Coforge Limited submitted a regulatory filing to BSE and NSE pursuant to SEBI (LODR) Regulations, 2015, enclosing its press release, fact sheet, and web presentation for the quarter ended June 30, 2026 (Q1 FY27).

Key Financial Highlights for Q1 FY27

  • Revenue: ₹55,277 Mn (USD 592.2 Mn), up 49.2% YoY in INR terms and 33.3% YoY in USD terms.
  • EBITDA: ₹11,233 Mn (USD 120.3 Mn), up 73.6% YoY in INR terms. EBITDA margin stood at 20.3%, an expansion of 285 basis points (bps) YoY.
  • EBIT: ₹8,822 Mn (USD 94.5 Mn), up 101.4% YoY in INR terms. EBIT margin was 16.0%, an expansion of 414 bps YoY.
  • Profit After Tax (PAT): ₹5,186 Mn (USD 55.6 Mn), up 109.8% YoY in INR terms from a continuing operations base of ₹2,472 Mn in Q1 FY26.
  • Earnings Per Share (EPS): Basic EPS from continuing operations was ₹12.3, up 67.3% YoY.
  • Dividend: The Board recommended an interim dividend of ₹4 per share. The record date for the dividend payout is fixed for August 3, 2026.
  • Effective Tax Rate (ETR): The ETR for the quarter was 25%.

Key Business and Operational Highlights

  • Order Intake: Total Contract Value (TCV) for the quarter was $691 Mn.
  • Executable Order Book: The executable order book over the next twelve months reached $2.23 Bn, representing a 27% increase quarter-on-quarter (QoQ) and a 44% increase year-on-year (YoY).
  • Deals: Four large deals were signed across North America, Europe, and Latin America.
  • Attrition: Last Twelve Months (LTM) attrition, excluding Business Process Services (BPS), was 10.4%, down from 10.8% last quarter.
  • Product Launches: The company launched several new AI-focused platforms:
  • Coforge Nuuron: An "AI Operating System" for industrializing AI-driven outcomes.
  • NEXA Agentic AI Platform: A next-generation insurance business platform.
  • Aeronova.AI: An AI-enabled framework for airlines.
  • Headcount: Total headcount stood at 46,228, a net addition of 10,451 YoY. This includes 34,061 IT billable personnel and 9,360 BPS billable personnel.
  • Utilization: Utilization including trainees was 82.5%.
  • Revenue per Headcount: Annualized revenue per IT billable headcount was $70.6K.

Management Commentary

Sudhir Singh, Chief Executive Officer and Executive Director, attributed the strong performance to differentiated capabilities and execution intensity. He highlighted that 86% of revenues come from AI-led engineering, data, and cloud services. He stated that Q1 margins are ahead of the annual guidance and that the Encora acquisition is now fully operationally integrated, setting up FY27 to be an exceptional performance year.

Acquisition Update: Encora

The acquisition of Encora was consolidated effective May 1, 2026. Q1 FY27 includes two months of contribution from Encora, amounting to $100.7 Mn in revenue.

  • Purchase Consideration: Total purchase consideration was $1,490 Mn (₹139,815 Mn), paid via a share swap ($1,220 Mn) and an equity infusion ($270 Mn).
  • Purchase Price Allocation: Identified net assets were $162 Mn, resulting in goodwill of $1,328 Mn. Customer relationships were valued at $480 Mn and are being amortized over 12 years.

Capital Structure and Debt

  • The company has a debt repayment schedule for a $550 Mn loan at 4.60% p.a. interest with a 3-year tenure. A payment of $75.5 Mn is indicated in the cash flow statement under financing activities.

Cash Flow

  • Operating Cash Flow (OCF): $57.6 Mn.
  • Free Cash Flow (FCF): $52.9 Mn.
  • FCF/PAT Ratio: 95.3%, a significant improvement from -56.5% in Q1 FY26.

Recognitions and Partnerships

The company was recognized as a "Leader" in multiple industry reports by ISG, Whitelane Research, Everest Group, Avasant, and Nelson Hall. It was also honored with the Pega Industry Excellence Award and added as a strategic services partner in the Zscaler AI-Guardian program.

Forward-Looking Statements and Disclaimer

The document contains standard forward-looking statements subject to risks and uncertainties. It also includes a disclaimer stating that the communication is not an offer to sell securities and references a pending Form F-1 Registration Statement with the U.S. SEC.

#Tags: #Coforge #Q1Results #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Positive