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Mid-tier offshore service provider, Coforge capped off an exceptional FY25 with a very impressive final quarter performance. Revenue for the three months ended 31st March surged by c44% yoy at constant currency to lift full year turnover to $1.45bn, up by almost a third on FY24. The rapid pace of expansion did not come at the expense of profitability with the company’s adjusted EBITDA margin holding steady against the prior year at 18%.
As we have noted before (see here), the most significant contribution to Coforge’s FY25 growth came from the firm’s $220m acquisition of Cigniti Technologies last July. We estimate that, on an organic basis, the company’s top line improved yoy by a still noteworthy c.20% last year. This rate of increase is approaching five times faster than that of the better performing offshore majors over the same period (see here).
The impact of the Cigniti buy was most marked on its new owner’s Americas business with FY25 sales in the region jumping by almost a half yoy to $780m. Coforge’s progress in Europe, within which the UK accounts for around half of territory revenue, was less dramatic. Turnover in this geography increased by around 16% yoy to $503m.
No forward guidance was provided. The company did, however, enter FY26 with strong momentum. Five large wins in Q425, which included the 13-year megadeal with Sabre (see here), helped to fuel a 47.7% yoy rise in the firm’s executable order book for the next twelve months. Coforge’s previously stated ambition of becoming a $2bn revenue business by FY27 (see here) is looking increasingly achievable.
Posted by: Duncan Aitchison at 09:01
Tags:
results
offshore
IT+services