Coforge Stock Plunges 7% as Chairman OP Bhatt Quits After Internal Audit Flags Board Evaluation Lapses

Coforge shares dropped 7% in early trade on Wednesday, the steepest fall among midcap stocks, after the IT services company disclosed that chairman and independent director O P Bhatt had resigned with immediate effect. His departure follows concerns raised by an internal audit about how the company's board evaluation was carried out. 

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The stock fell to ₹1,813.3 from Wednesday's previous close of ₹1,950. The slide cut Coforge's gain for 2026 to about 10.6%, still well ahead of the Nifty 50, which is down roughly 10.1% over the same stretch. The company's market capitalisation stands at more than ₹80,300 crore. 

What the audit found 

Bhatt, a former chairman of State Bank of India, stepped down as Non-Executive Independent Director and Chairman of the Board after the internal audit identified gaps in both the process and the disclosure of information around a recent board evaluation exercise. 

The review formed part of Coforge's internal audit plan for Q2 FY26. The internal auditor examined the procedures followed in the Board Evaluation Exercise and the Board Evaluation Report it produced, both of which had been conducted under Bhatt's guidance. 

The findings pointed to shortcomings in the process itself and in what was disclosed, including information relating to the performance evaluation of the chairman. According to Coforge, certain material information contained in or connected to the report was not fully shared with the board when the report was presented. 

How the resignation unfolded 

The board took its concerns to Bhatt and asked for his explanation. His position was that he had acted in good faith throughout the evaluation exercise. 

He resigned on September 8, before the board had finished reviewing that explanation or reached a final decision. In his resignation communication, Bhatt indicated that remaining on the board while there was disagreement over his conduct in the evaluation process would not serve its effective functioning. 

Coforge accepted the resignation with immediate effect, and Bhatt also stepped off all board committees. The company has stated that there were no material reasons for his exit beyond the matters raised by the internal audit and the board's subsequent review. 

Vivek Sharma, currently a Non-Executive Independent Director, has been appointed interim Chairperson of the board until January 31, 2027.