Coforge eyes industry-leading growth. Will chairman’s exit derail the story?

Harsha Jethmalani
1 min read10 Sep 2026, 01:38 PM IST
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Om Prakash Bhatt resigned as chairman ahead of his term ending in April 2027. Photograph: ABHIJIT BHATLEKAR/MINT
Summary
Coforge’s strong deal wins, sustained execution and improving cash conversion have kept it in good stead. So far in 2026, the stock has fetched 11% returns, widely beating the 26% drop in the Nifty IT index.

Coforge shares extended their loss on Thursday following a 5% drop on Wednesday after the company's chairman and non-executive independent director of the board Om Prakash Bhatt resigned ahead of his term ending in April 2027. An internal audit of the board evaluation exercise highlighted discrepancies in the evaluation process, the non-disclosure of certain material information, and aspects related to the chairman's performance. Vivek Sharma has been appointed the interim chairperson until 31 January 2027.

“While the lack of disclosures, leading to his resignation, was a surprise, it is not a reflection of the company, the board and its practices,” a Nuvama Research report said. "We also find concerns related to the board functioning and/or influence by private equity firms (Advent) as overdone.” Coforge’s largest shareholder, Advent International, had voted against Bhatt’s reappointment at its annual general meeting in August, prompting his resignation.

Coforge clarified that the board evaluation has no bearing on the company’s operations, performance, or guidance. The Street now awaits clarity on the appointment of a permanent chairman. Any change in business strategy following the new appointment would be monitorable. Remember, Coforge targets doubling revenue from a base of around $2.5 billion to $5 billion by FY30.

Also Read | Coforge top shareholder's thumbs-down leads to chairman Bhatt's exit

Growth story

It expects FY27 to be another industry-leading year of growth. Despite exiting low-margin Indian government and data centre businesses, Coforge delivered sequential constant currency organic revenue growth of 1.1% in the June quarter (Q1FY27), beating expectations.

Coforge expects robust revenue growth Q2 onwards, supported by record deal wins. Order intake was $691 million in Q1 with an executable order book at $2.23 billion, up 44% year-on-year. Coforge struck a $230 million deal, which will be a part of Q2 deal wins.

The IT sector is struggling with demand woes and AI-led deflation concerns, but Coforge’s strong deal wins, sustained execution and improving cash conversion have kept it in good stead. So far in 2026, the Coforge stock has fetched 11% returns, widely beating the 26% drop in the Nifty IT index.

Also Read | Coforge confident of hitting $5 bn revenue target well before FY30, says CEO

About the Author

Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.<br><br>Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.<br><br>Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.<br><br>A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.<br><br>She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.

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