IT services firm Coforge Ltd. is anticipating a substantial 60-70 percent year-on-year increase in net profit for the March quarter, alongside a projected 29-30 percent jump in net sales. This positive outlook comes as the company prepares to announce its Q4 results and dividend.
Analyst Expectations and Key Focus Areas
Dollar revenue is expected to grow by 1.1-1.5 percent sequentially, with an EBIT margin expansion of 150-160 basis points quarter-on-quarter. However, some brokerages note a meaningful deceleration from recent growth rates.
Encora Acquisition and Travel Vertical Under Scrutiny
Nomura India highlights that updates on the recent Encora acquisition and the ramp-up of a significant new deal in the travel vertical will be key discussion points. The travel sector, however, faces potential impacts from ongoing global conflicts, which could lead to project delays.
- MOFSL: Forecasts 1.5 percent QoQ revenue growth in constant currency, with an expected Q4 profit of Rs 482 crore (up 67.9 percent YoY) and sales of Rs 4,435 crore (up 30 percent YoY). Margins are anticipated at 15 percent, benefiting from resolved wage hike headwinds.
- Elara: Predicts a weaker 1.1 percent QoQ growth, below historical rates, due to project deferrals. It projects Q4 profit at Rs 429.30 crore (up 64.30 percent YoY) and sales at Rs 4,398 crore (up 29 percent YoY).
- Nomura: Eyes commentary on demand, the banking vertical, large deal wins, the impact of AI and geopolitical events, and client discretionary spending. Expects EBIT margin to improve by 160 bps to 15 percent, driven by cost efficiencies, forecasting Q4 profit at Rs 409.20 crore (up 57 percent).
Coforge Dividend Payouts
Coforge has previously declared dividends of Rs 4 per share in January, October 2025, and July 2025. Additionally, an interim dividend of Rs 3.80 per share was announced in May 2025. Over the past two financial years, the company distributed a total of Rs 76 per share in dividends annually.