Coforge Names Akhil Kumar Gupta Chairman After O P Bhatt’s Sudden Exit

Coforge, the Indian IT services firm, has appointed Akhil Kumar Gupta as its new chairman and non-executive independent director for a five-year term, following the unexpected resignation of former chairman O P Bhatt. This leadership change comes amid recent boardroom instability that affected the company's market value and investor confidence.

Shares of Coforge experienced a 2% increase to Rs 1,800 on the BSE on Tuesday after the announcement of Gupta's appointment. The company is seeking to stabilize its governance and reassure investors after Bhatt stepped down abruptly on September 9. The resignation followed an internal audit which revealed that Bhatt had withheld a board evaluation report that rated his own performance the lowest among directors.

In the wake of Bhatt's departure, Coforge named Vivek Sharma, an independent director, as the interim chairman. The firm also engaged Egon Zehnder, a global executive search agency, to lead the selection process for a permanent chairperson. Sharma described the search as rigorous and global, emphasizing the need for a candidate with exceptional governance experience, strategic insight, and professional expertise.

From an initial list of 60 candidates, Gupta was unanimously selected by the Nomination and Remuneration Committee as well as the full board. The appointment signals a move toward steady leadership after turmoil that led to a market capitalization loss exceeding Rs 4,400 crore and a share price decline of over 5%. Shortly after Bhatt’s resignation, D K Singh, chairperson of the nomination and remuneration committee, also stepped down citing tensions and differences between independent and executive directors.

Despite these upheavals, Coforge has maintained its financial guidance for the fiscal year 2027. The company reaffirmed its targets for a consolidated EBITDA margin between 20.5% and 21%, an EBIT margin of at least 15.5%, and a free cash flow conversion rate exceeding 100% of profit after tax. Coforge also reiterated its ambitious $5 billion revenue goal for the next four years. Management assured stakeholders that the board is now functioning cohesively and that no further changes in leadership are expected.

Regarding additional investigations into the board issues, Anil Chanana, chair of the Audit Committee, stated that no further external reviews are planned at this time. This clarification aims to reassure investors concerning the company’s governance standards and financial reporting integrity.

Sudhir Singh, Coforge’s CEO and Executive Director, welcomed Gupta’s arrival, highlighting the timing as significant for both the company and the broader IT services industry. Singh noted Gupta’s pivotal role in Bharti Enterprises, where he helped steer the company through significant business transformations. As the IT sector moves toward an AI-driven future, Coforge is positioning itself to harness artificial intelligence technologies for enterprise clients. Singh expressed enthusiasm about Gupta’s governance experience and strategic leadership as the company navigates this evolving landscape.

Akhil Kumar Gupta is a chartered accountant with over four decades of professional experience. Currently, he chairs the boards of 360 ONE WAM Ltd and Bharti Life Insurance Ltd. Additionally, he serves on the boards of Zepto, Snapdeal, Eutelsat Communications, and Lodha Developers, bringing a wealth of corporate governance and strategic insight to Coforge.

Coforge’s recent board developments come at a time when the IT services industry is undergoing rapid changes, fueled by emerging technologies and evolving client demands. Maintaining strong leadership and clear strategic focus is critical as companies in this sector compete globally and adapt to new business realities.

This leadership transition at Coforge illustrates the challenges and complexities of corporate governance in publicly traded companies, especially during periods of internal conflict. The firm’s ability to retain its financial targets and reassure investors will be closely watched as it moves forward under Gupta’s chairmanship.