Are Coforge Ltd latest results good or bad?

Coforge Ltd's latest financial results for the quarter ending December 2025 present a complex picture of operational performance. The company reported consolidated net sales of ₹4,188.10 crores, reflecting a sequential growth of 5.08% and a year-on-year increase of 28.54%. This marks the highest quarterly revenue in the company's history, indicating strong demand for its IT services and successful client acquisition strategies.
However, the consolidated net profit for the same period was ₹250.20 crores, which represents a significant sequential decline of 33.42% from the previous quarter. Year-on-year, the profit showed a positive growth of 16.10%, but the sharp quarter-on-quarter drop raises concerns regarding operational efficiency and margin sustainability. The profit after tax (PAT) margin contracted to 7.08%, down 359 basis points from the previous quarter, highlighting potential cost pressures or investment-related expenses impacting profitability.

The operating margin, excluding other income, was reported at 17.44%, a decrease of 94 basis points from the prior quarter but an improvement of 409 basis points compared to the same quarter last year. This suggests that while the company has made strides in operational efficiency over a longer timeframe, recent pressures have affected short-term profitability.

Overall, Coforge's results illustrate a strong revenue growth trajectory juxtaposed with notable profit volatility, prompting a need for investors to closely monitor the company's operational strategies and margin recovery efforts. Additionally, the company experienced an adjustment in its evaluation, reflecting the mixed performance metrics observed in this reporting period.