CHENNAI: India’s leading Mid-cap IT services company Coforge Ltd on Friday reported a 33% fall in net profit to Rs 250.20 crore in Q3FY26 compared to Rs 375.80 crore in Q2FY26, due to impact of new labour codes amounting to Rs 117.90 crore.
However, the company has reported a 17% rise in profit year-on-year basis from Rs 215.50 crore to Rs 250.20 crore, driven strong order book of $59.30 crore in healthcare, high-tech and public sector.
The order book executable over the next 12 months stood at $1.72 billion at the end of the current quarter, a 30.4% YoY growth.
The company, which has over 600 clients in total, has closed six large deals in the quarter. In Q3, it registered a growth of 4.4% in constant currency and YTD dollar revenue rate is 32.8%.
Speaking to presspersons virtually, Sudhir Singh, MD & CEO, said, “Tech services landscape is shifting in ways that we believe will create extraordinary opportunities for firms with right capabilities and necessary resolve.
While two years ago, every board was asking how we can adopt AI, today that has fundamentally changed as our customers are demanding measurable KPI improvements.”
The age of AI experimentation is over, he added. Coforge, in December 2025, acquired US-based AI technology Encora at an enterprise value of $2.35 billion. During the announcement, the Noida-based company had said that it will raise funds through QIP to pay off the $500-million debts of Encora as it has secured a loan at a “middle-single-digit” interest rate from a consortium of five banks.
The company has recruited 445 people, taking its headcount to 35,341 and its attrition rate dropped to 10.9% against 11.4% in last quarter.
Speaking about manpower crisis that the industry is facing, Singh said, “The company continues to recruit highly-skilled talents from different colleges across India, Latin America and North America. The latest crop of fresh engineers are exceptionally good when it comes to being placed in AI-led projects as they come with an ecosystem in colleges globally which is very hackathon centric.”
He added, “It is right that the industry has struggled augmenting employee number as most of the industry peers have struggled to find growth. And where the enterprise budget is compress because of AI, hiring will get compressed.” He also added that the company has no intention of hiring anyone through H-1B visa.