Archive · 28 Jul 2026
Coforge Q1 Profit Dips Due to Acquisition Costs
Coforge, an IT company based in Noida, recently reported its financial results for the first quarter of the fiscal year 2027.
While their profit decreased by 15.3% compared to the previous quarter, their revenue increased by 24.2%.
This drop in profit was mainly due to one-time costs related to the acquisition of another company called Encora, as well as some legal expenses and provisions.
However, when compared to the same quarter last year, their profit actually increased by 63.4%.
The company's operating margin improved to 16%, which is better than they had planned.
They also secured new orders worth $691 million and have a strong pipeline of future projects.
The CEO is optimistic about the company's future, highlighting their strong deal pipeline and the benefits of AI in their operations.
Despite some challenges like AI-led deflation, the company is working on significant projects and has a robust employee base with a low attrition rate.
They have also declared an interim dividend of Rs 4 per share.
Coforge reported a 15.3% sequential decline in net profit for Q1 FY27 to Rs 519 crore due to one-time acquisition charges.
Revenue grew by 24.2% sequentially to Rs 5,528 crore.
Year-on-year net profit increased by 63.4% from Rs 228.5 crore.
Operating margin expanded to 16%, ahead of the company’s FY27 guidance of 15.5%.
Order intake stood at $691 million TCV with an executable order book of $2.23 billion for the next twelve months.
- Who
- Coforge, a mid-cap IT firm headquartered in Noida
- What
- Reported a 15.3% sequential decline in net profit for Q1 FY27 due to one-time acquisition charges, while revenue grew by 24.2%
- When
- April-June quarter FY27
- Where
- Noida, India
- Why
- One-time costs including a Rs 61.3 crore charge for the Encora acquisition, Rs 5 crore for legal expenses, and a Rs 10.8 crore provision against a customer receivable after a bankruptcy filing
Optimistic Outlook
Challenges Ahead
Growth Prospects
Optimistic Outlook
Coforge's CEO highlights strong deal pipeline and AI-driven growth as positive indicators for future performance.
Challenges Ahead
AI-led deflation and the need for legacy modernization present ongoing challenges.
- Net Profit (Q1 FY27)
- Rs 519 crore
- Revenue (Q1 FY27)
- Rs 5,528 crore
- Year-on-Year Profit Growth
- 63.4%
- Operating Margin
- 16%
- Order Intake (Q1 FY27)
- $691 million TCV
- Executable Order Book
- $2.23 billion
- Attrition Rate
- 10.4%
- Interim Dividend
- Rs 4 per share