Coforge (COFORGE) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached $592.2M, up 49% YoY, with robust AI-led services now comprising 86% of revenue and Encora contributing $100.7M in two months.

• EBIT margin improved to 16.0%, ahead of FY27 guidance, with organic EBIT margin at 16.7%.

• Order intake was $691M (organic only), with a 12-month executable order book at an all-time high of $2.23B, up 44.2% YoY.

• Free cash flow was $52.9M, with FCF to PAT conversion at 95.3% (vs. -56.5% YoY).

• Board approved unaudited results, declared an interim dividend of Rs. 4 per share, and re-appointed Mr. OP Bhatt as Chairperson.

Financial highlights

• Gross revenues were INR 55,277M, up 49.2% YoY, with consolidated net profit at Rs. 5,317 Mn and EPS at Rs. 12.34.

• EBIT was $94.5M, up 101% YoY; PAT up 110% YoY; PBT up 92% YoY.

• EBITDA margin was 20.3%, up 285 bps YoY; standalone EBITDA margin at 16.7%.

• Hedge losses: $10M in Q1; $14M M2M loss to be realized over next two quarters.

• Standalone revenue from operations for Q1 FY27 was Rs. 30,804 Mn, up from Rs. 20,459 Mn in Q1 FY26.

Outlook and guidance

• FY27 EBITDA margin guidance: 20.5%-21% consolidated; EBIT margin guidance: 16.5%-17% standalone, 15.5%+ consolidated.

• Free cash flow to PAT expected to exceed 100% for FY27.

• Results for the current quarter are not comparable with previous periods due to the Encora acquisition.

• Robust growth expected in Q2 and beyond, with every business vertical and geography primed for expansion.

• Organic CC growth of 5.2% QoQ exceeded broadly flat revenue guidance.