Coforge Ltd has once again captured attention in India’s IT services landscape, reporting the fastest growth among nine of the country’s fifteen largest IT companies that have announced their quarterly results so far. In a market clouded by global uncertainty, Coforge’s fifth consecutive quarter of outperformance underscores its growing dominance — and a rare confidence about the future of demand, especially in artificial intelligence (AI) and travel technology.

Rising Above Industry Headwinds

In the September quarter, Coforge reported $462 million in revenue, marking a 4.5% sequential and a 26.6% annual increase. This stellar performance not only exceeded analysts’ estimates (Bloomberg had pegged expectations at $461.6 million) but also propelled the company three spots higher in India’s IT hierarchy within a year.

While peers like LTIMindtree, Persistent Systems, and L&T Technology Services clocked moderate sequential growth of 2.3%, 4.23%, and 0.5% respectively, Coforge’s momentum stood out — a feat achieved despite widespread caution among larger players like Infosys, TCS, and Wipro.

The Engines of Growth: Banking and Travel

Coforge’s growth story continues to be fueled by two strong verticals: banking and travel. Almost a third of the company’s incremental revenue in the quarter came from travel and hospitality clients, while banking contributed over a quarter of total revenue.

The standout driver here is Coforge’s mega deal with Sabre, a Texas-based travel technology leader. Valued at $1.56 billion over 13 years, the deal entrusts Coforge with managing software product delivery and implementing AI-driven transformation for Sabre. The contract began ramping up during the quarter, aligning with management’s earlier projections.

Defying Caution with Optimism

While most Indian IT majors remain cautious about global demand, Coforge’s leadership offered a distinctly optimistic tone.

“We continue to believe that demand, especially with the advent of AI, has mutated, but the addressable demand continues to grow at a solid clip,”
said Sudhir Singh, CEO of Coforge, during the company’s analyst call.

This contrasts sharply with Persistent Systems’ CEO Sandeep Kalra, who described the macroeconomic backdrop as “interesting” but largely unchanged. Likewise, major IT firms such as TCS, Infosys, and Tech Mahindra have signaled muted expectations for the year’s second half, citing uncertainties in the U.S. economy, visa regulations, and geopolitical developments.

AI as a Catalyst for Acceleration

Singh emphasized that the evolving AI ecosystem represents not confusion but opportunity.

“This is a landscape characterized by technological confusion and nascent protocols… In this immature ecosystem, our clients need assistance in understanding both their industry problems and how AI works — and how it does not work.”

Coforge’s deep domain expertise and its readiness to integrate AI across client verticals have become critical differentiators. The company has already clinched 10 large deals in the first half of FY25, compared to 14 in the entire previous year — clear evidence of sustained deal momentum amid global economic challenges.

Operational Strength and Financial Resilience

Coforge also demonstrated improved profitability, with operating margins rising 260 basis points sequentially to 14%, supported by lower interest costs and the absence of one-time expenses. Moreover, the company’s free cash flow rebounded to $37.5 million, offering relief after a cash-negative previous quarter.

The company expanded its workforce by 709 employees, reaching 34,896, signaling continued confidence in its delivery pipeline. By comparison, LTIMindtree and Persistent Systems added 2,558 and 884 employees, respectively.

A Confident Path Ahead

Coforge’s management remains bullish about the second half of the fiscal year, citing a robust order book and increasing traction in AI-led transformation.

“We continue to maintain that the full fiscal will be a robust growth fiscal for us, and H2 will also be a robust growth half,” Singh reaffirmed.

The company’s upbeat stance — in contrast to the cautious tone of India’s IT majors — suggests that its sector-specific depth in travel, banking, and automation could continue to drive outperformance.

Takeaways

• Five Quarters of Outperformance: Coforge leads the mid-cap IT pack, sustaining its growth momentum.
• AI as a Growth Lever: Strategic focus on AI-driven automation and domain expertise sets it apart.
• Travel Tech Revival: The Sabre deal cements Coforge’s leadership in travel and hospitality IT services.
• Margin Expansion: Improved operating efficiency and deal execution reflect financial discipline.
• Optimism Amid Uncertainty: A rare vote of confidence in IT demand when others are cautious.

Conclusion

In a sector weighed down by macroeconomic doubts, Coforge stands out as a bold contrarian. By aligning deep industry knowledge with AI-driven transformation and executing large, long-term deals, the company has carved out a high-growth trajectory. If its current pace continues, Coforge may soon transcend its mid-cap label — positioning itself not just as a fast mover, but as a redefined force in India’s next wave of IT leadership.

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