Coforge shares rally 5% after strong Q1 earnings; net profit surges 63% YoY

Shares of Coforge rallied up to 5% to the day’s high of Rs 1,764 on BSE on Wednesday after strong Q1FY27 results in which the company reported a jump of 63% year-on-year (YoY) in profit, while the revenue grew 49%.

According to a filing with the exchange on Tuesday, the IT services firm reported revenue from operations of Rs 5,527.7 crore for the quarter ended June 2026, registering a growth of 24% quarter-on-quarter (QoQ) and 49% YoY.

Also Read | Varun Beverages shares jump 3% after Q1 PAT rises 15%, revenue grows 20%


The company posted a consolidated net profit of Rs 518.6 crore in Q1FY27, down 15% from Rs 612.3 crore in the March 2026 quarter. Every year, however, profit increased significantly by 63% compared with Rs 317.4 crore reported in the same quarter last year. Profitability improvement was reflected in strong margin expansion during the quarter.

Profitability grew materially ahead of revenue, with EBIT increasing 80.0% YoY, PAT 45.9% and EPS 67.3%, while FCF remained healthy at 95.3% of PAT

The company had reported revenue of Rs 4,450.4 crore in March 2026 and Rs 3,704.4 crore in June 2025. The strong revenue performance was supported by healthy demand across geographies, new deal wins, and continued momentum in AI-led engineering, cloud, and data services.

The EBITDA was reported at Rs 1,123.3 crore ($120.3 million), marking a 74% YoY growth in rupee terms and a 55% increase in dollar terms. EBITDA margin expanded to 20.3%, improving by 285 basis points compared with the year-ago period.

The company reported a strong order intake of $691 million in total contract value (TCV) during the quarter.

Coforge’s executable order book for the next 12 months stood at $2.23 billion, increasing 27% QoQ and 44% YoY, providing strong revenue visibility for the coming quarters.

During the quarter, the company secured four large deals across North America, Europe, and Latin America, further strengthening its global growth pipeline.

“Our Q1 performance, with 21.1% sequential growth and 33.3% YoY growth in US dollar terms, 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 $2.23 billion, an exceptionally strong large deal pipeline and differentiated capabilities with 86% 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,” said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge.

Our consolidated Q1 margins have come ahead of our annual margin guidance. The 414 bps YoY expansion in EBIT margin and 285 bps YoY expansion in EBITDA margin reflect the impact of AI infusion at scale in client delivery and internal operations, Singh further said.

Also Read | Coforge shares surge 7% after Q1 profit spikes 63% YoY

The company’s Board declared an interim dividend of Rs 4 per share for the financial year 2026-27. The record date for determining eligible shareholders for the dividend payout has been fixed as August 3, 2026. The payment of the interim dividend would be made within 30 days from the date of declaration of the dividend.

The company also announced the re-appointment of OP Bhatt as an Independent Director and the Chairperson of the Board of the Company for a second term of five consecutive years with effect from May 1, 2027, to April 30, 2032.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)