Coforge Limited is a mid-tier IT services firm whose Q2 FY 2026-2027 print will be its first full quarter with Encora consolidated, against a sector backdrop of muted ~1% q-o-q industry growth and AI-driven pricing pressure. The two most material things the results will speak to are whether consolidated EBITDA margin bends back inside the 20.5-21% FY27 guidance after Q1's 20.3%, and how much of the record $2,228 Mn order book converts as the $230 Mn large deal ramps.
| Results date | October 23, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 5,527.7 Cr ($592.2 Mn, +33.3% YoY) |
| Previous quarter PAT | Rs. 518.6 Cr (+109.8% YoY) |
| Previous quarter EBITDA margin | 20.3% |
| Market cap | Rs. 86,476.71 Cr |
| CMP | Rs. 1,951.9 |
The company's board will meet on October 23, 2026, to consider the audited financial results for Q2/H1 FY27, per the analyst-call intimation dated October 15, 2026.
An analyst call has been intimated for October 23, 2026, following the Q2/H1 FY27 results, per the October 15, 2026 investor-relations announcement.
The Q2 FY27 print is the first full quarter of Encora consolidation — Q1 carried only two months at $100.7 Mn — and the first real test of whether consolidated EBITDA margin returns to the 20.5-21% FY27 guidance after Q1's 20.3% print. Management has committed to a "robust growth quarter" with a "very fast growth trajectory from Q2 onwards", supported by an NTM executable order book of $2,228 Mn (+44.2% YoY) and the $230 Mn large deal ramping with 20-30 teams, though large-deal revenue impact is guided from Q3. Margin tailwinds include full-quarter Encora G&A improvement (combined G&A already cut 40% to 6.6%, guided to improve further in Q2) and no broad wage-hike drag (broader hikes not before January 1 per management), while headwinds include the $14 Mn hedge MTM to be realized over two quarters, marginal integration costs in Q2, and bad-debt provisions that rose to Rs. 295 Mn in Q1 from Rs. 40 Mn YoY. The BFS re-acceleration question remains open — organic BFS CC growth was 2.9% in Q1 after five quarters of revenue stuck around $120-123 Mn — even as BFSI led sector vertical growth at +4.4% YoY per NASSCOM. The upcoming call is also expected to cover the organic-vs-Encora growth split, order-intake momentum against the $691 Mn Q1 print, and board stabilization under Chairperson Akhil Kumar Gupta, effective September 29, 2026.
FY27 guidance scorecard: Q1 delivery against the FY27 guidance stack sets the starting line for Q2.
Q2-specific commitments
Encora integration progress: Q2 is the first full quarter of Encora consolidation after two months ($100.7 Mn) in Q1.
Risks and headwinds to monitor
Operating metrics in focus
The CEO said Coforge should improve FY28 EBIT over FY27, though not by the same quantum, and that the FY27 threshold will be the minimum starting FY28 onwards. The FY27 consolidated EBIT guidance is 15.5% or higher, which Q1 beat at 16.0%.
Analysts flagged BFS revenue stuck in the $120-123 million range for five quarters alongside client captive expansion, with Q1 FY27 organic BFS CC growth at 2.9%. Management has asserted Banking could be the fastest-growing core vertical of the firm in FY27, with YTD growth of 20%+.
The UK framework agreements are excluded from the executable order book and management describes them as "nearly assured revenue streams for FY27 and beyond". They are expected to sit on top of announced order intake and convert into FY27-plus revenue.
Q1 FY27 consolidated EBITDA margin was 20.3%, 20 bps below the low end of the 20.5-21% FY27 guidance. Q2 is the first test of whether the margin path bends back inside the guided floor, with full-quarter Encora G&A improvement expected to help.
The CFO flagged $10 Mn of realized hedge losses plus a $14 Mn MTM loss to be realized over the next two quarters, with no open hedge book beyond Q3. A positive earnings impact of ~$10 Mn is expected from Q4 FY27 onwards as the hedge book closes.