Coforge shares surge nearly 10% as Q1FY27 results show 63% year-on-year profit increase despite 15.3% sequential decline due to one-off costs
PersistentCoforge LtdTCSInfosysHCL TechnologiesEncoraPersistentCoforge LtdTCSOFSSInfosysHCL TechnologiesCoforge

Coforge shares surge nearly 10% as Q1FY27 results show 63% year-on-year profit increase despite 15.3% sequential decline due to one-off costs

Coforge shares surged nearly 10% following a robust Q1FY27 report, revealing a 63% year-on-year profit increase to ₹518.6 crore ($54 million), despite a 15.3% sequential decline due to one-off costs including acquisition and legal expenses totaling ₹66.3 crore.

analyticsindiamag.com+1 source28 July 2026 · 09:33 UTC
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Coforge Ltd, a mid-tier IT services firm, reported a remarkable 63% year-on-year increase in consolidated net profit for Q1FY27, reaching ₹518.6 crore ($54 million). This growth was fueled by advancements in its AI-led engineering business and the integration of the recently acquired US firm Encora.134910

Despite this impressive annual growth, the company faced a 15.3% sequential decline in profit, attributed to one-off costs totaling ₹66.3 crore. These costs included ₹61.3 crore for acquisition and integration related to Encora, and ₹5 crore for legal expenses linked to a cyber litigation matter. Additionally, provisions against customer receivables amounted to ₹10.8 crore.25678

Coforge's operating margin expanded by 285 basis points to 20.3% in Q1FY27, showcasing its operational efficiency. The company also reported a total contract value intake of $691 million, with an executable order book of $2.2 billion, reflecting a 27% quarter-on-quarter increase.

The positive earnings report contributed to a 4% surge in the NIFTY IT index, with Coforge's shares rising nearly 10%, outperforming its mid- and large-cap peers in the sector.

Key Insight
“Coforge's net profit fell 15.3% due to one-off costs, including ₹61.3 crore for Encora integration and ₹5 crore for legal expenses. However, the company reported a total contract value intake of $691 million, with an executable orderbook of $2.2 billion, reflecting a 27% increase quarter-on-quarter.”
CuriousCats studied:
1
analyticsindiamag.com
“One-off acquisition, integration, and legal expenses weighed on Coforge's June-quarter earnings, pulling profit down 15.3% from the previous quarter.”
analyticsindiamag.com →
2
Upstox
“the NIFTY IT index soared 4%, and key midcap IT names like Coforge surged almost 10% on robust earnings in Q1FY27.”
Upstox →
Ask CuriousCats
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EARLIER IN THE STORY:
Coforge shares jump nearly 10% as strong Q1 FY27 results and Encora acquisition drive optimism in Indian IT sector
India TodayIndia Today
Coforge shares jump nearly 10% as strong Q1 FY27 results and Encora acquisition drive optimism in Indian IT sector

Coforge shares surged nearly 10% after strong June-quarter results and a wider rally in Indian IT stocks.

Coforge LimitedCoforge SharesEncora Acquisition
2026-07-28
TL;DR by CuriousCats.ai
  • Coforge shares surged nearly 10% on Tuesday after strong June-quarter results and a wider rally in Indian IT stocks.
  • The stock climbed as much as 9.5% during the early morning session to Rs 1,673.30, making it the top gainer on the Nifty IT index, which itself was up more than 3.5% as of 10:10 am.
  • Management expressed optimism for the current financial year, stating FY27 is shaping up to be an exceptional year.
  • Coforge Limited unveiled strong first-quarter fiscal 2027 results on July 28, 2026, showcasing the transformative impact of its Encora acquisition and robust organic growth across most business segments.
  • The results included two months of contribution from Encora, which added $100.7 million to the top line following consolidation effective May 1, 2026.
  • EBIT grew 80.0% year-over-year to $94.5 million, while profit after tax increased 45.9% to $55.6 million.
NDTV Profit
Coforge reports 49% revenue growth to Rs 5,528 crore and 110% PAT increase for Q1; plans expansion into China

Coforge is planning to set up an entity in China to expand operations.

Coforge ChinaCoforge DividendCoforge Earnings
2026-07-28
TL;DR by CuriousCats.ai
  • Coforge reported a 49% year-on-year increase in revenue to ₹5,527.7 crore and a 110% rise in consolidated profit after tax (PAT) to ₹518.6 crore for the quarter ended June 30, 2026.
  • The Board has in-principally approved setting up of an entity in China for expansion of operations.
  • Coforge's revenue in US dollar terms stood at $592.2 million, up 33.3% from the corresponding quarter of the previous financial year.
  • The company's signed order book executable over the next 12 months stood at $2.23 billion, up 27% sequentially and 44% year-on-year.
  • Coforge's EBITDA increased 74% year-on-year to ₹1,123.3 crore, while the EBITDA margin expanded by 285 basis points to 20.3%.
  • The company declared an interim dividend of ₹4 per equity share, with August 3, 2026 set as the record date for shareholders eligible for the payout.
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