Business · Companies · 56 mins ago
Mphasis and Coforge lead mixed results for India’s mid-sized IT firms
India’s mid-sized technology services firms reported mixed results for the July-to-September quarter as clients remained cautious about spending.
Mphasis revenue rose 3.2% to $486 million, with financial institutions accounting for almost three-quarters of its added revenue.
Coforge led revenue growth among the firms, rising 10.1% to $652 million.
Sonata Software’s revenue fell 26% from the previous quarter to $256 million, partly because fewer software licences are sold during a seasonally weak period for its domestic business.
The results differed from those of India’s six largest IT companies, which all recorded quarterly revenue growth of 2% or less.
Profitability was stronger at most of the largest firms, while mid-sized companies saw varied changes in operating margins.
Coforge raised its full-year margin guidance to 16%, but analysts say continued growth will depend on securing large deals and sustaining order intake.
India’s mid-sized IT firms reported mixed second-quarter results, with Mphasis and Coforge posting strong revenue growth while Sonata Software’s revenue fell.
Coforge had the fastest revenue growth among the firms covered, rising 10.1% to $652 million.
Mphasis reported a 3.2% sequential revenue increase to $486 million, its strongest second quarter in five years.
Sonata Software’s revenue fell 26% from the previous quarter to $256 million, reflecting seasonal weakness in its domestic software-licensing business.
Operating margins were mixed: they were unchanged at Mphasis and Coforge, while they fell at Persistent Systems and Hexaware Technologies.
- Who
- India’s mid-sized IT firms, including Mphasis, Coforge and Sonata Software.
- What
- They reported mixed second-quarter results, with varied revenue growth and operating margins.
- When
- The July-September quarter; the results were reported in November 2026.
- Where
- India’s IT services sector.
- Why
- Results reflected an uncertain demand environment and cautious client spending; Sonata’s domestic business also faced seasonal weakness in software-licence sales.
This story does not have two clearly opposing sides.
Mphasis recorded a 3.2% sequential revenue increase to $486 million.
Mphasis reported its second-quarter results.
Sonata Software reported revenue of $256 million, down 26% from the previous quarter.
- Coforge revenue growth
- Up 10.1% to $652 million
- Mphasis revenue
- $486 million, up 3.2% sequentially
- Sonata Software revenue
- $256 million, down 26% sequentially
- Coforge operating margin
- Unchanged at 16%
- Hexaware operating margin
- 12.2%, down 140 basis points
What people are saying
The strong order book reflects management’s proactive focus on large deals and provides healthy revenue visibility. However, sustaining $1bn+ quarterly order intake remains key to maintaining the current growth trajectory
Hexaware’s growth has been lower than management’s expectations in YTD-CY26 due to delay and/or reduction in spending in vendor consolidation deals and leadership changes at client’s end