Shares of Coforge Ltd plunged nearly 6% after touching a day’s high of Rs 1,682 on 8th August. The drop followed results from Sabre, one of its largest clients, which led to a 35% plunge in Sabre’s Nasdaq-listed stock overnight.

Sabre reported revenue and EBITDA for the current quarter below its initial guidance. The company also cut its full-year outlook. Sabre now expects 4% to 10% growth in Air Distribution Volumes, down from the earlier double-digit forecast. 

Revenue growth is now expected to be flat to low single digits, compared to the earlier high single digits. At the same time, adjusted pro forma EBITDA guidance has been lowered to $530–$570 million from $630 million.

In March, Coforge signed a $1.56 billion, 13-year deal with Sabre, a leading travel technology firm, to accelerate its product roadmap. Under the agreement, Coforge will enhance product delivery. They will also develop AI-enabled solutions to boost innovation, speed, and scale. Margins for Coforge are expected to improve from the second quarter. The decline in BFS segment revenue is seen as a temporary dip.

At 3 PM, the shares of Coforge were trading 5.80% lower at Rs 1,605.20 on NSE.

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