Coforge chairman O.P. Bhatt quits over audit concerns; stock sinks 8.67%
Synopsis
Coforge's chairman O.P. Bhatt resigned with immediate effect after an internal audit found that key information about his own performance was withheld from the board during the evaluation process — a rare governance rupture that sent the IT firm's stock tumbling nearly 9% in early trade.
Key Takeaways
Coforge shares dropped up to 8.67% to an intraday low of ₹1,780.10 on the BSE on 9 September .
Chairman and non-executive independent director O.P.
Bhatt resigned with immediate effect following concerns raised by an internal Q2 FY26 audit.
The audit found that material information — including details on Bhatt's own performance — was not fully disclosed to the board during the evaluation process.
Vivek Sharma , a non-executive independent director, has been named interim chairman until 31 January 2027 .
Bhatt stated he acted in good faith; the board had not reached a final decision on the matter at the time of his resignation.
Bhatt also serves as independent director at Wockhardt Ltd , though no immediate impact on that role has been disclosed.
Coforge shares plunged as much as 8.67% on Wednesday, 9 September, after the IT services company disclosed that its chairman and non-executive independent director O.P. Bhatt had resigned with immediate effect, following concerns surfaced during an internal audit review of the board evaluation process. The stock hit an intraday low of ₹1,780.10 — a drop of ₹169 per share — on the Bombay Stock Exchange (BSE) by 9:50 am IST.
What Triggered the Resignation
The internal audit, conducted as part of the Q2 FY26 audit plan, reviewed the board evaluation exercise carried out under Bhatt's guidance and the resulting Board Evaluation Report presented to the board. According to an exchange filing by Coforge, the review identified concerns over the manner in which the report had been handled and presented.
Specifically, the audit found that certain material information contained in or relating to the report — including details about the chairman's own performance — had not been fully disclosed to the board at the time of presentation. The board subsequently sought an explanation from Bhatt, who responded, though the board indicated it had not yet reached a final decision on the matters raised.
Bhatt's Explanation
In his resignation email, which Coforge disclosed in the exchange filing, Bhatt stated that he had acted in good faith throughout. He noted that continuing on the board while a disagreement persisted over his conduct in the evaluation process 'would not be conducive to its effective functioning.'
'The matters referred to above are the material reasons for my resignation, and I confirm that there are no other material reasons for my resignation,' Bhatt said in the email.
Interim Leadership Appointed
The board has moved swiftly to fill the leadership vacuum. Vivek Sharma, a non-executive independent director at Coforge, has been designated as interim chairman until 31 January 2027. The company confirmed that Bhatt has also ceased to be a member of all board committees with immediate effect.
Notably, Bhatt also serves as an independent director at Wockhardt Ltd, where he holds membership on the audit, stakeholders' relationship, and capital raising committees. It is not immediately clear whether his Coforge resignation has any bearing on his role at Wockhardt.
Market Reaction and What It Signals
The sharp sell-off underscores how sensitive markets are to governance disclosures, particularly at mid-cap IT firms where institutional confidence in board integrity is a key valuation driver. This comes amid a broader period of heightened scrutiny of corporate governance practices across Indian listed companies, with the Securities and Exchange Board of India (SEBI) having tightened disclosure norms in recent years.
The fact that the board has not yet concluded its review of Bhatt's explanation means further disclosures remain possible, which could keep the stock under pressure in the near term. Investors and analysts will likely watch for any additional regulatory filings or board statements as the situation develops.
Point of View
Yet clearly did not prevent. The board's decision to proceed with an interim chairman rather than an emergency search suggests urgency, but markets will want clarity on whether the audit findings have regulatory implications beyond the boardroom. The unresolved nature of the board's review means this story is not over.
NationPress
9 Sept 2026
Frequently Asked Questions
Why did Coforge chairman O.P. Bhatt resign?
O.P. Bhatt resigned with immediate effect after an internal audit conducted as part of the Q2 FY26 audit plan identified concerns about how the board evaluation report — prepared under his guidance — was presented. The audit found that certain material information, including details about Bhatt's own performance, had not been fully disclosed to the board. Bhatt stated he acted in good faith, but said continuing amid the disagreement would not be conducive to the board's effective functioning.
How much did Coforge shares fall after the resignation?
Coforge shares fell as much as 8.67%, or ₹169 per share, to an intraday low of ₹1,780.10 on the BSE by 9:50 am IST on 9 September. The sell-off reflects investor concern over the governance implications of the chairman's abrupt exit.
Who is the new interim chairman of Coforge?
The Coforge board has designated Vivek Sharma, a non-executive independent director, as interim chairman until 31 January 2027. The appointment was made immediately after Bhatt's resignation was noted by the board.
Has the Coforge board taken any final action against O.P. Bhatt?
No. As of the exchange filing, the board was still considering Bhatt's explanation and had not taken any final decision on the matters raised by the internal audit. Further disclosures are possible as the review continues.
Does O.P. Bhatt hold any other board positions?
Yes. Bhatt also serves as an independent director at Wockhardt Ltd, where he is a member of the audit, stakeholders' relationship, and capital raising committees. No immediate impact on his Wockhardt role has been disclosed.
