Coforge tanks 9% as chairman OP Bhatt resigns on board evaluation concerns

Coforge chairman OP Bhatt resigned after an internal ​audit into a board evaluation found concerns, ​including that material information about his own performance not fully disclosed to the board.

Share price of Coforge tumbled 8.7 per cent to ₹1,781 on the NSE in Wednesday's intraday deals after the company's Chairman resigned with immediate effect amid concerns raised by an internal audit over the Board's Evaluation Exercise. The company in an exchange filing on Wednesday said that the members of the Board noted the resignation of Non-Executive Independent Director and Chairperson of the company OP Bhatt with immediate effect. The release added that the Board decided to designate Vivek Sharma, Non-Executive Independent Director, as interim Chairperson of the company till January 31, 2027. At 9:20 AM, Coforge traded with a loss of 7 per cent at ₹1,813. The counter saw brisk trading activity, with over 17 lakh shares changing hands in the first five minutes of trade on the NSE. In comparison, the Nifty was down 0.6 per cent, and the Nifty IT down 3 per cent on Wednesday. As of Tuesday (September 08), Coforge was one of the standout performers in the IT pact, up almost 75 per cent as against a near 3 per cent gain in the Nifty IT index. CHECK Stock Market LIVE Updates 

What led to Coforge chairman OP Bhatt's resignation?

According to he company filing, as part of the Internal audit plan for Q2FY26, the company's internal auditor reviewed, among other matters, the process followed in relation to the Board Evaluation Exercise under the guidance of the Chairman and the resulting Board Evaluation Report (BER) presented by the Chairman to the Board (OP Bhatt). The review identified certain concerns in relation to the manner in which the BER had been dealt with and presented to the Board, including that certain material information contained in or relating to the BER and the performance of the Chairman had not been fully disclosed to the Board when the BER was presented. READ MORE "Considering these observations, the Board set out its concerns and sought an explanation from the Chairman in relation to the matters identified in the review. The Chairman provided his response to the matters raised and the Board was in the process of considering and evaluating his explanation and had not taken any final decision in relation to the matters raised with him," the release stated. Meanwhile, OP Bhatt in his emailed resignation to the company said, While the Chairman stated, that he had acted in good faith, "I believe that continuing on the Board while there remains a disagreement considering the characteristics of my good faith actions in the Board evaluation process would not be conducive to the effective functioning of the Board. 

Coforge Q1 earnings

 Coforge reported a 63.7 per cent year-on-year (YoY) surge in Q1 net profit to ₹519 crore for the quarter ended June 2026 as against ₹317 crore in the corresponding June 2025 quarter. However, on a sequential basis, the net profit was down 15 per cent versus ₹666.20 crore posted in March 2026 quarter. Revenue grew 49 per cent YoY to ₹5,527 crore in Q1FY26, helped mainly by the healthcare and insurance businesses, which were up 11.6 per cent and 4.6 per cent, respectively. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin stood at 20.3 per cent, up 2.85 percentage points compared to last year.