Overview
- Bhatt resigned with immediate effect on Wednesday after an internal audit review found that material information in the Board Evaluation Report, including details about the chairman’s performance, had not been fully disclosed to the board.
- The audit was carried out as part of Coforge’s Q2 FY26 internal audit plan and specifically reviewed the process for the Board Evaluation Exercise and the resulting Board Evaluation Report.
- The board had raised concerns and asked Bhatt for an explanation; he responded but the board had not reached a final decision before he stepped down and was replaced by non-executive independent director Vivek Sharma as interim chair until January 31, 2027.
- Shares fell as much as about 8–9% in early trade on the news and then partially recovered, while brokerages have largely kept positive operating views but say disclosure of fixes to board processes is the key near-term monitorable.
- The episode follows Coforge’s April Encora acquisition, which increased private‑equity shareholders’ stake and board representation, and investors will watch how the company strengthens governance and clarifies board dynamics going forward.