Coforge Share Price Dips Despite Strong Q1 Performance Backed by Sabre Deal

Market Performance

Coforge share price ended Wednesday’s session down by 0.7%, closing at ₹1,846.2, despite strong Q1 earnings.

Over the past one month, the stock has shown a flat performance, reflecting muted investor sentiment even after upbeat quarterly numbers.

Main News

Coforge Ltd., a leading technology services provider, posted robust financial results for the June quarter, outperforming several of its industry peers.

The ramp-up of the $1.6 billion Sabre deal significantly boosted growth in the travel, tourism, and hospitality vertical, marking a 31% sequential increase in that segment.

In comparison with peers:

• Coforge reported 8% constant currency revenue growth
• Persistent Systems posted 3.3%
• LTIMindtree reported only 0.8%

In US Dollar terms, revenue grew 9.5% sequentially to $442 million, beating estimates of $439 million.

Company Details

• Total order wins during the quarter stood at $507 million
• Previous quarter’s order wins were $2.1 billion, due to the inclusion of the large Sabre deal
• $1.54 billion worth of orders are executable in the next 12 months
  • 3% sequential growth
  • 44% YoY growth

Vertical-wise performance:

• BFS (Banking & Financial Services) declined 1.1%
• Insurance segment posted 1% sequential growth in US Dollar terms

Financial Performance Breakdown

Revenue

• In Rupee terms: ₹3,687 crore (up 8.6% QoQ)
• Slightly below the estimated ₹3,759 crore

EBITDA

• Margins expanded by 60 basis points
• Rose to 17.5% from 16.9% in Q4FY24

EBITDA Margins

• Improved by 0.6% sequentially
• Indicates operational efficiency gains despite macro challenges

EBIT Margins

• Held steady at 13.2%, close to the 13.5% estimate

Summary of the Article

Coforge delivered a strong operational performance in Q1FY25, outshining many of its industry peers.

The ramp-up of the $1.6 billion Sabre deal proved to be a major growth catalyst, especially in the travel and hospitality vertical.

Despite solid revenue growth and margin expansion, Coforge share price closed slightly lower on Wednesday, highlighting a cautious market response.

With a 44% YoY executable order book growth and improving margins, the company continues to maintain a solid business foundation, although investors remain watchful amid sector-wide volatility.