Coforge shares jump 9% after strong Q1 earnings, interim dividend announcement; check the fine print

Coforge, the mid-tier IT services company, reported a strong set of numbers for the quarter ended June 30, 2026 (Q1 FY27). The company also announced an interim dividend.

• According to the company's press release, Coforge's revenue came in at ₹5,527.7 crore in rupee terms, up 49% year-on-year (YoY). In US dollar terms, revenue came in at $592.2 million, up 33% YoY.

• EBITDA, or earnings before interest, taxes, depreciation, and amortisation, also known as operating profit, came in at ₹1,123.3 crore, up 74% YoY. In US dollar terms, EBITDA rose 55% YoY to $120.3 million. EBITDA margin came in at 20.3%, up 285 bps YoY.

• EBIT for the quarter stood at ₹882.2 crore, up 101% YoY in rupee terms. In US dollar terms, EBIT was $94.5 million, up 80% YoY. EBIT margin came in at 16.0%, up 414 bps YoY.

• Profit after tax (PAT) came in at ₹518.6 crore, up 110% YoY. In US dollar terms, PAT stood at $55.6 million, up 46% YoY.

Interim dividend details

The company said its board at the meeting held on July 27, 2026, has declared an interim dividend of ₹4 per equity share of the company having face value of ₹2 each, fully paid-up, for the Financial Year 2026-27. August 03, 2026, has been fixed as Record Date for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend.

How shares are performing

Shares of the company traded 9.2% higher at ₹1,669.70 apiece on the NSE.

What the CEO said

Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd, said, “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."

Singh added, "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. 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."

Key Business Highlights

• Order Intake: $691 Mn TCV for the Quarter.
• Executable Order Book over the next twelve months at $2.23 billion, a 27% QoQ increase.
• Large Deal Momentum: Four large deals signed this quarter across North America, Europe and Latin America.
• LTM attrition was at 10.4 % compared to 10.8 % last quarter.

Coforge Q1 FY27 earnings: The Fine Print

• In its investor presentation, Coforge said that revenue reached US$592.2 million, including US$100.7 million from two months of Encora, with organic CC growth of 5.2% QoQ excluding exited businesses.

• Combined EBIT margin reached 16.0%, ahead of the 15.5% FY27 guidance, with organic EBIT margin at 16.7%.

• 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.

Q1 FY27 Organic Performance