Coforge Retains Growth Targets Amid Board Exits
Coforge maintains its FY27 financial targets and $5 billion revenue goal despite recent independent director resignations, with management asserting that operational strategies remain unchanged.
Coforge shares declined by more than three percent following the recent departures of Chairman O P Bhatt and independent director D K Singh. Despite this volatility, the company reiterated its consolidated EBITDA margin target of 20.5% to 21% for FY27. Management also confirmed that the long-term goal of reaching $5 billion in revenue over four years remains intact, signaling that the leadership changes have not altered the core financial trajectory.
The governance shifts occurred after Bhatt stepped down on September 8, followed by Singh’s resignation on September 11. Singh cited tensions between independent and executive directors, a claim Coforge has labeled unfounded. In response, the company has launched a global search for two new independent directors, engaging Egon Zehnder to oversee the selection process and ensure appropriate expertise is added to the board.
Management affirms strategic continuity
During an investor call attended by all seven board members, leadership stated that the recent exits have not impacted the company’s priorities or outlook. Coforge indicated that the second quarter of FY27 could record its highest-ever large-deal signings, reflecting strong ongoing business activity. The management emphasized that the board is functioning as a cohesive team and does not anticipate further churn in the near term.
Interim chair Vivek Sharma confirmed he will not seek the permanent chairperson role, which will be reserved for an independent director. Management noted that Sharma’s appointment followed a rigorous search involving 21 candidates, with his selection approved by shareholders with over 83% support. The company clarified that the governance concerns stem from specific observations in the board evaluation process rather than broader operational issues.
Brokerages maintain positive outlooks
Jefferies retained a Buy rating on Coforge with a target price of Rs 2,040, suggesting a 10% upside from current levels. The brokerage noted that the situation appears to be about individual conduct rather than systemic governance failures. Jefferies believes any significant stock weakness should be viewed as a buying opportunity, given the company’s strong growth strategy and recent 70% rally over six months.
Emkay raised its target price to Rs 2,000 from Rs 1,800, citing strong board cohesion. The firm pointed to unanimous approvals of key strategic moves, including the Encora acquisition and the AdvantageGo divestment, as evidence of stable governance. Emkay concluded that the recent exits are isolated matters linked to the internal review process, with no expected impact on Coforge’s operations or long-term growth potential.
Audit reviews confirm stability
Audit Committee Chair Anil Chanana stated that no further external investigation is planned, as KPMG has already completed an internal-audit review. Coforge maintains that its operating and financial performance should be separated from the procedural questions surrounding the board evaluation. According to GN stocks/shares-fall reporting, the company remains focused on executing its strategic agenda while addressing the board composition changes through a structured, transparent process.
