Coforge earnings rose 56.5% year on year in the quarter ended September 30, 2026, as a full-quarter contribution from acquired engineering-services company Encora helped revenue increase 53.6%. The Indian IT services provider announced the results on October 23 and raised its full-year operating-margin guidance.
Key Takeaways
- Quarterly net profit reached ₹588 crore on revenue of ₹6,171 crore.
- Order intake more than doubled to $1.04 billion, with eight large deals signed.
- Management raised its FY27 EBIT margin target to 16% from 15.5%.
Table of Contents
- Coforge earnings reflect Encora contribution and organic growth
- Order intake doubles as large-deal activity strengthens
- Higher margin guidance sets the full-year benchmark
- Conclusion
Coforge earnings reflect Encora contribution and organic growth
Coforge’s second-quarter FY27 results showed consolidated revenue rising from ₹4,016 crore a year earlier, while net profit increased from ₹376 crore. Demand for AI-led engineering, data and cloud services also supported the quarter.
The headline revenue increase includes Encora’s contribution and should not be read as purely organic growth. Chief Executive Officer Sudhir Singh said sequential organic growth was 3.8% in constant-currency terms, compared with total sequential revenue growth of 10.1% in US dollars.
Coforge announced the $2.35 billion Encora acquisition in December 2025 to expand its engineering capabilities and presence in the United States and Latin America. The company derives more than 60% of its revenue from North and South America.
| Item | Details |
|---|---|
| Quarterly EBIT | ₹984.7 crore, up 67.8% year on year. |
| Quarterly EBITDA margin | 20.6%, up 168 basis points year on year. |
| Top 10 customers | Accounted for 26.4% of second-quarter revenue. |
| Last-12-month employee attrition | 10.4%, unchanged from the previous quarter. |
Order intake doubles as large-deal activity strengthens
Quarterly order intake rose to $1.04 billion from $514 million a year earlier. Coforge signed eight large deals across North America, Europe and Australia, its highest number in a single quarter.
The signed order book executable over the next 12 months reached $2.38 billion, up 45% year on year. That provides a measure of contracted work ahead, rather than revenue already earned.
The results come as Indian IT companies compete for technology-transformation contracts focused on AI-driven productivity, while the industry faces questions about AI’s effect on traditional labour-intensive services.
Higher margin guidance sets the full-year benchmark
Coforge raised its FY27 EBIT margin guidance to 16% from 15.5%. The revised full-year target matches the operating margin achieved in the September quarter.
Singh also said management expects EBIT margin to improve to 17% in the following fiscal year. That remains a forward-looking expectation, not a reported result.
Conclusion
The next benchmark for Coforge earnings is delivery against the raised 16% FY27 EBIT margin target, alongside execution of its $2.38 billion signed order book over the next 12 months.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
