India's Coforge to top $2 billion revenue target, CEO says
BENGALURU, May 9 (Reuters) - Indian mid-tier IT services firm Coforge (COFO.NS), opens new tab is betting that a healthy order book will help it top the $2 billion revenue target for the financial year 2027, chief executive Sudhir Singh said.
The company snagged a 13-year contract valued at $1.56 billion from U.S.-based travel technology provider Sabre Corp (SABR.O), opens new tab in the previous quarter. That came at a time when larger rivals struggled to secure mega deals as macroeconomic uncertainties and tariff risks weighed on the Indian IT sector.
Coforge's revenues for the last fiscal year stood at $1.45 billion.
"If all we've done in FY27 is $2 billion, then I'll be really disappointed," CEO Singh said in an interview on Tuesday.
"Our next 12-month signed order book is 47.7% higher than where it was at the same time last year. Even if half the world breaks apart, we can still grow very strongly," he said.
Despite the high level of uncertainty, Singh is hopeful that tech spending cannot go down in areas where it is "structural in nature".
Singh said Coforge's demand outlook in the current fiscal year is strong, as all its verticals and geographies are growing. The company gets nearly 30% of its revenue from banking and financial services, 19% from insurance and 18% from travel, transportation and hospitality.
The IT firm's revenue grew about 33.8% in the fiscal year ending March, and it is relying on steady organic growth this year.
"I don't see organic growth slowing in any shape or manner in FY26," Singh said. Coforge had an estimated organic growth of 16.4% last fiscal year, according to Kotak Institutional Equities.
Larger peer Infosys (INFY.NS), opens new tab expects a revenue growth of zero to 3% this fiscal year while HCLTech (HCLT.NS), opens new tab foresees a 2% to 5% rise.
Singh is bullish on operating margins going up "materially" as Coforge focuses on larger deals.
"We will take whatever comes our way, but we have a strong preference for larger deals because they help with visibility, they help with resilience of revenue, and they also help longer term in margin expansion."
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