Coforge Targets $20 Billion Revenue by 2027, Driven by $1.56 Billion Sabre Contract

Coforge, a mid-sized information technology (IT) services company based in India, has set an ambitious target to surpass $20 billion in revenue by the fiscal year 2027. The company's CEO, Sudhir Singh, expressed confidence that the substantial order book will drive this growth.

In the previous quarter, Coforge secured a significant $1.56 billion, 13-year contract from Sabre Corp, a U.S. travel technology provider. This contract is a testament to the company's ability to secure large-scale deals, even as larger competitors face challenges due to macroeconomic uncertainties and tariff risks in the Indian IT sector.

Coforge's revenue for the last fiscal year was $1.45 billion. Singh, during an interview on Tuesday, stated that achieving only $20 billion in revenue by 2027 would be disappointing. He emphasized that the company's order book for the next 12 months is 47.7% higher than the same period last year, indicating strong growth prospects even if half of the global business encounters issues.

Despite the high level of uncertainty, Singh remains optimistic about technology spending in sectors with "structural essence." He noted that Coforge's demand outlook for the current fiscal year is positive across all business segments and regions. The company derives nearly 30% of its revenue from banking and financial services, 19% from insurance, and 18% from travel, transportation, and hospitality.

In the fiscal year ending in March, Coforge's revenue grew by approximately 33.8%, and the company plans to rely on stable organic growth for the current year. Singh is confident that the company's organic growth will not slow down in the fiscal year 2026, contrasting with larger peers like Infosys, which expects revenue growth of 0% to 3%, and HCL Technologies, which anticipates growth of 2% to 5%.

Singh is also optimistic about a "significant" increase in the company's operating profit margin, as Coforge focuses on large transactions. He stated that while the company will consider any opportunities that come its way, it has a strong preference for large deals. These deals enhance business predictability, strengthen revenue resilience, and improve profit margins in the long run.