([email protected];))
** Shares of India's Coforge COFO.NS rise 2.03% to 1,494.5 rupees
** IT services firm outlined plans to double revenue to $5 billion by FY30 at its investor day
ACQUISITIONS AND EXECUTION KEY
** Jefferies ("buy", TP: 1,860 rupees) says Coforge's AI-native delivery model and platform-led offerings position it to win larger, outcome-based deals and sustain profitable growth
** HSBC ("buy", TP: 1,710 rupees) says co may need another acquisition worth more than $500 million by FY28 to achieve its FY30 revenue target, flags integration risks from successive deals
** Emkay ("buy", TP: 1,550 rupees) says about $700 million of co's targeted FY30 revenue expected to come from future acquisitions, while growth momentum expected to pick up from Q2 FY27
** Nomura ("buy", TP: 2,100 rupees) says AI is expanding addressable market for outsourced IT services and could help co nearly double revenue by FY30 through account mining, ecosystem partnerships
(Reporting by Surbhi Misra in Bengaluru)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
** Shares of India's Coforge COFO.NS rise 2.03% to 1,494.5 rupees
** IT services firm outlined plans to double revenue to $5 billion by FY30 at its investor day
ACQUISITIONS AND EXECUTION KEY
** Jefferies ("buy", TP: 1,860 rupees) says Coforge's AI-native delivery model and platform-led offerings position it to win larger, outcome-based deals and sustain profitable growth
** HSBC ("buy", TP: 1,710 rupees) says co may need another acquisition worth more than $500 million by FY28 to achieve its FY30 revenue target, flags integration risks from successive deals
** Emkay ("buy", TP: 1,550 rupees) says about $700 million of co's targeted FY30 revenue expected to come from future acquisitions, while growth momentum expected to pick up from Q2 FY27
** Nomura ("buy", TP: 2,100 rupees) says AI is expanding addressable market for outsourced IT services and could help co nearly double revenue by FY30 through account mining, ecosystem partnerships
(Reporting by Surbhi Misra in Bengaluru)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
June 16 (Reuters) - Coforge Ltd COFO.NS:
COFORGE - TARGETS $5 BILLION IN REVENUE BY FY30
Source text: [ID:]
Further company coverage: COFO.NS
(([email protected];;))
June 16 (Reuters) - Coforge Ltd COFO.NS:
COFORGE - TARGETS $5 BILLION IN REVENUE BY FY30
Source text: [ID:]
Further company coverage: COFO.NS
(([email protected];;))
Updates May 6 story to add responses from Coforge and Mphasis in paragraphs 4, 5 and 6
BENGALURU, May 7 (Reuters) - Indian mid-tier software firm Mphasis MBFL.NS has filed a lawsuit against rival Coforge COFO.NS in a U.S. court, claiming that the latter had hired its executives in violation of contract restrictions and gained access to confidential client information.
In a filing dated March 31, Mphasis sought injunctive relief to prevent Coforge from employing two of its former executives on Charles Schwab accounts - a mutual client of both companies - and from using Mphasis’ confidential data.
It also asked the court to bar former Vice President Brijesh Khergamker, who is named as a party in the matter, from working in Charles Schwab's outsourcing operations through Coforge for a year or accepting business from Mphasis customers as it violated his employment contract.
Coforge denied all allegations of wrongdoing and said it intends to vigorously defend itself and the employee in the matter, according to an emailed statement on Wednesday.
The company added that it is also evaluating potential counterclaims, and said that the client mentioned in the complaint has been an existing client for many years, with which it intends to grow its business relationship.
In response to a request for comment, Mphasis said on Thursday that its top priority is to protect its clients and that it would take the necessary action to enforce its rights when left with no other conciliatory alternatives.
Indian newspaper Mint first reported the development on Wednesday. Although dated March, the filing appeared in the government's legal database only last week.
Mphasis also sought compensatory damages and reimbursement of attorney fees and related costs, according to the filing, which did not provide further details.
Mphasis said that Coforge gained an "unfair competitive advantage" in the delivery of IT services by hiring at least four senior-level employees mentioned in the filing.
As demand for Indian IT services has slowed and competition intensified in recent years, companies have increasingly sued executives for violating their employment contracts.
Early last year, Infosys INFY.NS, India's second-largest IT firm, filed a counterclaim against rival Cognizant CTSH.O, saying that the U.S.-based company was engaging in anti-competitive practices and poaching key executives.
In 2023, Wipro sued former Chief Financial Officer Jatin Dalal after he joined Cognizant, claiming that the move violated the terms of his employment contract.
(Reporting by Sai Ishwarbharath B; Editing by Sonia Cheema)
(([email protected];))
Updates May 6 story to add responses from Coforge and Mphasis in paragraphs 4, 5 and 6
BENGALURU, May 7 (Reuters) - Indian mid-tier software firm Mphasis MBFL.NS has filed a lawsuit against rival Coforge COFO.NS in a U.S. court, claiming that the latter had hired its executives in violation of contract restrictions and gained access to confidential client information.
In a filing dated March 31, Mphasis sought injunctive relief to prevent Coforge from employing two of its former executives on Charles Schwab accounts - a mutual client of both companies - and from using Mphasis’ confidential data.
It also asked the court to bar former Vice President Brijesh Khergamker, who is named as a party in the matter, from working in Charles Schwab's outsourcing operations through Coforge for a year or accepting business from Mphasis customers as it violated his employment contract.
Coforge denied all allegations of wrongdoing and said it intends to vigorously defend itself and the employee in the matter, according to an emailed statement on Wednesday.
The company added that it is also evaluating potential counterclaims, and said that the client mentioned in the complaint has been an existing client for many years, with which it intends to grow its business relationship.
In response to a request for comment, Mphasis said on Thursday that its top priority is to protect its clients and that it would take the necessary action to enforce its rights when left with no other conciliatory alternatives.
Indian newspaper Mint first reported the development on Wednesday. Although dated March, the filing appeared in the government's legal database only last week.
Mphasis also sought compensatory damages and reimbursement of attorney fees and related costs, according to the filing, which did not provide further details.
Mphasis said that Coforge gained an "unfair competitive advantage" in the delivery of IT services by hiring at least four senior-level employees mentioned in the filing.
As demand for Indian IT services has slowed and competition intensified in recent years, companies have increasingly sued executives for violating their employment contracts.
Early last year, Infosys INFY.NS, India's second-largest IT firm, filed a counterclaim against rival Cognizant CTSH.O, saying that the U.S.-based company was engaging in anti-competitive practices and poaching key executives.
In 2023, Wipro sued former Chief Financial Officer Jatin Dalal after he joined Cognizant, claiming that the move violated the terms of his employment contract.
(Reporting by Sai Ishwarbharath B; Editing by Sonia Cheema)
(([email protected];))
Recasts with closing levels
BENGALURU, May 6 (Reuters) - India's Coforge COFO.NS stock added more than $500 million in market capitalisation on Wednesday, closing 9.5% higher at 1,280 rupees, after the mid-tier IT firm forecast robust earnings and its margin beat surprised analysts.
Coforge's upbeat fiscal 2027 earnings outlook, supported by strong deal wins, order-book visibility and an improvement in operating margins, sharply contrasted the outlooks of larger peers Infosys INFY.NS and HCLTech HCLT.NS, which forecast subdued growth from AI-led spending caution and geopolitical tensions.
NSE data showed that the stock's put-call ratio - a measure of bearish bets relative to bullish ones - was at 0.53, signalling bullish positioning, with call volumes running at nearly twice the pace of puts.
Meanwhile, data also showed options traders unwound their bearish positions, with the 1300 contract being the most active for the day - suggesting the market is betting that Coforge's rally may still have room to run.
The stock logged its best session in more than a year and led gains on the Nifty IT index .NIFTYIT, which rose 0.5%. It was the stock's busiest day since 2023, with about 27 million shares changing hands - almost nine times its 30-day average.
Brokerage Jefferies said the results were a "clear positive surprise", citing a 230-basis-point sequential jump in earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to 16.6%, driven by lower costs and operating leverage.
"Coforge remains our preferred pick in the sector," said brokerage Jefferies. It hiked its price target to 1,860 rupees from 1,620 rupees and reiterated a "buy" rating, joining Prabhudas Lilladher, which also hiked PT to 2,020 rupees from 1,870.
Coforge on Tuesday forecast EBITDA growth of more than 20.5% on a consolidated basis in FY27 and announced that its March-quarter profit more than doubled from a year ago.
Strong deal wins and order-book growth provide visibility for double-digit organic growth, the firm said, even as it trimmed its lower-margin India business.
For the year, Coforge is down 23%, trailing the sub-index's 22% decline. The company also trades at a slight premium, with its 12-month forward price-to-earnings ratio at 21.47, compared with the industry average of 18.42, as per LSEG data.
($1 = 95.0750 Indian rupees)
Coforge forecast robust earnings, sending shares surging nearly 10% https://reut.rs/4tYrNCt
(Reporting by Abhinav Parmar, Kashish Tandon and Pranav Kashyap in Bengaluru; Editing by Rashmi Aich, Harikrishnan Nair and Janane Venkatraman)
(([email protected];))
Recasts with closing levels
BENGALURU, May 6 (Reuters) - India's Coforge COFO.NS stock added more than $500 million in market capitalisation on Wednesday, closing 9.5% higher at 1,280 rupees, after the mid-tier IT firm forecast robust earnings and its margin beat surprised analysts.
Coforge's upbeat fiscal 2027 earnings outlook, supported by strong deal wins, order-book visibility and an improvement in operating margins, sharply contrasted the outlooks of larger peers Infosys INFY.NS and HCLTech HCLT.NS, which forecast subdued growth from AI-led spending caution and geopolitical tensions.
NSE data showed that the stock's put-call ratio - a measure of bearish bets relative to bullish ones - was at 0.53, signalling bullish positioning, with call volumes running at nearly twice the pace of puts.
Meanwhile, data also showed options traders unwound their bearish positions, with the 1300 contract being the most active for the day - suggesting the market is betting that Coforge's rally may still have room to run.
The stock logged its best session in more than a year and led gains on the Nifty IT index .NIFTYIT, which rose 0.5%. It was the stock's busiest day since 2023, with about 27 million shares changing hands - almost nine times its 30-day average.
Brokerage Jefferies said the results were a "clear positive surprise", citing a 230-basis-point sequential jump in earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to 16.6%, driven by lower costs and operating leverage.
"Coforge remains our preferred pick in the sector," said brokerage Jefferies. It hiked its price target to 1,860 rupees from 1,620 rupees and reiterated a "buy" rating, joining Prabhudas Lilladher, which also hiked PT to 2,020 rupees from 1,870.
Coforge on Tuesday forecast EBITDA growth of more than 20.5% on a consolidated basis in FY27 and announced that its March-quarter profit more than doubled from a year ago.
Strong deal wins and order-book growth provide visibility for double-digit organic growth, the firm said, even as it trimmed its lower-margin India business.
For the year, Coforge is down 23%, trailing the sub-index's 22% decline. The company also trades at a slight premium, with its 12-month forward price-to-earnings ratio at 21.47, compared with the industry average of 18.42, as per LSEG data.
($1 = 95.0750 Indian rupees)
Coforge forecast robust earnings, sending shares surging nearly 10% https://reut.rs/4tYrNCt
(Reporting by Abhinav Parmar, Kashish Tandon and Pranav Kashyap in Bengaluru; Editing by Rashmi Aich, Harikrishnan Nair and Janane Venkatraman)
(([email protected];))
May 5 (Reuters) - Coforge Ltd COFO.NS:
COFORGE Q4 CONSOL NET PROFIT 6.12 BILLION RUPEES
COFORGE Q4 CONSOL REVENUE FROM OPERATIONS 44.50 BILLION RUPEES
Further company coverage: COFO.NS
(([email protected];))
May 5 (Reuters) - Coforge Ltd COFO.NS:
COFORGE Q4 CONSOL NET PROFIT 6.12 BILLION RUPEES
COFORGE Q4 CONSOL REVENUE FROM OPERATIONS 44.50 BILLION RUPEES
Further company coverage: COFO.NS
(([email protected];))
April 13 (Reuters) - Coforge Ltd COFO.NS:
COFORGE - SECURES ALL REGULATORY AND STATUTORY APPROVALS FOR ENCORA ACQUISITION
Source text: ID:nBw6l2gLCa
Further company coverage: COFO.NS
(([email protected];))
April 13 (Reuters) - Coforge Ltd COFO.NS:
COFORGE - SECURES ALL REGULATORY AND STATUTORY APPROVALS FOR ENCORA ACQUISITION
Source text: ID:nBw6l2gLCa
Further company coverage: COFO.NS
(([email protected];))
April 2 (Reuters) - Coforge Ltd COFO.NS:
COFORGE AND SOLSTICE INNOVATIONS PARTNER FOR P&C INSURANCE MODERNIZATION THROUGH AGENTIC AI
Further company coverage: COFO.NS
(([email protected];))
April 2 (Reuters) - Coforge Ltd COFO.NS:
COFORGE AND SOLSTICE INNOVATIONS PARTNER FOR P&C INSURANCE MODERNIZATION THROUGH AGENTIC AI
Further company coverage: COFO.NS
(([email protected];))
** IT services provider receives RBI approval for an overseas investment exceeding $1 billion to complete its $2.35 billion acquisition of US AI firm Encora
** Shares of Coforge COFO.NS rise 3.8% to 1,157.10 rupees
** Deal was initially announced in December 2025, subject to regulatory approval
** COFO funded the $1.89 billion equity value of the deal through the issue of preference shares at 1,815.91 rupees apiece, while Encora shareholders will receive a 20% stake in the combined firm
** Encora is backed by Advent International and Warburg Pincus. Co offers AI solutions for product, cloud and data engineering
** Analysts have a "buy" rating on avg for COFO; median PT is 1,925 rupees - data compiled by LSEG
** YTD, COFO dowm ~30%
(Reporting by Urvi Dugar in Bengaluru)
(([email protected];))
** IT services provider receives RBI approval for an overseas investment exceeding $1 billion to complete its $2.35 billion acquisition of US AI firm Encora
** Shares of Coforge COFO.NS rise 3.8% to 1,157.10 rupees
** Deal was initially announced in December 2025, subject to regulatory approval
** COFO funded the $1.89 billion equity value of the deal through the issue of preference shares at 1,815.91 rupees apiece, while Encora shareholders will receive a 20% stake in the combined firm
** Encora is backed by Advent International and Warburg Pincus. Co offers AI solutions for product, cloud and data engineering
** Analysts have a "buy" rating on avg for COFO; median PT is 1,925 rupees - data compiled by LSEG
** YTD, COFO dowm ~30%
(Reporting by Urvi Dugar in Bengaluru)
(([email protected];))
** Coforge COFO.NS rises ~3.7% to 1150.7 rupees
** CLSA reiterates "high-conviction outperform" rating after hosting co's management to discuss AI narrative in IT sector
** PT of 2,278 rupees implies 105% potential upside
** CLSA says co will be "clear winner in the upcoming AI cycle"
** Adds co's Encora acquisition will have revenue and cost synergies, bolster co's data, cloud, AI-led engineering capabilities
** Stock rated "buy" on avg; median PT is 1,985 rupees, per data compiled by LSEG
** YTD, COFO down 31% vs IT index's .NIFTYIT 21% drop
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
** Coforge COFO.NS rises ~3.7% to 1150.7 rupees
** CLSA reiterates "high-conviction outperform" rating after hosting co's management to discuss AI narrative in IT sector
** PT of 2,278 rupees implies 105% potential upside
** CLSA says co will be "clear winner in the upcoming AI cycle"
** Adds co's Encora acquisition will have revenue and cost synergies, bolster co's data, cloud, AI-led engineering capabilities
** Stock rated "buy" on avg; median PT is 1,985 rupees, per data compiled by LSEG
** YTD, COFO down 31% vs IT index's .NIFTYIT 21% drop
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
** UBS initiates coverage on IT firm Coforge COFO.NS with "neutral" rating, PT of 1,240 rupees
** Brokerage highlights 15% annual revenue CAGR over FY26-FY28, driven by organic growth, acquisitions
** However, flags concerns over acquisitive strategy, weaker GenAI positioning vs peers
** Recent Encora acquisition at stretched valuations will weigh on shares despite adding capabilities, geographic diversification - UBS
**Notes AI positioning ahead of large-caps but trails midcap peers like Persistent Systems PERS.NS, LTIMindtree LTIM.NS due to limited exposure to AI-intensive verticals (consumer, hi-tech), lower Americas presence
** Stock rated "Buy" on average by 32 analysts; median PT 1,985 rupees - data compiled by LSEG
** COFO down 0.4% to 1085 rupees; YTD, down 34.5%
(Reporting by Mridula Kumar in Bengaluru)
(([email protected];))
** UBS initiates coverage on IT firm Coforge COFO.NS with "neutral" rating, PT of 1,240 rupees
** Brokerage highlights 15% annual revenue CAGR over FY26-FY28, driven by organic growth, acquisitions
** However, flags concerns over acquisitive strategy, weaker GenAI positioning vs peers
** Recent Encora acquisition at stretched valuations will weigh on shares despite adding capabilities, geographic diversification - UBS
**Notes AI positioning ahead of large-caps but trails midcap peers like Persistent Systems PERS.NS, LTIMindtree LTIM.NS due to limited exposure to AI-intensive verticals (consumer, hi-tech), lower Americas presence
** Stock rated "Buy" on average by 32 analysts; median PT 1,985 rupees - data compiled by LSEG
** COFO down 0.4% to 1085 rupees; YTD, down 34.5%
(Reporting by Mridula Kumar in Bengaluru)
(([email protected];))
Feb 25 (Reuters) - Coforge Ltd COFO.NS:
SECURES $158M FIVE-YEAR CONTRACT WITH UK BASED CLIENT
Source text: ID:nNSEb7WLTh
Further company coverage: COFO.NS
(([email protected];;))
Feb 25 (Reuters) - Coforge Ltd COFO.NS:
SECURES $158M FIVE-YEAR CONTRACT WITH UK BASED CLIENT
Source text: ID:nNSEb7WLTh
Further company coverage: COFO.NS
(([email protected];;))
** The recent correction in India's information technology sector presents an added buying opportunity, according to brokerage CLSA
** Indian IT stocks .NIFTYIT lost 12.5% in 2025, emerging as the biggest drag in benchmark indexes, which underperformed Asian and emerging-market peers
** The decline was triggered by record foreign outflows of $8.5 billion from the sector, muted corporate earnings and persistent weakness in U.S. client spending, the sector's primary revenue engine
** The pressure has intensified in 2026, with the IT index down 7% so far, amid rising concerns that advances in artificial intelligence, including new tools from U.S.-based Anthropic, could sharply compress software development cycles
** CLSA, however, downplays near-term disruption risks, arguing that enterprise technology ecosystems often take years to meaningfully adapt to new waves of innovation
** While the sector has weathered multiple disruptive narratives in the past, earnings have rarely suffered lasting damage, according to the brokerage
** CLSA favours mid-tier players Persistent Systems PERS.NS and Coforge COFO.NS, saying their agility positions them to capture emerging profit pools in the next technology cycle
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
** The recent correction in India's information technology sector presents an added buying opportunity, according to brokerage CLSA
** Indian IT stocks .NIFTYIT lost 12.5% in 2025, emerging as the biggest drag in benchmark indexes, which underperformed Asian and emerging-market peers
** The decline was triggered by record foreign outflows of $8.5 billion from the sector, muted corporate earnings and persistent weakness in U.S. client spending, the sector's primary revenue engine
** The pressure has intensified in 2026, with the IT index down 7% so far, amid rising concerns that advances in artificial intelligence, including new tools from U.S.-based Anthropic, could sharply compress software development cycles
** CLSA, however, downplays near-term disruption risks, arguing that enterprise technology ecosystems often take years to meaningfully adapt to new waves of innovation
** While the sector has weathered multiple disruptive narratives in the past, earnings have rarely suffered lasting damage, according to the brokerage
** CLSA favours mid-tier players Persistent Systems PERS.NS and Coforge COFO.NS, saying their agility positions them to capture emerging profit pools in the next technology cycle
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
Indian IT stocks lose $22.5 billion in a week
IT stocks set for worst week in 4 months
Drop in stocks is a knee-jerk reaction, analysts say
Recasts throughout; adds analyst and fund manager comments
By Kashish Tandon and Vivek Kumar M
BENGALURU, Feb 6 (Reuters) - Indian software exporters plunged another 2% on Friday and looked set to end a tumultuous week that has seen $22.5 billion in market value losses on growing fears that new AI tools could severely disrupt the country's IT outsourcing industry.
The selloff was part of a global rout in software and data services stocks, triggered by the launch of an AI tool from Anthropic that automates tasks across legal, sales, marketing and data analysis functions.
The IT index .NIFTYIT was the worst-performing sector on the day and was down about 7% for the week - its steepest weekly drop in more than four months.
Analysts said fast-advancing AI tools could upend India's $283‑billion IT sector, which is heavily reliant on a labour‑intensive delivery model.
"The market fears (the AI tools) may replace IT services that are currently outsourced. What the real impact will be remains to be seen," said VK Vijayakumar, chief investment strategist at Geojit Investments.
The selloff comes as some IT firms have said they are gaining from clients showing more willingness to fund AI projects despite being careful about discretionary spending amid global economic uncertainty.
Top IT firms TCS TCS.NS, Infosys INFY.NS and Wipro WIPR.NS have secured AI-led deals and are rolling out domain-specific platforms across verticals such as BFSI and healthcare as clients accelerate adoption.
Still, the IT index has now shed nearly 18% since the start of 2025, including Wednesday's selloff, when it logged its biggest single‑day fall in six years. Foreign investors sold a record $8.5 billion worth of Indian IT stocks in 2025.
KNEE-JERK REACTION, SAY SOME ANALYSTS
Industry watchers were divided on their assessment of the situation.
Centrum Broking's Piyush Pandey called the selloff a "knee‑jerk" reaction.
"AI tools have been in the works and this is how the industry is now shaping up. However, they are not expected to materially disrupt the industry as of now," he said.
Others said the sector should brace for more pain down the road.
"Surely, there would be other tools in the making that will automate tasks and increase the competitive intensity in the IT industry," said Arun Malhotra, fund manager at CapGrow Capital.
Companies will likely take measures to address these challenges, including acquisitions, he added, but "we don't foresee the glory days of the IT sector, that has been missing for the last couple of years, returning soon."
All 10 constituents of the IT sub-index traded lower on Friday. Coforge COFO.NS was down 3.4%, while TCS and Infosys INFY.NS slipped nearly 2.1% and 1.4%, respectively.
The benchmark Nifty 50 .NSEI was down 0.3%.
($1 = 90.2350 Indian rupees)
India's Nifty IT index set for biggest weekly drop in about four months https://reut.rs/4bF8bxd
(Reporting by Kashish Tandon and Vivek Kumar M in Bengaluru; Editing by Dhanya Skariachan, Mrigank Dhaniwala and Sonia Cheema)
(([email protected]; 8800437922;))
Indian IT stocks lose $22.5 billion in a week
IT stocks set for worst week in 4 months
Drop in stocks is a knee-jerk reaction, analysts say
Recasts throughout; adds analyst and fund manager comments
By Kashish Tandon and Vivek Kumar M
BENGALURU, Feb 6 (Reuters) - Indian software exporters plunged another 2% on Friday and looked set to end a tumultuous week that has seen $22.5 billion in market value losses on growing fears that new AI tools could severely disrupt the country's IT outsourcing industry.
The selloff was part of a global rout in software and data services stocks, triggered by the launch of an AI tool from Anthropic that automates tasks across legal, sales, marketing and data analysis functions.
The IT index .NIFTYIT was the worst-performing sector on the day and was down about 7% for the week - its steepest weekly drop in more than four months.
Analysts said fast-advancing AI tools could upend India's $283‑billion IT sector, which is heavily reliant on a labour‑intensive delivery model.
"The market fears (the AI tools) may replace IT services that are currently outsourced. What the real impact will be remains to be seen," said VK Vijayakumar, chief investment strategist at Geojit Investments.
The selloff comes as some IT firms have said they are gaining from clients showing more willingness to fund AI projects despite being careful about discretionary spending amid global economic uncertainty.
Top IT firms TCS TCS.NS, Infosys INFY.NS and Wipro WIPR.NS have secured AI-led deals and are rolling out domain-specific platforms across verticals such as BFSI and healthcare as clients accelerate adoption.
Still, the IT index has now shed nearly 18% since the start of 2025, including Wednesday's selloff, when it logged its biggest single‑day fall in six years. Foreign investors sold a record $8.5 billion worth of Indian IT stocks in 2025.
KNEE-JERK REACTION, SAY SOME ANALYSTS
Industry watchers were divided on their assessment of the situation.
Centrum Broking's Piyush Pandey called the selloff a "knee‑jerk" reaction.
"AI tools have been in the works and this is how the industry is now shaping up. However, they are not expected to materially disrupt the industry as of now," he said.
Others said the sector should brace for more pain down the road.
"Surely, there would be other tools in the making that will automate tasks and increase the competitive intensity in the IT industry," said Arun Malhotra, fund manager at CapGrow Capital.
Companies will likely take measures to address these challenges, including acquisitions, he added, but "we don't foresee the glory days of the IT sector, that has been missing for the last couple of years, returning soon."
All 10 constituents of the IT sub-index traded lower on Friday. Coforge COFO.NS was down 3.4%, while TCS and Infosys INFY.NS slipped nearly 2.1% and 1.4%, respectively.
The benchmark Nifty 50 .NSEI was down 0.3%.
($1 = 90.2350 Indian rupees)
India's Nifty IT index set for biggest weekly drop in about four months https://reut.rs/4bF8bxd
(Reporting by Kashish Tandon and Vivek Kumar M in Bengaluru; Editing by Dhanya Skariachan, Mrigank Dhaniwala and Sonia Cheema)
(([email protected]; 8800437922;))
Jan 23 (Reuters) - Coforge Ltd COFO.NS:
NOT TO GO AHEAD WITH QIP
Further company coverage: COFO.NS
(([email protected];))
Jan 23 (Reuters) - Coforge Ltd COFO.NS:
NOT TO GO AHEAD WITH QIP
Further company coverage: COFO.NS
(([email protected];))
IT firms face muted quarter on seasonal, economic factors
Brokerages expect 4% revenue growth for tier-1 IT firms
Macro headwinds, cautious client spending impact IT industry
TCS to kickstart earnings season with likely 4.2% revenue growth
Infosys expected to post revenue growth of 8.1%
By Bharath Rajeswaran and Sai Ishwarbharath B
Jan 8 (Reuters) - India's information technology firms are expected to report another muted quarter, as tepid demand in the U.S. and holiday-period client shutdowns continue to weigh on tech spending, nine brokerages said ahead of earnings.
Brokerages expect the top six IT firms by revenue to post about 4% year-on-year revenue growth and a 5% rise in profit for the December quarter on average, reflecting prolonged demand softness, compared with 6.5% revenue growth in the September quarter.
Indian software exporters last reported double-digit revenue growth in the March quarter of 2023, when digital transformation, cloud adoption and remote-work demand surged in the post-pandemic period.
The broader $283 billion Indian IT industry continues to face macro headwinds, including uncertainty over U.S. tariffs, challenges from proposed $100,000 visa fees, and subdued client spending on concerns about growth in the world's largest economy.
India's IT companies earn a significant share of their revenue from the United States, making the world's largest economy crucial for the sector.
Sector bellwether Accenture's ACN.N recent earnings beat Wall Street expectations on AI-led demand, though its unchanged growth outlook underscores the cautious near-term environment.
Although India has no pure-play AI firms, IT companies are beginning to shape AI strategies through acquisitions and partnerships. Brokerages expect AI momentum to build over the next six months and demand to pick up into 2026.
"Clients remain cautious about committing incremental spending to large programs amid macro and tariff uncertainty and a new tech cycle," said Abhishek Pathak, research analyst at Motilal Oswal Financial Services.
U.S. tariff uncertainty, visa worries and weak spending drove record foreign outflows of $8.5 billion from IT stocks in 2025, nearly half of total foreign exits from Indian equities.
The Nifty IT index .NIFTYIT fell 12.6% in 2025, making it the worst-performing sector as Indian markets lagged Asian and emerging-market peers.
Tata Consultancy Services TCS.NS, the country's largest IT firm, will kick off the earnings season on January 12. Its revenue is expected to rise about 4.2% year-on-year, slower than the 5.6% growth reported last year.
Infosys INFY.NS and HCLTech HCLT.NS are forecast to report year-on-year revenue growth of about 8.1% and 4.6%, respectively, compared with 7.6% and 5.1% in the year-ago period.
Most brokerages do not expect HCLTech to upgrade its fiscal 2026 annual revenue forecast of 2%–3%, or Infosys to raise its forecast of 3%–5%.
Earnings across domestic equities are expected to improve in the December quarter on tax cuts, policy easing, stable growth and benign inflation, even as the period remains structurally weak for IT firms.
Fewer working days due to global client holidays weigh on billing and revenue, while brokerages flag margin pressure from furloughs and wage hikes at firms such as TCS and Wipro WIPR.NS.
However, resilience in the BFSI (banking, financial services and insurance) segment, deal ramp-ups, early signs of artificial intelligence strategy formation and rupee depreciation could offer support by mid-2026, six brokerages said.
Brokerages' Q3 View: What to Expect from Top Indian IT Firms https://reut.rs/3LvCNXg
Brokerages' December Quarter Profit Growth Expectations for Indian IT Firms https://reut.rs/4509gf3
Brokerages' December Quarter Revenue Growth Expectations for Indian IT Firms https://reut.rs/4qCsxv9
IT companies underperform the benchmark Nifty 50 since the start of 2025 https://reut.rs/3LxuIBq
(Reporting by Bharath Rajeswaran and Sai Ishwarbharath B in Bengaluru; Editing by Sherry Jacob-Phillips)
(([email protected]; +91 9769003463;))
IT firms face muted quarter on seasonal, economic factors
Brokerages expect 4% revenue growth for tier-1 IT firms
Macro headwinds, cautious client spending impact IT industry
TCS to kickstart earnings season with likely 4.2% revenue growth
Infosys expected to post revenue growth of 8.1%
By Bharath Rajeswaran and Sai Ishwarbharath B
Jan 8 (Reuters) - India's information technology firms are expected to report another muted quarter, as tepid demand in the U.S. and holiday-period client shutdowns continue to weigh on tech spending, nine brokerages said ahead of earnings.
Brokerages expect the top six IT firms by revenue to post about 4% year-on-year revenue growth and a 5% rise in profit for the December quarter on average, reflecting prolonged demand softness, compared with 6.5% revenue growth in the September quarter.
Indian software exporters last reported double-digit revenue growth in the March quarter of 2023, when digital transformation, cloud adoption and remote-work demand surged in the post-pandemic period.
The broader $283 billion Indian IT industry continues to face macro headwinds, including uncertainty over U.S. tariffs, challenges from proposed $100,000 visa fees, and subdued client spending on concerns about growth in the world's largest economy.
India's IT companies earn a significant share of their revenue from the United States, making the world's largest economy crucial for the sector.
Sector bellwether Accenture's ACN.N recent earnings beat Wall Street expectations on AI-led demand, though its unchanged growth outlook underscores the cautious near-term environment.
Although India has no pure-play AI firms, IT companies are beginning to shape AI strategies through acquisitions and partnerships. Brokerages expect AI momentum to build over the next six months and demand to pick up into 2026.
"Clients remain cautious about committing incremental spending to large programs amid macro and tariff uncertainty and a new tech cycle," said Abhishek Pathak, research analyst at Motilal Oswal Financial Services.
U.S. tariff uncertainty, visa worries and weak spending drove record foreign outflows of $8.5 billion from IT stocks in 2025, nearly half of total foreign exits from Indian equities.
The Nifty IT index .NIFTYIT fell 12.6% in 2025, making it the worst-performing sector as Indian markets lagged Asian and emerging-market peers.
Tata Consultancy Services TCS.NS, the country's largest IT firm, will kick off the earnings season on January 12. Its revenue is expected to rise about 4.2% year-on-year, slower than the 5.6% growth reported last year.
Infosys INFY.NS and HCLTech HCLT.NS are forecast to report year-on-year revenue growth of about 8.1% and 4.6%, respectively, compared with 7.6% and 5.1% in the year-ago period.
Most brokerages do not expect HCLTech to upgrade its fiscal 2026 annual revenue forecast of 2%–3%, or Infosys to raise its forecast of 3%–5%.
Earnings across domestic equities are expected to improve in the December quarter on tax cuts, policy easing, stable growth and benign inflation, even as the period remains structurally weak for IT firms.
Fewer working days due to global client holidays weigh on billing and revenue, while brokerages flag margin pressure from furloughs and wage hikes at firms such as TCS and Wipro WIPR.NS.
However, resilience in the BFSI (banking, financial services and insurance) segment, deal ramp-ups, early signs of artificial intelligence strategy formation and rupee depreciation could offer support by mid-2026, six brokerages said.
Brokerages' Q3 View: What to Expect from Top Indian IT Firms https://reut.rs/3LvCNXg
Brokerages' December Quarter Profit Growth Expectations for Indian IT Firms https://reut.rs/4509gf3
Brokerages' December Quarter Revenue Growth Expectations for Indian IT Firms https://reut.rs/4qCsxv9
IT companies underperform the benchmark Nifty 50 since the start of 2025 https://reut.rs/3LxuIBq
(Reporting by Bharath Rajeswaran and Sai Ishwarbharath B in Bengaluru; Editing by Sherry Jacob-Phillips)
(([email protected]; +91 9769003463;))
Corrects paragraph 6 in Dec 26 story to say preference shares will be issued a premium of 8.5%, not 14.5%, to Friday's close
Coforge to enhance AI capabilities with Encora deal
Encora shareholders to receive 20% stake in Coforge
Encora worth $1.89 billion in equity
Deal to close in four-to-six months
By Nandan Mandayam and Sai Ishwarbharath B
Dec 26 (Reuters) - Indian IT services provider Coforge said on Friday it would acquire artificial intelligence firm Encora at an enterprise value of $2.35 billion to boost its in-house AI capabilities and expand its presence in the U.S. and Latin America.
Indian IT firms are exploring funding projects related to AI technology, potentially opening up a significant new revenue stream as the buzz around the field grows.
Encora, backed by Advent International and Warburg Pincus, offers AI solutions for product, cloud and data engineering, with Coforge estimating $2 billion in annual revenues by March 2027.
The combined entity is expected to operate at a margin of 14% before interest and taxes, with the acquisition anticipated to be EPS accretive by fiscal 2027.
The revenue coming in (from the merger) would help Coforge leapfrog Persistent, Mphasis and Hexaware to become India's seventh largest IT firm, said Pareekh Jain, founder of tech advisory firm EIIR Trend.
Coforge will fund the $1.89 billion equity value of the deal through the issue of preference shares at 1,815.91 rupees apiece, an 8.5% premium to Friday's close, while Encora shareholders will receive a 20% stake in the combined firm.
It plans to pay off the California-based company's debt through a fundraising of up to $550 million, either through a bridge loan or a qualified institutional placement of Coforge shares.
The Indian firm, which derives 58% of its revenue from North and South America, will strengthen its presence in the West and Midwest U.S. through the acquisition, and gain access to Encora's workforce of approximately 3,100 employees in Latin America.
The company clocked revenues of 120.51 billion rupees ($1.34 billion) in fiscal 2025, up 32% from the previous year, while Encora registered a turnover of $516 million.
Coforge said the deal is expected to close in four to six months, and BDA Partners served as the investment banker for the transaction.
($1 = 89.9060 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema and Vijay Kishore)
(([email protected]; Mobile: +91 9591011727;))
Corrects paragraph 6 in Dec 26 story to say preference shares will be issued a premium of 8.5%, not 14.5%, to Friday's close
Coforge to enhance AI capabilities with Encora deal
Encora shareholders to receive 20% stake in Coforge
Encora worth $1.89 billion in equity
Deal to close in four-to-six months
By Nandan Mandayam and Sai Ishwarbharath B
Dec 26 (Reuters) - Indian IT services provider Coforge said on Friday it would acquire artificial intelligence firm Encora at an enterprise value of $2.35 billion to boost its in-house AI capabilities and expand its presence in the U.S. and Latin America.
Indian IT firms are exploring funding projects related to AI technology, potentially opening up a significant new revenue stream as the buzz around the field grows.
Encora, backed by Advent International and Warburg Pincus, offers AI solutions for product, cloud and data engineering, with Coforge estimating $2 billion in annual revenues by March 2027.
The combined entity is expected to operate at a margin of 14% before interest and taxes, with the acquisition anticipated to be EPS accretive by fiscal 2027.
The revenue coming in (from the merger) would help Coforge leapfrog Persistent, Mphasis and Hexaware to become India's seventh largest IT firm, said Pareekh Jain, founder of tech advisory firm EIIR Trend.
Coforge will fund the $1.89 billion equity value of the deal through the issue of preference shares at 1,815.91 rupees apiece, an 8.5% premium to Friday's close, while Encora shareholders will receive a 20% stake in the combined firm.
It plans to pay off the California-based company's debt through a fundraising of up to $550 million, either through a bridge loan or a qualified institutional placement of Coforge shares.
The Indian firm, which derives 58% of its revenue from North and South America, will strengthen its presence in the West and Midwest U.S. through the acquisition, and gain access to Encora's workforce of approximately 3,100 employees in Latin America.
The company clocked revenues of 120.51 billion rupees ($1.34 billion) in fiscal 2025, up 32% from the previous year, while Encora registered a turnover of $516 million.
Coforge said the deal is expected to close in four to six months, and BDA Partners served as the investment banker for the transaction.
($1 = 89.9060 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema and Vijay Kishore)
(([email protected]; Mobile: +91 9591011727;))
Dec 24 (Reuters) - Coforge Ltd COFO.NS:
LAUNCHES EVOLVEOPS.AI IT OPERATIONS PLATFORM
Source text: ID:nBSE8TsT9V
Further company coverage: COFO.NS
(([email protected];;))
Dec 24 (Reuters) - Coforge Ltd COFO.NS:
LAUNCHES EVOLVEOPS.AI IT OPERATIONS PLATFORM
Source text: ID:nBSE8TsT9V
Further company coverage: COFO.NS
(([email protected];;))
Nov 24 (Reuters) - Coforge Ltd COFO.NS:
COFORGE - LAUNCHES FORGE-X ENGINEERING AND DELIVERY PLATFORM
Source text: ID:nNSE2pBpkg
Further company coverage: COFO.NS
(([email protected];))
Nov 24 (Reuters) - Coforge Ltd COFO.NS:
COFORGE - LAUNCHES FORGE-X ENGINEERING AND DELIVERY PLATFORM
Source text: ID:nNSE2pBpkg
Further company coverage: COFO.NS
(([email protected];))
** Shares of Coforge COFO.NS rise 1% to 1,568 rupees
** CLSA initiates coverage with "outperform" rating, sets PT at 2,346 rupees, implying 51.1% upside from last close
** Broker cites stellar execution and a solutioning-led sales approach under CEO Sudhir Singh
** Expects revenue/EBIT/EPS CAGRs of 15%/16%/22% CAGR over FY26–FY28
** Highlights co's focus on large clients, verticals, tech partners, and acquisitions as key growth drivers
** COFO rated "buy" by 32 analysts on average; median target price is 1,960 rupees – data compiled by LSEG
** Stock down 18.9% YTD
(Reporting by Rudra Pratap Singh in Bengaluru)
** Shares of Coforge COFO.NS rise 1% to 1,568 rupees
** CLSA initiates coverage with "outperform" rating, sets PT at 2,346 rupees, implying 51.1% upside from last close
** Broker cites stellar execution and a solutioning-led sales approach under CEO Sudhir Singh
** Expects revenue/EBIT/EPS CAGRs of 15%/16%/22% CAGR over FY26–FY28
** Highlights co's focus on large clients, verticals, tech partners, and acquisitions as key growth drivers
** COFO rated "buy" by 32 analysts on average; median target price is 1,960 rupees – data compiled by LSEG
** Stock down 18.9% YTD
(Reporting by Rudra Pratap Singh in Bengaluru)
Sept 22 (Reuters) - Indian information technology stocks .NIFTYIT fell 3.6% on Monday after U.S. President Donald Trump imposed a $100,000 fee on new H-1B visa applications, threatening the sector's long-standing model of rotating skilled workers into the U.S.
The index was the top sectoral loser, dragging the benchmark Nifty 50 .NSEI 0.3% lower.
All 10 stocks on the index traded lower, with losses led by Tech Mahindra's TEML.NS 5.8% slump.
(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman)
(([email protected]; 8800437922;))
Sept 22 (Reuters) - Indian information technology stocks .NIFTYIT fell 3.6% on Monday after U.S. President Donald Trump imposed a $100,000 fee on new H-1B visa applications, threatening the sector's long-standing model of rotating skilled workers into the U.S.
The index was the top sectoral loser, dragging the benchmark Nifty 50 .NSEI 0.3% lower.
All 10 stocks on the index traded lower, with losses led by Tech Mahindra's TEML.NS 5.8% slump.
(Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman)
(([email protected]; 8800437922;))
** India's Coforge COFO.NS drops 4.1% to 1,633.30 rupees, lowest since May 12
** IT firm misses out on being added to MSCI Global Standard index
** MSCI adds four Indian stocks, including Vishal Mega Mart VSSL.NS and Swiggy SWIG.NS, to its flagship MSCI Global Standard index .MIEF00000PUS, setting them up for potential total inflows of $1 billion
** COFO was expected to be added to MSCI index, according to IIFL
** Stock extends YTD losses to 15.4%
(Reporting by Kashish Tandon in Bengaluru)
** India's Coforge COFO.NS drops 4.1% to 1,633.30 rupees, lowest since May 12
** IT firm misses out on being added to MSCI Global Standard index
** MSCI adds four Indian stocks, including Vishal Mega Mart VSSL.NS and Swiggy SWIG.NS, to its flagship MSCI Global Standard index .MIEF00000PUS, setting them up for potential total inflows of $1 billion
** COFO was expected to be added to MSCI index, according to IIFL
** Stock extends YTD losses to 15.4%
(Reporting by Kashish Tandon in Bengaluru)
** India's Coforge COFO.NS falls 8.2% to 1,698 rupees, set for worst day since May 2024
** Stock second biggest pct loser on midcap index .NIFMDCP100, which is trading 0.6% lower
** Mid-cap IT services co reported higher quarterly profit and revenue but analysts say margins were a miss due to softness in key banking and financial services vertical
** Growth was largely driven by the Americas, however, BFSI growth was relatively weak, resulting in EBIT margins below consensus, Morgan Stanley analysts say
** Peer Persistent Systems PERS.NS reported higher Q1 profit but analysts flag macro headwinds could hit growth
** Avg rating on COFO at "buy"; median PT is 1,810 rupees - data compiled by LSEG
** Stock extends YTD decline to 12% vs midcap index's 3.1% climb
(Reporting by Kashish Tandon in Bengaluru)
** India's Coforge COFO.NS falls 8.2% to 1,698 rupees, set for worst day since May 2024
** Stock second biggest pct loser on midcap index .NIFMDCP100, which is trading 0.6% lower
** Mid-cap IT services co reported higher quarterly profit and revenue but analysts say margins were a miss due to softness in key banking and financial services vertical
** Growth was largely driven by the Americas, however, BFSI growth was relatively weak, resulting in EBIT margins below consensus, Morgan Stanley analysts say
** Peer Persistent Systems PERS.NS reported higher Q1 profit but analysts flag macro headwinds could hit growth
** Avg rating on COFO at "buy"; median PT is 1,810 rupees - data compiled by LSEG
** Stock extends YTD decline to 12% vs midcap index's 3.1% climb
(Reporting by Kashish Tandon in Bengaluru)
** Motilal Oswal says India's Coforge's COFO.NS executable order book sets the floor for a "solid" fiscal 2026
** COFO's revenue growth CAGR of 17% between FY17 to FY25 is highest among peers and boosted by its BFSI and transportation verticals - Motilal
** Adds, management's commitment to achieve $2 bln revenue by FY27, led by digital transformation-led demand, ensures high revenue visibility for COFO over next 12-18 months
** Stock trading 1.2% higher on the day
** Brokerage reiterates "Buy" rating with PT of 2,200 rupees
** COFO among five stocks on 10-member IT index .NIFTYIT rated "Buy" - data compiled by LSEG
** YTD, COFO down 2.6% vs IT index's 10% decline
(Reporting by Kashish Tandon in Bengaluru)
** Motilal Oswal says India's Coforge's COFO.NS executable order book sets the floor for a "solid" fiscal 2026
** COFO's revenue growth CAGR of 17% between FY17 to FY25 is highest among peers and boosted by its BFSI and transportation verticals - Motilal
** Adds, management's commitment to achieve $2 bln revenue by FY27, led by digital transformation-led demand, ensures high revenue visibility for COFO over next 12-18 months
** Stock trading 1.2% higher on the day
** Brokerage reiterates "Buy" rating with PT of 2,200 rupees
** COFO among five stocks on 10-member IT index .NIFTYIT rated "Buy" - data compiled by LSEG
** YTD, COFO down 2.6% vs IT index's 10% decline
(Reporting by Kashish Tandon in Bengaluru)
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Popular questions
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What does Coforge do?
Coforge is rendering Information Technology / Information Technology Enabled Services (IT / ITES) across various geographies areas and is engaged in Application Development & Maintenance, Managed Services, Cloud Computing and Business Process Outsourcing to organizations in a number of sectors viz. Financial Services, Insurance, Travel, Transportation & Logistics, Manufacturing & Distribution and Government.
Who are the competitors of Coforge?
Coforge major competitors are Birlasoft, Persistent Systems, Oracle Finl. Service, Mphasis, L&T Technology Serv., LTM. Market Cap of Coforge is ₹83,623 Crs. While the median market cap of its peers are ₹67,753 Crs.
Is Coforge financially stable compared to its competitors?
Coforge seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does Coforge pay decent dividends?
The company seems to pay a good stable dividend. Coforge latest dividend payout ratio is 34.12% and 3yr average dividend payout ratio is 51.62%
How has Coforge allocated its funds?
Companies resources are allocated to majorly unproductive assets like Accounts Receivable, Short Term Loans & Advances
How strong is Coforge balance sheet?
Balance sheet of Coforge is strong. It shouldn't have solvency or liquidity issues.
Is the profitablity of Coforge improving?
Yes, profit is increasing. The profit of Coforge is ₹1,920 Crs for TTM, ₹1,556 Crs for Mar 2026 and ₹812 Crs for Mar 2025.
Is the debt of Coforge increasing or decreasing?
The net debt of Coforge is decreasing. Latest net debt of Coforge is -₹1,798.6 Crs as of Mar-26. This is less than Mar-25 when it was -₹1,036.4 Crs.
Is Coforge stock expensive?
Coforge is not expensive. Latest PE of Coforge is 47.6, while 3 year average PE is 48.08. Also latest EV/EBITDA of Coforge is 24.41 while 3yr average is 25.48.
Has the share price of Coforge grown faster than its competition?
Coforge has given better returns compared to its competitors. Coforge has grown at ~38.33% over the last 9yrs while peers have grown at a median rate of 18.0%
Is the promoter bullish about Coforge?
There is Insufficient data to gauge this.
Are mutual funds buying/selling Coforge?
The mutual fund holding of Coforge is decreasing. The current mutual fund holding in Coforge is 30.0% while previous quarter holding is 40.48%.