Indian IT services firm, Coforge, reported a 16.8% rise in its consolidated net profit to 2.61 billion rupees for the quarter ended March 31, falling short of analysts’ projections of 2.81 billion rupees. The company’s financial performance was dampened by rising expenses, even as revenue from operations increased to 34.1 billion rupees from 23.18 billion rupees in the same period last year. However, this revenue figure also missed market expectations, which stood at 35.20 billion rupees.
Despite the lower-than-expected earnings, Coforge witnessed a substantial increase in its order intake, which surged to $2.1 billion from $774 million recorded in the previous year. The company has been actively pursuing growth through strategic acquisitions, including the recent purchase of India-based Cigniti Technologies as well as U.S.-based firms Rythmos and Xceltrait. These moves are part of its broader strategy to expand service capabilities and tap into new markets.
In comparison, rival IT company Mphasis posted better-than-expected profits last week, buoyed by strong deal wins. Meanwhile, larger industry players like Tata Consultancy Services (TCS) and Infosys have expressed caution about the upcoming year, citing a challenging macroeconomic environment and sluggish client spending due to global economic uncertainty.
The $283 billion Indian IT sector continues to navigate multiple headwinds, including shifting client priorities and delays in technology spending. Additionally, unpredictable tariff policies from the United States — once associated with the Trump administration — have added to the uncertainty faced by global clients, making the business outlook for IT service providers increasingly complex.