Coforge shares fell as much as 8.7% on Wednesday, 9 September 2026, after Chairman OP Bhatt resigned with immediate effect. An internal audit had flagged disclosure gaps in the company’s board evaluation report.
What the Internal Audit Flagged
Coforge’s internal auditor reviewed the company’s board evaluation exercise as part of the internal audit plan for the second quarter. That exercise had been carried out under Bhatt’s guidance.
A board evaluation is an annual assessment of how well the board and its directors are performing. Coforge said it is a regulatory requirement, and its findings go into a Board Evaluation Report, or BER, which is placed before the board.
The review raised concerns about how the BER was handled and presented. In a filing to the BSE, Coforge said certain material information in the report, including information relating to the Chairman’s own performance, had not been fully disclosed to the board when the BER was tabled.
The company said the evaluation exercise in question was conducted in March and April 2026.
Bhatt Quit Before the Board Reached a Decision
After the audit observations, the board set out its concerns and asked Bhatt for an explanation. He replied, and the board was still weighing that reply.
Coforge said no final decision had been taken on the matter when the resignation came in. The board added that it considered it important to clarify that the exit followed the audit concerns and the process it had run.
In his resignation letter, Bhatt said he had always discharged his duties independently and in the interest of the company and all shareholders. He said staying on while a disagreement remained over how his good-faith actions in the evaluation process were being characterised would not help the board function effectively, and that there were no other material reasons behind the decision.
Bhatt, a former Chairman of State Bank of India, joined the Coforge board as Chairman in 2024. His term was due to run until April 2027. He has also ceased to be a member of every board committee he sat on.
Coforge’s filings do not report any finding of fraud, and the company has separately said the matter has nothing to do with its accounts.
How the Stock Reacted on 9 September
| Coforge on 9 September 2026 (NSE) | Figure |
|---|---|
| Previous close (8 September 2026) | ₹1,950.00 |
| Day’s low | ₹1,780.70 |
| Fall from previous close at the day’s low | 8.7% |
| Price at 11:33 AM IST | ₹1,872.30 (down 3.98%) |
| Nifty IT index day’s low | 28,779.80 (down 3.7%) |
Coforge opened sharply lower. On the BSE the stock opened at ₹1,821, down 6.57%.
It then slipped to a day’s low of ₹1,780.70 on the NSE, an 8.7% fall from the previous close of ₹1,950.00, before recovering a large part of the loss. By 11:33 AM IST it was back near ₹1,872.30, down about 4% on the day.
Volumes were heavy from the opening bell, with more than 17 lakh shares changing hands on the NSE in the first five minutes of trade.
Swings like this show up directly in what retail investors hold. Shares bought on the exchange sit in a demat account, which stores them electronically with a depository such as NSDL or CDSL, and a day like this changes the value of that holding even if the investor does nothing.
Vivek Sharma Named Interim Chairperson
The board designated Vivek Sharma, already a non-executive independent director on the board, as interim Chairperson until 31 January 2027.
A non-executive independent director is a board member who is not part of the company’s day-to-day management and has no material business relationship with it. The appointment gives Coforge board-level continuity while it works out a longer-term arrangement.
Coforge Says Financials and Guidance Remain Unaffected
In a separate exchange filing, Coforge said the matter relates only to the board evaluation exercise and does not relate in any way to its financial statements, its financial reporting, or any financial matter of the company.
It also said the issue has no bearing on operations, business performance, or its stated near-term, medium-term and long-term guidance. The company said the clarification was issued specifically to avoid any misunderstanding on that point.
The Wider IT Sell-Off Added to the Fall
Wednesday was already a bad session for Indian IT stocks. The Nifty IT index hit a low of 28,779.80, down 3.7% from its previous close, and fell for a sixth straight session.
Infosys, Tech Mahindra, HCL Technologies, Persistent Systems and TCS were down roughly 3% to 4% each. Over the six-session run, the Nifty IT index has lost more than 10%.
Analysts pointed to caution ahead of the next US Federal Reserve meeting, bearish brokerage commentary on the sector, and a hike in US work visa fees as the main sector-wide pressures.
So part of the fall in Coforge was company-specific, and part of it was the sector selling off around it.
What to Watch Next
Three things will shape how this plays out.
First, whether Coforge’s board says anything further about the audit findings now that Bhatt has stepped down. Second, who is named permanent Chairperson before the interim term ends on 31 January 2027.
Third, the board meeting scheduled for 23 October 2026, when Coforge will consider its results for the July-September quarter and the first half of FY 2026-27. Any management commentary there will be closely read.
Investors following the stock through the session can track the price live on an online trading platform, along with the exchange filings the company keeps putting out.
Investments in the securities market are subject to market risks. This article is for information only and is not investment advice.
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