For a mid-tier IT firm, Coforge’s performance is unusually strong, especially in a quarter that’s often relatively lukewarm. In Q3, the company outdid itself, all thanks to AI.
“Almost 100% of the wins and new contracts being awarded to us are AI-infused,” CEO and executive director Sudhir Singh said during the earnings call. Not AI pilots, not strategy decks, but live projects tied to delivery and business outcomes.
Coforge, he said, is “bringing the promise of AI to fruition, instead of just talking about agnostic.” It was a pointed remark in a season where everyone talked about AI-led revenue.
The numbers gave Singh room to be confident. Coforge grew 4.4% sequentially in constant currency terms, with revenue for the quarter ended December 2025 totalling ₹4,188 crore ($478 million). Order intake hit $593 million, helped by six large deals in what is usually a weak quarter.
The real anchor was the pipeline. The executable order book for the next twelve months rose to $1.72 billion, more than 30% higher than a year ago. Year-to-date dollar revenue growth now stands at 32.8%, an outlier in a market where most large firms are still struggling to cross 3–4%.
Margins slipped, but not in a way that changed the tone. Free cash flow came in at 110%, far ahead of guidance. Net profit told a messier story. Profit fell 33% sequentially to ₹250 crore ($27.3 million), hit by a one-time ₹118 crore ($12.9 million) impact from labour code changes, but that is across the board for all firms.
What Makes Coforge Stand Out?
In the earnings call, Singh talked about how two years ago, boards were asking how the company would adopt AI. Today, he said, that question is gone. Clients now want proof of impact, measurable gains, and operational change. “The age of AI experimentation is over,” he said. What matters now is whether firms can modernise foundations and deliver AI as part of one integrated transformation.
That framing explains how Coforge sees its edge in the business. The firm is not chasing client counts; it has about 600 clients and wants growth from depth, not breadth. Around 95% percent of revenue comes from repeat business. The top five clients grew 51% year-to-date. The top ten grew 47%.
When it comes to hiring, rose by its headcount by 445 to 35,341. Attrition eased to 10.9%, among the lowest in the industry.
When it comes to hiring AI-ready fresh graduates, Singh said that, unlike engineers from earlier generations, new freshers have never really relied on certifications to prove their value.
“They come from an ecosystem in colleges globally, which is very hackathon-centric. They are used to being put into situations where they have to find a solution. Given how powerful AI is as a technology, that is the number one skill that you look for, and given the fact that the new cohort of engineers fresh from college has that in abundance, we have definitely not changed the talent catchment that we go after,” Singh explained.
The delivery examples were tightly chosen. At a European global bank, Coforge deployed autonomous agents across data silos to rework cash flow forecasting. At a global airline, it rebuilt the software life cycle using AI-led engineering. At a US financial services firm, its ForgeX platform, an integrated engineering and delivery service launched in November last year, has more than 20 domain-specific agents to govern automation.
The acquisition of Encora sits at the centre of that strategy. The quarter’s numbers do not include it yet. Once closed, Singh said, the combined firm will have a $2.5 billion revenue base across data, cloud, and AI engineering. Coforge has decided not to retire Encora’s $500 million debt through a QIP, opting instead for bank financing at mid-single-digit rates.
The Bigger Point: Positioning
Across Indian IT, AI strategies are now splitting into camps.
TCS reported scale, with $1.8 billion in annualised AI revenue, though it still forms a small share of total business. HCLTech reported precision, with $146 million in advanced AI revenue, narrowly defined. Meanwhile, Infosys refused to publish a number, choosing instead to talk about 4,600 projects, 500 agents in production, and 28 million lines of AI-generated code.
Coforge has chosen a fourth path. It did not publish an AI revenue line at all. Instead, Singh said almost every new deal is already AI-infused. AI is not a business unit for Coforge; it is the delivery model.
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