Coforge reports strong Q3 FY25 results, digital deals drive growth

IT services provider Coforge has reported strong results for Q3 FY25 that ended December 31, 2024, with revenues of $397.1 million (₹3,318.2 crore), reflecting an 8.4% quarter-on-quarter (QoQ) increase. 

This growth highlights Coforge's performance in a competitive market. In constant currency, revenues grew 8.4% QoQ and 40.3% year-on-year (YoY). In USD, growth was 7.5% QoQ and 40.8% YoY, while in Indian rupees, revenues rose 8.4% QoQ and 42.8% YoY. 

Coforge's EBITDA margin also improved significantly, climbing 29.3% YoY to ₹519.0 crore. 

The company's order intake for the third quarter of fiscal year 2025 reached $501 million, marking the second consecutive quarter in which order intake exceeded $500 million.

Continuing its trend of securing significant contracts, the company finalised four major digital transformation deals during this quarter in the North American and ASEAN markets.

Sudhir Singh, the Chief Executive Officer and Executive Director of Coforge, stated that the company experienced an 8.4% sequential growth in constant currency, alongside a remarkable 40.3% year-over-year growth during a typically weak quarter. 

Additionally, the quarter saw the acquisition of four significant deals and a notable sequential margin expansion of 122 basis points. The Cigniti business has achieved an EBITDA margin of 17.3%, and the pipeline for large deals appears to be very strong. Singh instilled confidence that the "upcoming year will once again witness robust and sustained growth".

By the end of the quarter, Coforge's workforce reached 33,094, having added 611 employees, marking a 16% organic increase since the beginning of the year. This growth underscores the company’s commitment to talent and business development.

In contrast to broader industry trends, where midsize firms have outperformed larger IT companies, Coforge's success demonstrates its resilience and strategic growth focus. For instance, Persistent Systems reported a 30.35% YoY increase in consolidated profit after tax for Q3 FY25, reaching ₹373 crore, alongside a 22.6% YoY revenue boost to ₹3,062 crore. Coforge’s robust financial results for Q3 FY25 position it for continued success in the upcoming year.