Shares of Indian IT services company Coforge Ltd. experienced a significant drop, falling up to 7% in early trading on Wednesday, September 9, 2026. The decline followed the immediate resignation of its Chairman, OP Bhatt, after an internal audit review uncovered concerns regarding the handling of the company's Board Evaluation Report (BER).
Chairman Resigns Amidst Audit Findings
Coforge announced that OP Bhatt stepped down from his role as Chairman, effective immediately. The company's internal audit review identified issues related to how the Board Evaluation Report was managed and presented to the board. Specifically, the review highlighted that "certain material information contained in or relating to the BER and the performance of the Chairman had not been fully disclosed to the board when the BER was presented."
In his resignation letter, Bhatt stated that continuing on the board would not be conducive to effective functioning, citing a disagreement concerning the "characteristics of his good faith actions in the board evaluation process." He affirmed his dedication during his tenure, emphasizing his efforts to discharge duties independently, objectively, and in the best interests of the company and its shareholders.
Board's Response and Interim Leadership
The Coforge board acknowledged Bhatt's resignation, expressing gratitude for his services. They clarified that his departure was a direct result of the concerns raised in the internal audit and the subsequent process undertaken to consider his explanation regarding those concerns.
To ensure continuity, Vivek Sharma, a Non-Executive Independent Director, has been appointed as the interim Chairperson of Coforge until January 31, 2027.
Stock Performance Impact
Following the news, Coforge shares opened 6.57% lower at Rs 1,821 apiece on the BSE, eventually plunging up to 9% during Wednesday's trade. Despite this immediate downturn, the stock has shown robust performance over the longer term, recording a gain of 56.67% in the past six months.