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Coforge held an analyst/investor call following the recent resignations

ICICIdirect Research 15 Sep 2026 DISCLAIMER

News: Coforge held an analyst/investor call following the recent resignations of Chairman O.P. Bhatt and NRC Chair D.K. Singh, with management reiterating that the issue is limited to Board governance and has no impact on business operations or financial performance. The remaining seven-member Board will be led by Vivek Sharma as interim Chairperson until January 31, 2027, who will oversee the appointment of two additional independent directors through a global search and a comprehensive process to select the new Chairperson. Mr. Sharma will not be a candidate for the Chair role while Beth Boucher, the most tenured independent director, has been appointed NRC Chair. Notably, management reiterated that there will be no further Board churn.

View: The analyst/investor call provides some reassurance that the governance issue is ring-fenced from Coforge’s operations and financial outlook, with management maintaining its FY27 guidance of 20.5–21% consolidated EBITDA margin, 15.5% EBIT margin and FCF above 100% of PAT, while the US$5bn four-year revenue ambition remains unchanged. Importantly, management also indicated that Q2FY27 is likely to see the highest number of large deals in Coforge’s history, with large-deal signings already progressing at a pace comparable to what was achieved over an entire year 2–3 years ago, suggesting that the governance developments have not affected client momentum. The planned addition of two directors, a structured Chair selection process and expanded internal-audit focus on corporate governance and AI governance should help strengthen Board processes. Nevertheless, the resignation of two senior independent directors and the underlying disagreement around Board evaluation remain a near-term sentiment overhang, warranting monitoring until the new Board structure is in place. 

Impact: Neutral

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