Coforge Q1 Results: Profit soars 63% to Rs 519 crore driven by Encora acquisition, AI-led services demand

IT solutions firm Coforge on Tuesday posted a 63.3 per cent jump in consolidated net profit to Rs 518.6 crore in the June quarter, on the back of its recent acquisition of Encora and robust demand for its artificial intelligence-led engineering and cloud services.

The company had reported a net profit (attributable to owners) of Rs 317.4 crore in the year-ago period, according to regulatory filings.

Coforge's revenue from operations surged 49.2 per cent to Rs 5,527.7 crore in Q1 FY27, from Rs 3,704.4 crore in Q1 FY26.


Seen sequentially, profit fell 15.3 per cent while revenue grew 24.2 per cent.

Growth was significantly bolstered by the Encora acquisition, which was consolidated effective May 1. Coforge acquired Silicon Valley-based AI firm Encora for an enterprise value of USD 2.5 billion.

The buyout contributed USD 100.7 million to the topline in just two months of the quarter.

"Our Q1 performance reflects the strength of our differentiated capabilities and an execution intensity that is uniquely our own. The confluence of our next twelve-month signed order book of USD 2.23 billion, an exceptionally strong large deal pipeline and differentiated capabilities, with 86 per cent of our revenues coming from AI-led engineering, data and cloud services, has set us up to be the industry growth leader for the third year running.

"With the Encora acquisition completely operationally integrated and with strong demand, record visibility, and a rapidly expanding pipeline of AI-led opportunities, FY27 is shaping up to be an exceptional performance year for the firm," said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge.

Coforge recorded a fresh order intake of USD 691 million during the June quarter, led by strong demand in the Americas.

During the post-earnings investor call, Singh highlighted that the company's bullish commentary on the demand environment is very contrarian to the broader IT industry trend, backed by a robust pipeline.

He noted that the ongoing second quarter is likely to see the highest number of large deals signed in the organisation's history.

"We think we will have a bumper harvest when it comes to the number of large deals that we will close this quarter with," he said.

Shedding light on the rapid turnaround of the Encora business, Singh revealed that Coforge parted ways with Encora's CEO and President on the very first day of the acquisition to take "immediate and effective control".

He explained that while Encora had strong technology capabilities, its go-to-market motion was weak, necessitating the leadership change as part of Coforge's integration playbook.

The company invested approximately USD 58 million in AI innovation during the previous fiscal year (FY26).

Addressing the broader industry narrative, management acknowledged the reality of AI-led deflation in the traditional managed services business.

However, Singh asserted that this headwind is being more than offset by strong, immediate demand tailwinds in new revenue streams. These include legacy modernisation, building data foundations, cloud infrastructure for scalable compute and machine learning operations, as well as cybersecurity.

Coforge recorded a fresh order intake of USD 691 million during the June quarter, led by strong demand in the Americas.

The total headcount reached 46,228 at the end of the first quarter, with a net addition of 10,451 employees year-on-year.

Furthermore, Singh said Coforge continues to hire aggressively at both ends of the spectrum. The firm is specifically targeting Forward Deployed Engineers (FDEs) with 2-3 years of experience for both onsite and offshore roles.

He highlighted a strong focus on hiring at the bottom of the pyramid, noting that the new generation of engineers -- raised in hackathon-driven environments focused on finding solutions rather than just gaining certifications -- are highly responsive and productive. The management did not give a fixed hiring target.