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Coforge in Q1FY27 reported revenue of US$592.2 mn, up 21.1% QoQ

ICICIdirect Research 28 Jul 2026 DISCLAIMER

News: Coforge in Q1FY27 reported revenue of US$592.2 mn, up 21.1% QoQ/33.3% YoY in US$ terms (+22.3% QoQ CC), including US$100.7 mn contribution from two months of Encora. Organic revenue grew 1.1% QoQ CC and 5.2% QoQ CC excluding the planned exit from low-margin businesses, ahead of the company’s broadly flat Q1 guidance. Vertical wise on a QoQ basis in US$ terms, the growth was led by Healthcare & Hi-tech (11.5% of the mix), BFSI (24.9% of the mix), Others (17.9% of the mix), Insurance (14.8% of the mix) and TTH (23.4% of the mix), which grew 86%, 23%, 18.7%, 14.6% and 12.9% respectively while Government (7.5% of the mix) de-grew by 0.2%. Geography wise on a QoQ basis in US$ terms, growth was led by Americas (61.8% of the mix) and EMEA (27% of the mix) which grew by 35.4% and 18.6% while RoW (11.2% of the mix) de-grew 7.5%. EBITDA margin stood at 20.3%, down ~30 bps QoQ, while EBIT margin stood at 16%, down ~60 bps QoQ; organic EBIT margin stood at 16.7% (+10 bps QoQ), ahead of the FY27 consolidated guidance of ~15.5%. PAT from continuing operations stood at ₹518.6 crore, down 15.3% QoQ/up 109.8% YoY. The company’s order intake stood at US$691 mn (+6.6% QoQ) with 4 large deals, and its 12-month executable order book grew 27.2% QoQ/ 44.2% YoY to US$2.23 bn. Headcount increased by 10,451 QoQ to 46,228, including 1,195 organic additions, while LTM attrition declined ~40 bps QoQ to 10.4%. The Board declared an interim dividend of ₹4 per share.

View: Coforge delivered a strong Q1FY27, with organic growth excluding exited businesses of 5.2% QoQ CC materially ahead of its broadly flat guidance, alongside healthy growth across key verticals. The decline in Others (-8% QoQ CC organically) and RoW (-22% QoQ CC organically) was largely attributable to the planned discontinuation of a ~US$15 mn low-margin India Government portfolio and ~US$4 mn revenue impact from divestment of a data-center asset, and hence does not indicate underlying demand weakness. Deal momentum remained robust with US$691 mn order intake and the 12-month executable order book reaching a record US$2.23 bn, up 44% YoY, providing strong revenue growth visibility. Notably, Encora’s integration has increased acquisition-related amortisation and leverage, with Coforge raising US$550 mn debt at 4.6% interest to fund the transaction. Principal repayments shall begin from Q3FY27 and continue through Q1FY30, which, along with higher interest costs, could weigh on below-EBIT profitability and cash flows. Nevertheless, consolidated EBIT margin of 16% was already ahead of the ~15.5% FY27 guidance and organic margin remained strong at 16.7%, providing comfort on operational execution and debt servicing. We believe, with Encora now operationally integrated, a strong large-deal pipeline, healthy cash conversion and increasing AI-led opportunities, Coforge remains well positioned to sustain industry-leading growth through FY27. We await management commentary for further insights. 

Impact: Positive

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