Coforge Q1 Results: Organic growth at 1.1%, Encora acquisition starts contributing

Technology solutions provider Coforge Ltd.

reported its June quarter results late last night, which also include the Encora Holdings consolidation for the first time. Therefore, it must be noted that the like-for-like comparisons are not applicable either sequentially or year-on-year.

According to the reported numbers, Coforge reported a 21.1% growth in its US Dollar revenue to $592.2 million for the June quarter, compared to $489.1 million in the March quarter.

Net profit for the period was down 15.3% quarter-on-quarter to ₹518.6 crore from ₹612.3 crore earlier. Profitability was impacted by multiple one-offs, including acquisition an integration costs worth ₹61.3 crore for Encora, ₹5 crore worth of legal costs, provisions against customer receivables worth ₹10.8 crore, all of which were partly offset by forex gains worth ₹22.1 crore, owing to the devaluation of the Bolivian currency.

This took the net exceptional costs for Coforge during the quarter to ₹55 crore.

Revenue in rupee terms grew by 24.2% from the previous quarter to ₹5,527.7 crore, while margins stood at 16% from 16.5% in the previous quarter.

Stripping out the impact of acquisitions, Coforge's organic constant currency growth stood at 1.1% during the quarter. Excluding the exited businesses, that figure would have been 5.2%.

Coforge highlighted in its post-earnings release that there was a planned exit of a low-margin $15 million India government portfolio and a $4 million data center disinvestment impact during the quarter.

The combined EBIT margin of 16% is ahead of the company's full-year guidance of 15.5%. According to Coforge's CEO Sudhir Singh, the margin expansion from lsat year reflects the impact of AI infusion at scale not just in client delivery, but also in 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," Singh said further.

Coforge won orders worth $691 million during the quarter, taking the total order book to $2.2 billion or $2,228 million.

The company has also declared an interim dividend of ₹4 per share for its shareholders, the record date for which has been fixed as August 3, 2026.

Shares of Coforge ended 3.1% higher on Monday at ₹1,531. The stock is still down 7% so far for the year, and 23% below its 52-week high of ₹1,989.