Coforge expands UK footprint with $158 million deal

Indian IT services firm Coforge on Wednesday said it has secured a $158 million contract from a UK-based client, strengthening its deal momentum in Europe amid growing AI-led transformation mandates.

In a regulatory filing, the company said the five-year agreement will commence in April 2026, with revenue expected to accrue evenly over the contract period. Coforge also expects a material expansion of ancillary revenues tied to the core engagement over the next five years from the same client, indicating potential upsell opportunities beyond the base contract value.

The latest win adds to Coforge’s expanding deal pipeline in the UK and broader European region, where enterprises are accelerating AI-driven modernisation programmes.

“AI-led conversations focused on driving innovation, improving governance and resiliency are helping drive a material increase in the number and median size of large deals in play across Europe,” John Speight, President and Europe Business Leader at Coforge, said.

He added that the company’s AI-based platforms — Coforge Forge-X, Coforge EvolveOps.Ai, Coforge BlueSwan, Coforge Quasar and Coforge Data Cosmos — position it well to address evolving client requirements around automation, cloud modernisation and data-led decision-making.

Coforge operates across 25 countries with 33 global delivery centres, offering digital services spanning AI, cloud, data, integration and automation to support enterprise transformation initiatives.

The UK has been a key growth market for Indian IT firms, particularly in financial services, travel, insurance and public sector modernisation, as enterprises look to improve operational resilience and governance frameworks while driving cost efficiencies.

Financially, Coforge reported revenue of ₹4,188 crore for the December quarter (Q3FY26), up 5.1% sequentially and largely in line with the ₹4,206 crore projection from a CNBC-TV18 poll. EBIT remained largely flat at ₹559.4 crore, with margins narrowing 60 basis points to 13.4% from 14% in Q2FY26. The CNBC-TV18 poll had projected margins to decline 80 basis points to 13.2%.

The new $158 million UK contract provides medium-term revenue visibility beginning FY27 and signals sustained demand for AI-led digital transformation engagements in Europe, even as margin pressures persist in the near term