• Margin expansion guidance: Coforge is guiding for FY27 EBITDA margins of 20.5% to 21% (an expansion of over 200 basis points) with further expansion expected in FY28, driven primarily by internal AI interventions and keeping absolute G&A costs flat.
• Free cash flow: After delivering a normalized free cash flow-to-PAT conversion of 150% in Q4, the company has upgraded its ongoing guidance to a minimum of 100%, aided by cost-structure optimization and internal automation.
• Vertical growth outlook: Following over 70% growth in travel and over 12% growth in banking in FY26, travel is expected to remain one of Coforge's fastest-growing segments in FY27, while banking growth is projected to accelerate.
• Outcome-based pricing: The company is proactively shifting client engagements toward outcome-based models rather than labor-based billing, with its largest active program currently operating on a 100% outcome-based structure.