Coforge Stock Slides 9% As Chairman O P Bhatt Quits Weeks After Reappointment

Coforge faced a major governance shock on Wednesday after chairman and independent director O P Bhatt resigned with immediate effect, just weeks after the board approved his reappointment for another five-year term. The sudden exit triggered a sharp market reaction, with Coforge shares falling as much as 8.67% to ₹1,780.10 during intraday trading.

Coforge is a global digital services and IT solutions company providing cloud, artificial intelligence, data, engineering and digital transformation services to industries including banking, insurance, healthcare and travel.

Bhatt’s resignation followed concerns identified during an internal audit of the company’s Board Evaluation Exercise and Board Evaluation Report (BER). The review was not related to Coforge’s financial statements or business performance but focused on how the board evaluation was conducted and presented.

According to the company’s regulatory filing, the review raised concerns that certain material information connected with the evaluation report, including information concerning the chairman’s performance, had not been fully disclosed to the board when the report was presented. The board sought an explanation from Bhatt, but had not reached a final decision when he resigned.

Bhatt said he had acted in good faith and felt stepping down was appropriate because continuing on the board amid a disagreement over the nature of his actions would not be conducive to its effective functioning.

The timing has drawn particular attention. In July, Coforge had approved Bhatt’s reappointment as independent director and chairman for another five-year term beginning May 1, 2027, subject to shareholder approval.

Following his exit, Vivek Sharma, a non-executive independent director, has been appointed interim chairman until January 31, 2027.

The leadership turmoil comes despite strong business momentum. Coforge recently reported 49% year-on-year revenue growth in the June quarter, while profit after tax rose 110%. Its next-12-month order book stood at $2.23 billion.

Coforge’s stock decline also came amid broader pressure on IT shares, with the Nifty IT index falling 3.2%. For investors, the company now faces the challenge of balancing strong operating growth with an unresolved governance controversy.