Mphasis Sues Coforge and Former Employee in US Over Alleged Contract Breach and Misuse of Confidential Data
Lawsuit Filed by Mphasis Against Coforge and Former Employee
Mphasis, a technology firm backed by Blackstone Inc, has filed a lawsuit against IT services firm Coforge and former employee Brijesh Khergamker in a US court. The lawsuit alleges breach of contract and misuse of confidential information, according to a report by The Times of India.
Coforge has stated that it is currently evaluating possible counterclaims in response to the case. The company has been embroiled in a high-profile dispute, following a similar case in the Indian IT industry two years ago. Wipro Limited had sought Rs 25 crore in damages from former CFO Jatin Dalal for alleged breach of contract after he joined Cognizant Technology Solutions soon after exiting the company.
The lawsuit seeks injunctive relief from the court to prevent Khergamker from working, either directly or indirectly, on the key financial services account of Charles Schwab Corporation through Coforge or any of its affiliates for a period of one year. Mphasis has also requested restrictions on soliciting Mphasis clients or employees.
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The company has further sought to bar the use or disclosure of Mphasis' proprietary and confidential information and demands the immediate return of any such materials allegedly in the possession of the defendants.
Financial Performance of Coforge
Coforge reported a significant jump in its financial performance for the January-March quarter of FY26. The company's consolidated net profit more than quadrupled to Rs 612.3 crore, aided by a significant one-time tax gain and healthy operational performance.
| Financial Metric | Q4 FY26 | Q4 FY25 | % Change |
|---|---|---|---|
| Consolidated Net Profit | Rs 612.3 crore | Rs 261.2 crore | 134.3% |
| Revenue from Operations | Rs 4,450.4 crore | Rs 3,422.2 crore | 30.0% |
| Net Profit Attributable to Shareholders | - | Rs 261.2 crore | - |
| Profit Growth | more than doubled | - | - |
| Revenue Growth | 5.2% | - | - |
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Coforge's revenue from operations rose 30% year-on-year to Rs 4,450.4 crore in Q4 FY26, compared with Rs 3,422.2 crore in the same period a year ago.
Investor Takeaway
Investors should be cautious of potential disruptions in the IT services sector due to ongoing legal disputes.
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