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Coforge shares fell nearly 6% after chairman and independent director OP Bhatt resigned from the company’s board. Bhatt stepped down with immediate effect on September 8. His exit followed an internal audit that looked into the company’s board evaluation process. The audit raised concerns over how some information was presented in the Board Evaluation Report.
OP Bhatt became the CEO of Coforge in 2024, after serving at the State Bank of India from 2006 to 2011. The audit was conducted as part of the company’s plan for the Sept quarter of FY26. However, during the process, the committee found concerns relating to the Board Evaluation Report. It included non-disclosure of certain material information relating to the report and the chairman’s performance.
As a consequence, the board raised these issues with Bhatt and asked for a reason. Bhatt explained, and in the middle of the evaluation of his explanation, he resigned on September 8, 2026. About this entire process, Coforge mentioned, “The Board considers it important to clarify that the chairman's resignation followed the concerns identified in the internal audit review and the subsequent process undertaken by the Board to seek and consider his explanation.”
Bhatt’s resignation came shortly after shareholders voted on his reappointment as an independent director at Coforge’s August 24 annual meeting. Around 65.4% of votes were in favor, while 34.5% were against. His reappointment did not get the required support. Advent, Coforge’s largest shareholder, also voted against the proposal.
The 6% fall shows that investors were worried about the leadership change and the governance issue. It does not mean Coforge’s business is suddenly weakened. Some brokerages have said the concerns may be bigger than the actual business impact and have kept a positive view of the company.
Coforge now has to calm investor concerns and restore trust in its board. Vivek Sharma will serve as interim chairperson until January 31, 2027. The bigger question is whether the boardroom issue stays limited or starts affecting the company’s wider business.
