Coforge achieves record-breaking growth in Q3 FY25—Order book hits $1.37bn

Coforge Limited, a global IT solutions leader, recorded remarkable financial growth in the third quarter of fiscal year 2025 (Q3 FY25), demonstrating its capacity to sustain momentum in an evolving market. The company’s 42.8% year-over-year (YoY) revenue increase, reported in INR terms, alongside a 40.3% growth in constant currency (CC), underscores its effective business strategies and robust demand for its services.

This article delves into the drivers behind this performance, Coforge’s strategic outlook, and its position in the competitive IT services market.

What Fueled Coforge’s Record-Breaking Q3 FY25 Performance?

Coforge’s Q3 FY25 results highlight impressive growth across key financial and operational metrics. The company reported consolidated revenue of INR 3,318.2 crore (US$ 397.1 million), reflecting an 8.4% quarter-over-quarter (QoQ) rise in CC terms. Its adjusted EBITDA margin improved to 17.8%, a sequential expansion of 122 basis points (bps), while adjusted profit after tax (PAT) rose to INR 268 crore, up 10.3% YoY.

According to Sudhir Singh, Chief Executive Officer of Coforge Limited, this growth is attributed to four significant deals signed during the quarter and an expanding 12-month executable order book, now standing at $1.37 billion—a 40.1% YoY increase. Singh also emphasized the importance of Coforge’s ability to capitalize on demand for digital transformation services, particularly in cloud computing, data integration, and intelligent automation.

How Did Key Regions and Segments Contribute to Growth?

Coforge’s growth was driven by diverse geographical and sectoral contributions, with the Americas accounting for 69.2% of revenue growth. The EMEA (Europe, Middle East, and Africa) region contributed 20.5%, while the Rest of the World added 3.3%. This broad-based growth underscores Coforge’s ability to tap into global markets effectively.

In terms of verticals, Banking and Financial Services (BFS) remained the company’s largest revenue contributor, followed by Insurance and Travel, Transportation, and Hospitality (TTH). These sectors have been the cornerstone of Coforge’s growth strategy, as evidenced by its sustained investment in technology innovations tailored to these industries.

Coforge’s subsidiary, Cigniti, also played a crucial role in driving this growth. The company’s EBITDA margin improved to 17.3%, up from 11% in Q4 FY24, driven by increased demand for quality engineering services and AI-enabled analytics.

Why Is Coforge’s Order Book Performance a Game-Changer?

The cornerstone of Coforge’s Q3 FY25 success was its order book performance. The company reported a robust order intake of $501 million, marking the second consecutive quarter of $500+ million in new deals. This performance is indicative of Coforge’s growing pipeline of large deals, particularly in North America and the ASEAN region.

The company signed four major deals during the quarter, including strategic projects in cloud migration, AI analytics, and next-generation IT infrastructure. This strong deal momentum has further solidified Coforge’s position as a leader in digital transformation services, enabling it to attract long-term, high-value contracts.

How Is Coforge Leveraging Strategic Partnerships and Industry Recognition?

Coforge’s success is also tied to its strategic partnerships and accolades, which bolster its reputation in the IT services industry. The company retained its Microsoft Azure Expert MSP status for the third year, reinforcing its credibility in cloud and data services. Additionally, Coforge was recognized as a “Solutions Partner” for Data and AI by Microsoft.

Cigniti, a Coforge company, received notable accolades, including recognition as a Leader in Quality Engineering by Everest Group and a Leader in Continuous Testing Specialist by ISG. These awards highlight Coforge’s emphasis on delivering high-quality services powered by emerging technologies like artificial intelligence and robotic process automation.

What Does This Mean for Coforge’s Strategic Outlook?

Coforge’s strategic outlook remains optimistic, driven by its growing expertise in cloud computing, AI, and digital transformation. Its headcount rose to 33,094, with a net addition of 611 employees in Q3 FY25, reflecting its capacity to scale operations to meet rising demand.

With a low IT attrition rate of 11.9%, among the lowest in the industry, Coforge has demonstrated its ability to retain talent while maintaining a high-performance culture. This stability is critical as the company continues to pursue large-scale projects and expand its market presence globally.

Sudhir Singh remains confident about sustained growth in FY26, supported by a robust order pipeline and strong client relationships.

Is Coforge Positioned for Long-Term Growth?

Coforge’s Q3 FY25 performance showcases its ability to navigate a competitive and dynamic IT services landscape. The company’s focus on securing large deals, enhancing operational efficiency, and fostering strategic partnerships has positioned it for long-term success.

As the demand for cloud computing, data analytics, and AI services continues to rise, Coforge’s innovative solutions and global footprint will likely enable it to remain a key player in the IT services industry.