Coforge Q2 FY27 Net Profit Jumps 56.5% to ₹588 Crore as Revenue Surges 53.6%

Coforge Reports Strong Profit and Revenue Growth in September Quarter

Coforge Limited, a leading Indian information technology services and digital solutions company, reported a 56.5% year-on-year increase in consolidated net profit to approximately ₹588 crore for the second quarter of financial year 2026–27.

The company's revenue increased 53.6% year-on-year during the quarter ended September 30, 2026, reflecting substantial expansion in its reported business performance.

The results highlight Coforge's growing scale within India's information technology services industry, where companies provide digital transformation, application development, cloud technology, engineering and enterprise technology solutions to global customers.

The significant increase in quarterly revenue also places attention on the company's ability to sustain growth while maintaining profitability and operational efficiency.

Q2 FY27 Financial Performance Highlights

Coforge reported substantial year-on-year growth in both revenue and consolidated profit during the September quarter.

The company's reported profit growth exceeded its revenue growth rate, indicating stronger earnings expansion relative to the increase in its business scale.

However, assessing the underlying profitability trend also requires consideration of operating margins, acquisition-related expenses, financing costs, taxation and other income.

For technology services companies, revenue growth and profit growth can differ because of changes in employee costs, project delivery expenses, currency movements and the mix of services provided to customers.

Revenue Growth Highlights Expansion in IT Services Operations

Coforge's 53.6% year-on-year revenue growth represents a substantial increase in its reported operating scale.

The company provides technology services to customers across industries including banking and financial services, insurance, travel, transportation, healthcare and other enterprise sectors.

Its offerings include application development and maintenance, cloud transformation, data analytics, digital engineering, automation and technology consulting.

Demand for such services is influenced by enterprise investment in modernising legacy systems, improving operational efficiency and developing digital platforms.

The reported revenue expansion demonstrates a significant increase in Coforge's business scale, although the contribution of organic growth, acquisitions and currency movements must be assessed separately to understand the underlying trend.

Profit Growth Outpaces Revenue Expansion

The 56.5% increase in consolidated net profit to ₹588 crore exceeded the company's reported revenue growth rate of 53.6%.

This indicates that earnings increased slightly faster than revenue on a year-on-year basis.

However, the difference between these growth rates alone does not establish that operating margins improved.

Net profit can be influenced by multiple factors beyond core operating performance, including depreciation, finance costs, tax expenses, exceptional items and other income.

Investors therefore evaluate operating profit, earnings before interest and tax, cash generation and recurring earnings alongside reported net profit.

The company's ability to maintain profitability while expanding its operations will remain an important indicator of financial performance.

Encora Acquisition Strengthens Engineering Services Business

The full-quarter contribution from Coforge's acquisition of engineering services company Encora was a major factor behind its reported revenue growth.

The acquisition expanded Coforge's capabilities in artificial intelligence, digital engineering, cloud services and data-led enterprise technology solutions.

The integration also contributed to the company's increased scale and strengthened its ability to pursue larger technology transformation engagements.

Coforge reported sequential organic constant-currency growth of 3.8%, providing an additional indicator of business expansion beyond the acquisition contribution.

Coforge Secures Eight Large Deals as Order Intake Reaches $1.04 Billion

Coforge signed eight large deals during Q2 FY27, the highest number of major contracts secured by the company in a single quarter.

The agreements were signed across North America, Europe and Australia, reflecting demand for the company's technology services across international markets.

Total contract value of new orders reached approximately $1.04 billion during the September quarter.

The company's executable order book for the next 12 months stood at $2.38 billion, representing 45% year-on-year growth.

The order book provides visibility into contracted business opportunities, although the timing of revenue recognition will depend on project delivery schedules and contractual arrangements.

Operating Profit Rises 67.8% as Margins Improve

Coforge reported EBITDA of ₹1,269.7 crore during Q2 FY27, representing a 67.3% year-on-year increase.

The EBITDA margin reached 20.6%, improving by 168 basis points compared with the corresponding quarter of the previous financial year.

Earnings before interest and tax increased 67.8% to ₹984.7 crore, while the EBIT margin reached 16%, an improvement of 134 basis points year-on-year.

The expansion in operating profitability indicates improved earnings generation alongside the company's larger revenue base.

Coforge also raised its FY27 EBIT margin guidance from 15.5% to 16%, reflecting management's expectations for operational performance.

Artificial Intelligence Becomes Central to Growth Strategy

Artificial intelligence remains an important component of Coforge's technology services strategy.

The company is integrating AI capabilities into software engineering, enterprise transformation, cloud services and customer experience solutions.

During the quarter, Coforge introduced Momentuum blue, a specialised forward-deployed engineering unit designed to work closely with client teams on implementing technology solutions.

It also launched CXNova, an AI-driven customer experience orchestration platform intended to support enterprise engagement and personalisation.

The company expanded its Kraków Engineering Center in Poland to strengthen its AI engineering and nearshore delivery capabilities.

These initiatives reflect Coforge's focus on building specialised technology services as enterprise customers increase investment in AI-enabled systems.

Workforce Expands to 47,365 Employees

Coforge increased its total workforce by 1,137 employees during the September quarter, taking its headcount to 47,365.

The increase reflects the company's expanded operational scale and requirements for technology delivery across international markets.

Workforce management remains an important consideration for IT services companies because employee expenses represent a significant portion of operating costs.

Coforge's ability to maintain employee productivity, improve delivery efficiency and develop specialised technical capabilities will remain important to sustaining margins.

Management Raises Margin Outlook for FY27

Coforge Chief Executive Officer and Executive Director Sudhir Singh highlighted the company's revenue momentum, large-deal activity and improving profitability during the quarterly earnings announcement.

Management raised its EBIT margin guidance for FY27 to 16%, compared with its earlier projection of 15.5%.

The company also indicated an ambition to achieve an EBIT margin of 17% in the following financial year.

The outlook reflects expectations that improved delivery efficiency, AI-enabled execution and the integration of acquired capabilities could support profitability.

However, achieving these targets will depend on demand conditions, project execution, employee costs, currency movements and the company's ability to maintain operating discipline.

Indian IT Services Industry Faces Changing Demand Conditions

India's information technology services industry is undergoing changes as enterprise customers increasingly evaluate technology spending against measurable business outcomes.

Demand for artificial intelligence, cloud modernisation, cybersecurity, data engineering and automation continues to create opportunities for specialised service providers.

At the same time, uncertainty surrounding global economic conditions and discretionary technology spending remains an important consideration.

Coforge's growth strategy combines specialised industry capabilities, acquisitions and large enterprise contracts.

Its reported performance highlights the potential for differentiated technology services providers to expand even as the broader industry faces changing customer spending priorities.

Investors Focus on Order Book, Margins and Sustainable Growth

Following the September-quarter results, investors are expected to assess whether Coforge can sustain revenue momentum and convert its expanding order book into recurring earnings.

The $2.38 billion executable order book provides visibility into future business activity, while the eight large deals signed during the quarter demonstrate continued contract momentum.

The company's revised margin guidance will also remain an important benchmark for evaluating financial performance.

Investors will monitor the contribution from Encora, organic revenue growth, AI-led service demand, cash generation and the company's ability to manage integration-related costs.

Maintaining strong execution across these areas will be important to supporting future profitability.

Conclusion

Coforge's Q2 FY27 results reflected substantial growth in both revenue and profitability, supported by acquisition-related expansion, large contract wins and demand for technology services.

Consolidated net profit increased 56.5% to approximately ₹588 crore, while revenue rose 53.6% to ₹6,170.8 crore.

The company also secured eight large deals, recorded quarterly order intake of $1.04 billion and expanded its executable 12-month order book to $2.38 billion.

With improved operating margins and higher FY27 profitability guidance, Coforge enters the second half of the financial year with a substantial contracted business pipeline.

Its ability to sustain organic growth, integrate acquired operations and deliver AI-enabled technology services efficiently will remain central to its financial outlook.