Coforge Q2 results: revenue up 53.6%, record $1.04 billion order intake
By Neha KapoorEconomy Correspondent, Peepals Business
Representative image: StockSnap / Pixabay
Coforge's Q2 FY27 revenue rose 53.6% to Rs 6,170.8 crore and profit 56.5% to Rs 588 crore on 23 October 2026, with a record $1.04 billion in new orders.
What Happened
Indian IT services company Coforge reported on Friday, 23 October 2026, that its revenue for the July-September quarter rose 53.6% from a year earlier to Rs 6,170.8 crore, helped by the first full quarter of its acquisition of Encora. Net profit rose 56.5% to Rs 588 crore. The company won a record $1.04 billion in new orders in the quarter and raised its operating margin target for the year from 15.5% to 16%.
Key Facts
- Revenue: Rs 6,170.8 crore in Q2 FY27 (July-September 2026), up 53.6% year on year; in dollars, $652.2 million, up 40.1% year on year and 10.1% from the previous quarter.
- Profit: Rs 588 crore, up 56.5% year on year; in dollars, $62.2 million, up 42.7% year on year and 11.9% from the previous quarter.
- Orders: fresh order intake of $1.04 billion, up 50.6% from $691 million in the June quarter; the company's 12-month executable order book stood at $2.38 billion, up 45.4% year on year.
- Margin: EBIT margin of 16.0% for the quarter; full-year EBIT margin guidance raised to 16% from 15.5%.
- People: headcount of 47,365 after adding 1,137 employees; utilisation of 82.4%.
- Analyst view: the dollar revenue was below some analysts' estimate of about $668 million, and profit was also reported as missing estimates.
- Outlook: chief executive Sudhir Singh said the company expects to lift its EBIT margin further, to 17%, next year.
Why It Matters
Coforge sells technology services to large companies: the kind of digital transformation work that moves their systems to the cloud, rebuilds old software and, increasingly, adds artificial intelligence to their operations. Its numbers are a useful reading of how much global companies are willing to spend on that kind of change.
The headline growth needs one caution. Much of the jump in revenue comes from Encora, a business Coforge acquired and which counted for a full quarter for the first time. Growth driven by an acquisition is different from growth from existing clients, because it adds revenue and costs at the same time. The more telling numbers are the 10.1% rise in dollar revenue from the June quarter and the order book.
Those order figures are strong. New orders of $1.04 billion were the second time the company has crossed the $1 billion mark in a single quarter, and the 12-month executable order book, meaning contracted work expected to be billed over the next year, grew 45.4%. That gives the company visibility on revenue at a time when some larger Indian IT firms, such as Infosys, have cut their growth outlook.
The margin is the other point to watch. EBIT, or earnings before interest and tax, measures profit from the core business before financing costs and taxes. By raising its target to 16% for this year and pointing to 17% next year, the management is signalling that it expects to absorb Encora's costs and run the combined business more profitably.
| Measure | Q2 FY27 | Change year on year |
|---|---|---|
| Revenue (rupees) | Rs 6,170.8 crore | Up 53.6% |
| Revenue (dollars) | $652.2 million | Up 40.1% |
| Net profit (rupees) | Rs 588 crore | Up 56.5% |
| Order intake | $1.04 billion | Up 50.6% from Q1 FY27 |
| EBIT margin | 16.0% | Guidance raised to 16% |
Impact
Short-term: The results give a mixed message: strong orders and a higher margin target, but revenue and profit slightly below what some analysts expected. How the market weighs those two sides will show in the coming sessions. This report does not offer investment advice.
Long-term: A $2.38 billion order book and a target of 17% margins next year set clear tests for the management. If Coforge meets them, it would show that a mid-sized Indian IT firm can grow through acquisitions without hurting profitability, a model others may follow.
Who is affected: Coforge's 47,365 employees and job seekers in Indian IT services, the company's shareholders, its corporate clients, and rival mid-sized IT firms competing for the same contracts.
Key Takeaway
Coforge's Q2 FY27 revenue rose 53.6% to Rs 6,170.8 crore on its Encora acquisition and a record $1.04 billion order intake, and it raised its margin target, though the numbers came in slightly below some estimates.
Questions and Answers
What were Coforge's Q2 FY27 results?
For July-September 2026, Coforge reported revenue of Rs 6,170.8 crore, up 53.6% year on year, and net profit of Rs 588 crore, up 56.5%. In dollars, revenue was $652.2 million. The results were announced on 23 October 2026.
Why did Coforge's revenue grow so fast?
A large part of the growth came from Encora, a business Coforge acquired, which counted for a full quarter for the first time. Dollar revenue also grew 10.1% from the previous quarter.
What is Coforge's order intake and order book?
Coforge won $1.04 billion of new orders in Q2 FY27, up 50.6% from $691 million in the June quarter. Its 12-month executable order book, the contracted work it expects to bill over the next year, was $2.38 billion.
Did Coforge change its guidance?
Yes. Coforge raised its EBIT margin guidance for FY27 from 15.5% to 16%, and chief executive Sudhir Singh said the company expects to improve the margin to 17% next year.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Neha Kapoor, Economy CorrespondentCovers Economy and more for Peepals Business. All stories by Neha Kapoor
Neha Kapoor is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
