Coforge Limited submitted an investor presentation detailing its financial results for the quarter ended June 30, 2026 (Q1 FY27), in compliance with SEBI Listing Regulations.

Financial Performance Highlights

  • Revenue: $592.2 million, representing +33.3% YoY and +21.1% QoQ growth. Organic constant currency growth excluding exited businesses was 5.2% QoQ.
  • EBIT Margin: 16.0%, an increase of 414 basis points YoY. Organic EBIT margin was 16.7%, up 486 basis points YoY.
  • EBIT: $94.5 million, increasing +80.0% YoY and +16.7% QoQ.
  • PAT: $55.6 million, a +45.9% YoY increase.
  • EPS: ₹12.34, a +67.3% YoY increase.
  • Free Cash Flow (FCF): $52.9 million, with FCF/PAT ratio of 95.3% in Q1 FY27 compared to -56.5% in Q1 FY26.

Operational and Business Metrics

  • Headcount: Total headcount reached 46,228, with net adds of 10,451 YoY.
  • Attrition: 10.4% LTM (excluding BPS), described as the lowest in the industry.
  • Utilization: 82.5% (including trainees).
  • Revenue per Headcount: $70.6K annualized for IT billable personnel.
  • Order Intake: Fresh order intake of $691 million for Q1 FY27.
  • Executable Order Book: $2,228 million over the next 12 months.

Acquisition and Integration (Encora)

  • The Q1 FY27 results include two months of contribution from Encora following consolidation effective May 1, 2026.
  • Encora contributed $100.7 million to Q1 FY27 revenue.
  • Total purchase consideration for Encora was $1,490 million (₹139,815 million), comprising share swap and equity infusion.
  • Purchase price allocation included $480 million for customer relationships (amortized over 12 years) and $120 million for deferred tax liability on intangibles.

AI Strategy and Business Transformation

  • The company presented its AI strategy centered around the Coforge Nuuron platform, an AI operationalization platform designed to enable enterprise autonomy.
  • The strategy focuses on two main service categories: Revenue Acceleration (CFO/CMO/CRO) and Efficiency Optimization (COO/CIO/CTO).
  • The company reported 40+ accounts in structured Mod Squad rollout, 50+ programs with active transition plans, and 150+ agents live or in build across client stacks.
  • Measured productivity gains ranged from 22-50% by SDLC stage across various client engagements.
  • The company has received 25+ AI recognitions, including 7 "Leader" recognitions in various AI service categories.

Financial Statements Overview

Profit and Loss Statement (INR Millions)
  • Gross Revenues: ₹55,277 million in Q1 FY27 (vs ₹44,504 million in Q4 FY26 and ₹37,044 million in Q1 FY26)
  • Direct People Cost: ₹26,208 million
  • Gross Profit: ₹18,934 million (34.3% margin)
  • EBITDA: ₹11,233 million (20.3% margin)
  • EBIT: ₹8,822 million (16.0% margin)
  • PAT (Continuing Business): ₹5,186 million (9.4% margin)
  • Effective Tax Rate: 25% for the quarter
Balance Sheet (INR Millions as of June 30, 2026)
  • Net Worth: ₹218,766 million
  • Borrowings: ₹53,803 million
  • Goodwill: ₹163,729 million
  • Intangible Assets: ₹56,869 million
  • Cash and Cash Equivalents: ₹13,883 million
  • Debtors: ₹40,979 million
  • Unbilled Revenue (Net): ₹20,969 million
Cash Flow Statement (USD Millions)
  • Operating Cash Flow: $57.6 million in Q1 FY27
  • Investing Activities: $(506.5) million, primarily due to acquisition of subsidiary
  • Financing Activities: $479.7 million, mainly from credit line/term loan
  • Net Change in Cash: $30.8 million
  • Closing Cash Balance: $146.7 million

Business Mix Analysis

Vertical Mix (% of Revenue)
  • Banking and Financial Services (BFS): 24.7%
  • Insurance: 13.6%
  • Travel, Transportation and Hospitality (TTH): 21.3%
  • Healthcare & HiTech: 17.3%
  • Government outside India: 6.0%
  • Others (Retail, Energy & Utilities, Manufacturing): 17.1%
Horizontal Mix (% of Revenue)
  • AI-led Engineering: 50.4%
  • Intelligent Automation: 7.0%
  • Data and Integration: 20.9%
  • Cloud: 14.8%
  • Business Process Management (BPM): 7.0%
Geographic Mix (% of Revenue)
  • Americas: 61.8%
  • EMEA: 27.0%
  • Rest of World: 11.2%

Debt and Financing

  • The company has $550 million debt at 4.60% p.a. interest with 3-year tenure.
  • Repayment schedule shows $75.5 million due.

Client Concentration

  • Top 5 clients: 18.0% of revenue
  • Top 10 clients: 26.1% of revenue
  • Number of clients by size: 1 client >$100M, 3 clients $50-100M, 14 clients $20-50M, 29 clients $10-20M, 52 clients $5-10M, 280 clients $1-5M

Forward-Looking Statements

The document contains forward-looking statements regarding the company's outlook, business strategy, and operational plans, subject to various risks and uncertainties including client performance, competition, talent retention, and legal proceedings.