Coforge Q2 net profit rises 56.5% YoY; raises FY27 EBIT margin guidance to 16%
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Coforge Ltd reported a 56.5% year-on-year increase in consolidated net profit to ₹588.1 crore for the September quarter, while revenue from operations rose 53.6% to ₹6,170.8 crore. The IT services company also raised its operating margin guidance for FY27 to 16% from 15.5%, citing growth momentum and improved profitability.
The company had reported a net profit of ₹375.8 crore and revenue of ₹4,016.4 crore in the corresponding quarter last year.
On a sequential basis, net profit rose 13.4% from ₹518.6 crore in the June quarter, while revenue increased 11.6% from ₹5,527.7 crore. In US dollar terms, revenue rose 40.1% year-on-year and 10.1% quarter-on-quarter to $652.2 million. Sequential organic constant-currency growth stood at 3.8%.
Coforge completed its acquisition of technology engineering services company Encora on April 23, 2026. The acquisition affects year-on-year comparability of the reported financials.
EBIT margin rises to 16%
Coforge's earnings before interest and tax (EBIT) rose 67.8% year-on-year to ₹984.7 crore, while EBIT margin expanded by 134 basis points to 16%. The margin was unchanged sequentially.
EBITDA increased 67.3% year-on-year to ₹1,269.7 crore, with EBITDA margin improving by 168 basis points to 20.6%.
“We are raising our FY27 EBIT margin guidance from 15.5% to 16%. We expect to further improve our EBIT margin to 17% next year,” Sudhir Singh, chief executive officer and executive director of Coforge, said.
Singh said the company had signed eight large deals during the quarter, the highest number in a single quarter, and recorded an order intake of more than $1 billion.
Order book rises 45% year-on-year
Coforge's fresh order intake stood at $1.04 billion in the September quarter, compared with $691 million in the June quarter. Its executable order book for the next 12 months rose 45.4% year-on-year to $2.38 billion.
“The 10.1% sequential growth and 40.1% YoY growth in US dollar terms, a 3.8% sequential organic CC growth, a next twelve month signed order book of $2.38 billion, an order intake of over $1 billion and eight large deals ... have put us firmly on course to be the industry growth leader for the third year running,” Singh said.
For the first half of FY27, revenue rose 51.5% year-on-year to ₹11,698.5 crore, while net profit increased 59.7% to ₹1,106.7 crore.
Separately, the board gave in-principle approval to set up a new US entity, Momentuum Blue, to build a talent pool of Forward Deployed Engineers. The company said further details would be shared in due course.
Shares of Coforge Ltd fell 0.43% to close at ₹1,900.50 apiece on the NSE on Friday. Despite the day's decline, the stock has gained over 8% in the past year, outperforming the Nifty IT index, which has fallen more than 11% over the same period.