Coforge Q2 Results: EBIT margin guidance raised to 16% as order book jumps 45%; misses estimates

IT solutions firm Coforge Ltdon Friday (October 23) reported a 13.4% quarter-on-quarter (QoQ) rise in net profit to ₹588 crore for the September quarter, below the CNBC-TV18 poll estimate of ₹629 crore. Revenue increased 11.6% QoQ to ₹6,170.8 crore, missing the poll estimate of ₹6,363 crore.

Revenue in US dollar terms rose 10.1% QoQ to $652.2 million, compared with the CNBC-TV18 poll estimate of $665 million. Earnings before interest and tax (EBIT) margin remained flat at 16% QoQ, in line with the poll estimate.

The information technology services company raised its earnings before interest and tax (EBIT) margin guidance for FY27 to 16%.

The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹1,269.7 crore ($134 million) for Q2 FY27, up 67.3% year-on-year (YoY) in rupee terms and 52.6% in US dollar terms. The EBITDA margin increased by 168 basis points (bps) YoY to 20.6%.

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Coforge reported an order intake of $1.04 billion in total contract value (TCV) during the quarter. The executable order book for the next 12 months stood at $2.38 billion, up 45% year-on-year (YoY).

The company signed eight large deals during the quarter, the highest number signed in a single quarter. These deals were across North America, Europe and Australia. Coforge's last twelve-month attrition rate stood at 10.4%, unchanged from the previous quarter.

The company also announced the launch of Momentuum Blue, a specialised Forward Deployed Engineers (FDE) operating unit that works within client teams to own business outcomes and convert enterprise knowledge and context into production systems designed to deliver measurable value with speed.

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Coforge expanded its Kraków Engineering Center in Poland as a strategic artificial intelligence (AI) engineering and nearshore delivery hub serving clients across Europe and globally.

The company also introduced CXNova, an agentic customer experience (CX) orchestration platform designed to support personalisation, engagement and continuous optimisation across critical customer touchpoints.

Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd, said, "The 10.1% sequential growth and 40.1% YoY growth in US dollar terms, a 3.8% sequential organic cc growth, a next twelve-month signed order book of $2.38 billion, an order intake of over $1 billion and eight large deals, the most the firm has ever signed in a single quarter, have put us firmly on course to be the industry growth leader for the third year running.

We are raising our FY27 EBIT margin guidance from 15.5% to 16%. We expect to further improve our EBIT margin to 17% next year and will be targeting to be amongst the top three scaled IT services firms on margins while maintaining our growth momentum."

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Shares of Coforge Ltd ended at ₹1,900.00, down by ₹14.00, or 0.73%, on the BSE.