Coforge Q1 FY2026-27 Results: Net Profit Rises To ₹518.6 Crore, Revenue Surges 49% To ₹5,527.7 Crore; Board Declares ₹4 Interim Dividend

Coforge Q1 FY2026-27 Results: Coforge Ltd on Tuesday, 28th of July, reported its financial results for the April-June quarter of FY27, posting strong growth in revenue and profitability, supported by the integration of Encora. Revenue rose 49% year-on-year to ₹5,527.7 crore, while consolidated net profit increased to ₹518.6 crore in the June quarter. The IT services company also declared an interim dividend of ₹4 per share and reported EBIT margin of 16%.

Coforge said the year-on-year comparison is not strictly comparable as Encora's financials have been consolidated from May 1, 2026, following the acquisition. The acquired business contributed ₹957.9 crore in revenue and ₹157.8 crore in profit after tax during the quarter, accounting for 17.3% of consolidated revenue and 29.7% of profit after tax.

The company reported consolidated net profit of ₹518.6 crore for the quarter. According to its earnings release, net profit increased 110% year-on-year. The regulatory filing, however, reported the same figure as profit attributable to owners, up 63.4% from a year ago due to differences in accounting presentation.

EBITDA rose 74% year-on-year to ₹1,123.3 crore, while EBITDA margin improved to 20.3% from 17.5% a year earlier.

EBIT increased 101.5% year-on-year to ₹882.2 crore, with EBIT margin expanding 414 basis points to 16%, above the company's FY27 guidance of 15.5%. Excluding Encora, organic EBIT margin stood at 16.7%.

The company said it generated free cash flow equivalent to 95.3% of profit after tax during the quarter.

Total expenses increased 43.9% year-on-year to ₹4,797.4 crore, mainly due to higher employee costs, professional charges, depreciation and finance expenses.

Profit before tax stood at ₹702.1 crore after exceptional expenses of ₹55 crore, largely related to Encora acquisition and integration costs, legal expenses and provisions against a customer receivable.

Coforge Q1 FY2026-27 Results-Segment Performance

Revenue from the Americas increased 63.4% year-on-year to ₹3,417.8 crore, while EBIT from the region more than doubled to ₹606.1 crore.

Revenue from Europe, the Middle East and Africa rose 33.6% to ₹1,492.4 crore. Revenue from the Rest of the World business increased 24.7% to ₹617.5 crore.

Coforge Q1 FY2026-27 Results - Key Business Highlights

Order intake during the quarter stood at $691 million in total contract value. The executable order book for the next 12 months increased 27% quarter-on-quarter to $2.23 billion.

The company signed four large deals across North America, Europe and Latin America during the quarter.

LTM attrition eased to 10.4% from 10.8% in the previous quarter. Coforge completed the acquisition of Encora on April 23, 2026. The purchase price allocation remains provisional, resulting in goodwill of ₹12,089 crore. The cash component of the acquisition was funded through $550 million of dollar-denominated borrowings.

Interim Dividend

The board declared an interim dividend of ₹4 per equity share of face value ₹2 each for FY27.

The company has fixed August 3, 2026, as the record date to determine eligible shareholders. The dividend will be paid within 30 days from the date of declaration.

Coforge Q1 FY2026-27 Results: Management Commentary

Chief Executive Officer and Executive Director Sudhir Singh said the company's sequential growth, expanding order book and increasing contribution from AI-led engineering, data and cloud services position it for another year of strong growth.

He added that margins remained ahead of the company's annual guidance, supported by AI adoption across client delivery and internal operations. Singh said the operational integration of Encora, coupled with a healthy demand pipeline, provides strong visibility for FY27.

Coforge Share Price

Following the earnings announcement, Coforge shares climbed as much as 9.56% to an intraday high of ₹1,674.70 on the BSE before trimming some gains. At the time of writing, the stock was trading around 9% higher.

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