Cigniti Technologies Ltd Q2FY26 | FY26 – ₹567 Cr Quarter, ₹83 Cr Profit, and the Coforge Merger That’s Turning Every QA Tester Into an M&A Analyst

1. At a Glance

Welcome toCigniti Technologies Ltd (NSE: CIGNITITEC)— the Hyderabad-based software testing specialist that just became the belle of the Coforge ball. With amarket cap of ₹4,639 crore, aQ2FY26 revenue of ₹567 crore, andPAT of ₹82.6 crore, Cigniti’s quarterly earnings are cleaner than the code they test.

The stock closed at₹1,673, modestly up5.6% over 3 monthsand24% over 6 months— not bad for a company whose main business is catching others’ bugs. What started as a niche testing outfit is now morphing into adigital engineering + AI-driven quality engineering firm, riding the wave of “data-led everything.”

But here’s the masala — Coforge Ltd. (yes, the ₹40,000-crore IT midcap giant) has taken over 54% of Cigniti and theNCLT just approved the shareholder meetingsfor theiramalgamation (Appointed Date: April 1, 2025). Translation? Our smallcap tester is about to become a part of India’s fastest-growing IT franchise.

The question now: will Cigniti’s “testing genes” help Coforge build a super-bug-free hybrid, or will it just become another JIRA ticket in the Coforge empire?

2. Introduction

Cigniti started in 1998, in a Hyderabad office probably smaller than today’s test server rack. Back then, “software testing” wasn’t glamorous — developers mocked testers for finding problems they themselves created. Two decades later, it’s poetic justice: Cigniti earns₹2,100+ croreannually just bytelling Fortune 500 companies what’s broken.

Today, they serve230+ clientsacross24 countries, including60 Fortune 500s. Their work touches every domain — from banking apps that crash after RBI circulars, to airline booking engines that break faster than Indigo’s coffee machines.

They call itDigital Assurance and Quality Engineering, but let’s be real — it’s a high-margin form of constructive criticism.

FY25 was a transformation year. Revenues grew13.6% YoY, but profits grew56% YoY— a rare combo of scaling and margin control. The company now boasts anROE of 26%,ROCE of 34%, andnegligible debt (₹20 crore). In short: almost debt-free, highly profitable, and now half-owned by Coforge.

As the merger looms, the real test begins — can a pure-play QA firm evolve into a digital engineering giant without losing its “testing soul”?

3. Business Model – WTF Do They Even Do?

Imagine a company that gets paid to find flaws in billion-dollar systems — that’s Cigniti. They’re not building the plane; they’re making sure it doesn’t crash.

Here’s how their model works:

• Core Business: Quality Engineering & Digital Assurance– Testing and validating enterprise systems, mobile apps, and data pipelines for BFSI, retail, travel, healthcare, and tech clients.
• Next-Gen Testing– Using AI and ML models to predict test failures before they happen (because even automation needs therapy).
• Data Engineering & Insights– Integrating analytics into QA. Think of it as teaching your test scripts to gossip intelligently.
• Advisory & Transformation– Helping CTOs fix their testing frameworks — usually after a large digital project burns cash.

Revenue mix (Q3 FY24):

• BFSI – 21%
• Retail & E-Commerce – 21%
• Travel – 17%
• Healthcare & Life Sciences – 12%
• ISVs – 11%
• Energy & Utilities – 5%
• Others – 13%

Geographical mix (FY24):

• US – 78%,India – 5%,Rest – 17%

Essentially, America pays for everything.

Cigniti isn’t trying to be Infosys. It wants to be the global “QA brain” that ensures the code written by Infosys, TCS, and Coforge actually works. Ironically, now Coforge owns it — so the tester will test the parent. How poetic is that?

4. Financials Overview

Commentary:Margins are trending upwards — OPM at17%, NPM at14.6%— despite wage inflation and USD volatility. The annualised EPS