Coforge shares gain ahead of Q1 results: Profit may rise 80-90%; Encore integration eyed
Coforge Q1: Eyes would be on growth acceleration after a soft Q1FY27, as pass-through and India business headwinds fade. Investors would focus on new deal wins and contribution from framework deals.
- Jul 27, 2026,
- Updated Jul 27, 2026 9:28 AM IST
Coforge Ltd is likely to report 80-90 per cent year-on-year (YoY) rise in net profit on 24-25 per cent per cent YoY surge in net sales. Margin is seen expanding YoY, but falling sequentially. All eyes would be on vertical-wise commentary, new deal wins, order book trends and integration of the Encore acquisition.
Axis Securities expects Coforge to report 83.80 per cent YoY rise in net profit at Rs 526 crore for the June quarter compared with Rs 286 crore in the same quarter last year. Revenue is seen growing 25.9 per cent YoY to Rs 4,643 crore compared with Rs 3,689 crore in the corresponding quarter last year. Ebit margin is seen rising 397 basis points YoY.
On a sequential basis, Axis Securities expects the midcap IT firm to report a revenue growth of 4.3 per cent, supported by deal ramp ups across key verticals and contributions from the Encore acquisition. EBIT margin is seen falling 35 basis points quarter-on-quarter (QoQ), due to weak operating leverage despite currency tailwinds.
Ahead of its quarterly, results, shares of Coforge were trading 1.15 per cent higher at Rs 1,501.70 on BSE.
Elara Securities pegged Coforge's Q1 net profit at Rs 505 crore, up 89.60 per cent YoY. Net sales are estimated at Rs 4,597 crore, up 24.6 per cent YoY. Another brokerage Mirae Asset Sharekhan sees adjusted net profit for Coforge at Rs 521 crore. It sees revenue for the IT firm at Rs 4,612 crore. Ebit margin is seen at 16.6 per cent, up 338 per cent.
Coforge is an institutional favourite, with mutual funds holding a 30 per cent stake, foreign portfolio investors owning 24.31 per cent, and insurers another 10.47 per cent.
"We expect flat Q1 revenues on organic basis courtesy exit from India data center build out business. Q1 revenues may include two quarters of Encora acquisition. Expect underlying EBIT margin of 16.5 per cent, while Encora acquisition will drag overall margins. We forecast FX loss of Rs400 mn, which will impact overall profits. We expect steady signings of $550 million excluding Encora. Reported numbers may be different after the acquisition," Kotak Institutional Equities said.
This brokerage said eyes would be on growth acceleration after a soft Q1FY27, as pass-through and India business headwinds fade. Investors would focus on new deal TCV, 12-month order backlog trends and contribution from framework deals. Kotak said deal wins are required to sustain the aspirational 15 per cent organic growth trajectory,
Balance sheet trends including cash generation to pay down Encora-related debt, capital allocation priorities, including potential recalibration of dividend payout to accelerate deleveraging, and trends in long-duration unbilled revenues and progress on reducing reliance on structured deals, would also be keenly followed.
Coforge Ltd is likely to report 80-90 per cent year-on-year (YoY) rise in net profit on 24-25 per cent per cent YoY surge in net sales. Margin is seen expanding YoY, but falling sequentially. All eyes would be on vertical-wise commentary, new deal wins, order book trends and integration of the Encore acquisition.
Axis Securities expects Coforge to report 83.80 per cent YoY rise in net profit at Rs 526 crore for the June quarter compared with Rs 286 crore in the same quarter last year. Revenue is seen growing 25.9 per cent YoY to Rs 4,643 crore compared with Rs 3,689 crore in the corresponding quarter last year. Ebit margin is seen rising 397 basis points YoY.
On a sequential basis, Axis Securities expects the midcap IT firm to report a revenue growth of 4.3 per cent, supported by deal ramp ups across key verticals and contributions from the Encore acquisition. EBIT margin is seen falling 35 basis points quarter-on-quarter (QoQ), due to weak operating leverage despite currency tailwinds.
Ahead of its quarterly, results, shares of Coforge were trading 1.15 per cent higher at Rs 1,501.70 on BSE.
Elara Securities pegged Coforge's Q1 net profit at Rs 505 crore, up 89.60 per cent YoY. Net sales are estimated at Rs 4,597 crore, up 24.6 per cent YoY. Another brokerage Mirae Asset Sharekhan sees adjusted net profit for Coforge at Rs 521 crore. It sees revenue for the IT firm at Rs 4,612 crore. Ebit margin is seen at 16.6 per cent, up 338 per cent.
Coforge is an institutional favourite, with mutual funds holding a 30 per cent stake, foreign portfolio investors owning 24.31 per cent, and insurers another 10.47 per cent.
"We expect flat Q1 revenues on organic basis courtesy exit from India data center build out business. Q1 revenues may include two quarters of Encora acquisition. Expect underlying EBIT margin of 16.5 per cent, while Encora acquisition will drag overall margins. We forecast FX loss of Rs400 mn, which will impact overall profits. We expect steady signings of $550 million excluding Encora. Reported numbers may be different after the acquisition," Kotak Institutional Equities said.
This brokerage said eyes would be on growth acceleration after a soft Q1FY27, as pass-through and India business headwinds fade. Investors would focus on new deal TCV, 12-month order backlog trends and contribution from framework deals. Kotak said deal wins are required to sustain the aspirational 15 per cent organic growth trajectory,
Balance sheet trends including cash generation to pay down Encora-related debt, capital allocation priorities, including potential recalibration of dividend payout to accelerate deleveraging, and trends in long-duration unbilled revenues and progress on reducing reliance on structured deals, would also be keenly followed.