Key Takeaways
- Coforge shares fell 8% after Coforge Chairman Om Prakash Bhatt resigned.
- The board was reviewing concerns from an internal evaluation audit.
- Vivek Sharma will serve as interim chairperson until January 31, 2027.
Coforge Chairman Om Prakash Bhatt resigns with immediate effect, sending Coforge shares down as much as 8% on September 9, 2026. The resignation took effect immediately. The stock was trading 7.8% lower at ₹1,797 during early trading, marking its biggest single-day decline since April 2025.
Why coforge chairman om Prakash Bhatt resigned
Coforge Chairman Om Prakash Bhatt Resigns as the board was reviewing his response to an internal audit conducted during the second quarter of financial year 2026. The review examined the board’s self-evaluation process, which was carried out under the leadership of the chairman.
The review raised concerns about how the board evaluation was handled and presented. It found that Bhatt’s performance as chairman had not been fully disclosed when the evaluation was presented.
The board had raised the concerns with Bhatt and was still reviewing his response when he resigned. Coforge has not disclosed the specific information that was not included in the evaluation.
In his resignation statement following the Coforge Chairman Om Prakash Bhatt resignation, Bhatt said remaining on the board during a disagreement over his actions in the evaluation process would not support its effective functioning. He identified the matters related to the review as the material reasons for his resignation and said there were no other material reasons.
Bhatt previously served as chairman of the State Bank of India before joining Coforge, where his chairman resignation has now triggered a leadership change.
He joined Coforge as chairman in 2024, and his original term was scheduled to continue until April 2027.
The Coforge Chairman Om Prakash Bhatt resignation came as the board reviewed concerns related to its internal evaluation process.
Bhatt has also stepped down from all company committees with immediate effect.
Coforge clarifies financial statements remain unaffected
Following the Coforge Chairman Om Prakash Bhatt resign, Coforge said the board evaluation conducted in March and April 2026 related to the previous year and did not concern the company’s financial statements. The company also said the matters had no impact on its business guidance.
The board issued the clarification to prevent confusion about the connection between the evaluation process and the company’s financial performance.
The company has appointed Vivek Sharma, a non-executive independent director, as interim chairperson. Sharma will hold the position until January 31, 2027.
A board evaluation generally reviews several areas of board performance. These include how directors work as a group, the quality of discussions and decisions, oversight of management, independence, potential conflicts, committee performance, and individual director performance.
The evaluation can also include a specific review of the chairman’s performance. Such assessments are separate from financial statement reviews and focus on the functioning and performance of the board.
Coforge’s share movement followed the announcement of Bhatt’s resignation and the details surrounding the board evaluation review. Despite the sharp decline on September 9, the stock had remained a strong performer over the previous 12 months.
The leadership change now places Sharma in the interim chairperson role while the company continues its board processes. Coforge has stated that the evaluation matters do not affect its financial statements or business guidance.
