Coforge Q2 FY27 Results: Net Profit Jumps 56.5% To ₹588 Crore, Revenue Rises 53.6%; Shares Rebound After Early Fall

Coforge reported a 56.5% year-on-year (YoY) increase in net profit to ₹588.1 crore for the September quarter of FY27.

The Coforge Q2 FY27 results also showed revenue rising 53.6% YoY to ₹6,170.8 crore. Earnings before interest and tax (EBIT) increased 67.8% to ₹984.7 crore.

Despite the strong quarterly performance, the Coforge share price fell in early trade on Monday, 26 October. The stock opened at ₹1,847.70 and declined to an intraday low of ₹1,814.35, nearly 4.5% below its previous close of ₹1,900.

However, the shares recovered their losses and moved higher. At 12:27 AM, Coforge was trading at ₹1,953.00, up 2.82% from the previous close.

How Did The Quarter Shape Up?

Revenue increased 11.6% quarter-on-quarter (QoQ), supported by the consolidation of Encora. Organic constant currency revenue growth stood at 3.8% sequentially. In dollar terms, revenue rose 41.1% year-on-year (YoY) to US$652 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased over 67% to ₹1,269.7 crore. The EBITDA margin also expanded by 168 basis points to 20.6%. The growth in revenue and profitability marked an improvement in Coforge’s financial performance during the quarter.

Coforge Record Deal Wins

Fresh order intake was around US$1.04 billion, more than double last year’s level. The company signed eight large deals, the most it has ever closed in a single quarter. The 12-month executable order book grew 45% YoY to about US$2.4 billion, providing visibility into revenue for the coming quarters. Management expects to sign eight or more large deals in the third quarter too.

Margin Guidance Gets Raised

Coforge lifted its FY27 EBIT margin guidance to 16% from 15.5%. It is aiming for a reported EBIT margin of 17% in Q4 and expects margins to stay above that level afterward. The EBITDA margin guidance for FY27 remains at 20.5% to 21%.

The company said better productivity from artificial intelligence (AI), lower administrative expenses and improved returns from fixed-price projects should help it improve margins.

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