Archive · 18 Sep 2025
Coforge Faces Investor Concerns Over Capex and Profitability
Coforge, a tech company, is investing a lot of money, which is making some investors worried.
Even though the company is making more money overall, the spending is high, especially on new data centers and recent acquisitions.
This is affecting the company's profits in the short term.
Some experts think the investments are smart and the company is doing well.
Others worry about how well the company will be able to handle the projects.
The company has a big new deal and is aiming for more profitable results.
However, the high spending and risks are making some investors nervous.
Coforge's shares fell after Q1FY26 results due to high capex and profitability.
FY25 saw a 32% year-on-year CC revenue growth and a 114% increase in capex.
Coforge signed a 13-year deal with Sabre Technologies valued at $1.56 billion in FY25.
The company aims for an Ebit margin of about 14% for FY26.
HSBC Securities sees execution risk in large deals and Cigniti integration.
- Who
- Coforge, an IT company.
- What
- Facing investor concerns after recent financial results and heavy investments in infrastructure and acquisitions, despite strong revenue growth.
- When
- FY25 and Q1FY26.
- Where
- N/A
- Why
- Concerns arise from increased capital expenditure, profitability falling short of expectations, and potential execution risks.
- FY25 Revenue Growth (CC)
- 32% year-on-year
- FY25 Capex Increase
- 114% year-on-year
- FY25 Capex Percentage of Revenue
- 4.6%
- Q1FY26 Ebit Margin
- 13.2%
- Coforge Ranking (FY17-FY25)
- Moved from 18th to 8th largest IT firm
- Executable Order Book (Q1-end)
- $1.55 billion