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Coforge clarified that the concerns identified in the internal audit

ICICIdirect Research 11 Sep 2026 DISCLAIMER

News: Coforge clarified that the concerns identified in the internal audit relate solely to the Board Evaluation Process and governance procedures, with no bearing on the company’s financial statements, accounting policies, revenue, profitability or business outlook. The internal audit found that Board Evaluation Reports were available only to the NRC Chair and Chairman and were not shared with other Board members, including independent directors; importantly, the Chairman’s category had received the lowest rating in the evaluation, but this finding was not disclosed or discussed with the NRC or Board. The governance review remains ongoing. Coforge also highlighted that key strategic decisions including the Encora acquisition, AdvantageGo divestment, exit from the data-centre business, Sabre contract and planned exit from the loss-making India Government business were approved unanimously by the Board.

View: The clarification provides some reassurance that the issue is governance-related rather than financial or operational, limiting the direct impact on Coforge’s earnings outlook. However, the finding that the Chairman received the lowest evaluation rating and that this was not presented to the wider Board raises concerns around transparency and Board processes, particularly given the subsequent resignation of O.P. Bhatt. The appointment of an interim Chair and the ongoing review should help provide continuity, but further disclosures could remain an overhang on sentiment until the governance review is concluded. 

Impact: Neutral

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