Coforge Q1 FY27 Results Analysis: Revenue Jumps 49%, Margin Misses Guidance

Cofacto Research Updated July 27, 2026 2 min read

Neutral

Coforge Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 5,527.70 Cr (+49.20% YoY) and PAT growth of +63.40% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	July 28, 2026
Quarter	Q1 FY 2026-2027
Revenue (Q1)	Rs. 5,527.70 Cr (+49.20% YoY)
PAT (Q1)	Rs. 518.60 Cr (+63.40% YoY)
EBITDA margin	19.14% (+356 bps YoY)
EPS (Q1)	Rs. 12.34 (+67.20% YoY)
Market cap	Rs. 67,660.86 Cr
CMP	Rs. 1,528.40

Quarter Snapshot

COFORGE delivered strong revenue growth of 49% YoY aided by Encora acquisition, with organic growth of 23%. However, EBITDA margin at 19.14% missed the guided >20.5% floor, partly due to integration costs. Near-term focus is on margin recovery and realizing Encora synergies.

Key Investment Insights

Key Positives

Revenue grew 49.2% YoY to Rs. 5,527.7 Cr, with organic growth of 23.4% YoY excluding Encora.
PAT attributable to owners grew 63.4% YoY to Rs. 518.6 Cr, normalized PAT up 66.3% YoY.
Segment EBIT margin of 15.96% held above the guided floor of 15.5%.
Encora contributed Rs. 957.9 Cr revenue (17.3%) and Rs. 157.8 Cr PAT in the first two months.
EMEA revenue grew 33.6% YoY, likely aided by the UK public sector deal ramp.

Risk Factors

Consolidated EBITDA margin of 19.14% missed the guided FY27 floor of >20.5% by 136 bps.
Finance costs doubled QoQ to Rs. 86.6 Cr due to debt drawn for Encora acquisition.
Net FX loss surged to Rs. 65.3 Cr from Rs. 20.1 Cr YoY, pressuring earnings.
RoW segment revenue declined 7.5% QoQ, reflecting India business portfolio closure.