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Coforge Limited (COFORGE) Q2 2027 Earnings Report
IN:COFORGE Q2 2027 EPS Results
- Actual EPS
- INR 14.10
- Consensus EPS
- INR 14.83
- Beat/Miss
- Missed by -INR 0.73
- One Year Ago EPS
- INR 11.20
IN:COFORGE Q2 2027 Revenue Results
- Actual Revenue
- INR 61.71B
- Expected Revenue
- INR 63.00B
- Beat/Miss
- Missed by -INR 1.30B
- YoY Revenue Growth
- +54.82%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/23/2026
- Time
- Before Open
- Conference Call
- Friday, October 23, 2026
Coforge Limited's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
The call was strongly optimistic. Coforge reported double-digit consolidated growth, record large-deal signings, order intake above $1 billion, a record $2.4 billion executable order book, improved margins, growing AI adoption, and positive Encora integration progress. The company also raised FY2027 EBIT margin guidance and reiterated robust growth expectations. The main challenges were a 6.4% sequential decline in healthcare and high tech, flat sequential Encora revenue, industry pricing pressure, temporary integration-related billing delays, acquisition expenses above initial guidance, and current hedge losses. Overall, the positive operating and financial developments significantly outweighed the stated challenges.
Management raised FY 2027 consolidated EBIT margin guidance to 16% from 15.5%, expects reported Q4 EBIT of 17%, EBIT margins to be more than 17% going forward, and stated that if the company exits at 17%, the least it should deliver next year is 17%; EBITDA margin guidance remains 20.5%-21%, FCF-to-PAT guidance is 100% for FY 2027, tax on a steady state basis is 23%-24%, and EPS accretion is expected in FY 2027, with EPS potentially around INR 19-INR 20 in Q4. Management hopes to sign eight, if not more, large deals in Q3, expects Encora's revenue growth to mirror Coforge's growth from quarter three onwards, expects a material spike in consolidated gross margin starting Q4, expects exceptional expenses to be zero next quarter versus $5.9 million in the current quarter, and expects hedge losses of $7.1 million in Q3 and $1.2 million in Q4 on a mark-to-market basis, or $7.5 million next quarter and $1.2 million in Q4 assuming the dollar stays at where it is today.
- FY2027 EBIT Margin Guidance RaisedConsolidated FY2027 EBIT margin guidance was raised to 16% from 15.5%. Management also expects reported Q4 EBIT margin of 17%, with EBIT margins expected to be more than 17% going forward.
- Strong Q2 Revenue GrowthQ2 FY2027 consolidated revenue growth was 10.9% sequentially in constant currency, 10.1% in U.S. dollar terms, and 11.6% in Indian rupee terms. Consolidated revenue stood at $652.2 million, while revenue on a constant-currency basis was reported at approximately $650 million.
- Record Large Deal SigningsCoforge signed eight large deals in Q2, the highest number signed in any quarter in its history. Management said it hopes to sign eight or more large deals in Q3, which is the shortest quarter of the year.
- Order Intake Exceeded $1 BillionQuarterly order intake exceeded $1 billion for the second time in the company's history, increasing 51% quarter over quarter and 102% year over year. The intake included $455 million from North America, $485 million from Europe, and $101 million from the rest of the world.
- Broad-Based Deal and Geographic MixThe eight large deals included two from BFSI, three from the public sector, two from high tech, and one from retail. Geographically, three came from North America, four from Europe, and one from the rest of the world.
- Record Executable Order BookThe next 12-month executable order book reached an all-time high of $2.4 billion, increasing 45% year over year from $1.64 billion and strengthening management's stated growth visibility for the rest of FY2027.
- Top-Account Growth and Key Client MilestoneBoth the top 10 and top 20 accounts were growing at 20% or more year over year. A second Coforge client crossed a $100 million annualized relationship run rate starting in Q2.
- Industry Growth LeadershipManagement expects Coforge to be the industry's growth leader for the third consecutive year and reiterated its expectation of best-in-class growth on a consolidated basis, including Encora, in Q3 and beyond.
- Strong Segment and Geographic PerformanceOn an organic constant-currency sequential basis, BFS grew 8.3%, insurance grew 3.6%, travel, transportation and hospitality grew 1.8%, government outside India grew 20.8%, and emerging verticals grew 2.3%. The Americas grew 4.1% and the rest of the world grew 16.3% sequentially.
- AI-Led Businesses Represent 86% of RevenueAI-led engineering, data integration, and cloud contributed 86% of consolidated revenue during the quarter, reflecting the increasing scale of these businesses.
- AI Adoption at ScaleCoforge was running more than 520 AI engagements for more than 225 clients, with over 260 agents deployed in live operations. AI adoption was described as broad-based across BFS, public sector, travel, insurance, engineering, service desks, underwriting, KYC, and other business processes.
- Enterprise AI Platforms and InvestmentsCoforge continues to invest in and deploy Coforge Nuuron, Forge-X, CodeInsightAI, EvolveOps.AI, Momentuum Blue, Mod Squads, and AI Launchpad. AI Launchpad was described as an open-weight AI ecosystem designed to help enterprises select, adapt, govern, and deploy open-weight models at scale.
- Demonstrated Client AI OutcomesFor a global HR solutions provider, an AI quote agent reduced turnaround time from about three weeks to less than five days, while an AI customer-service assistant handled more than half of inbound service queries. For a North American insurer, AI modernization made delivery 30% faster. For a global pharmaceutical company, AI work released approximately 15,000 business hours, including more than 1,800 hours from monthly reporting.
- Large-Scale AI-Infused Modernization ProgramThe largest legacy modernization program described involves migrating 12 million lines of code from a machine-language platform to Google Cloud over 4.5 years, with the program fully underlaid by Copilot and Coforge's Forge-X engineering asset platform.
- Encora Integration and Margin ProgressManagement said Encora's margin expansion was ahead of the acquisition plan and that the two teams had come together well. Encora's revenue was approximately $147 million-$148 million in the current quarter and was described as largely flat sequentially, in line with expectations; management expects Encora's growth to mirror Coforge's growth from Q3 onward.
- Operating Efficiency and Margin LeversCombined G&A improved to 6.3% of revenue from 6.6% in the previous quarter following a 40% reduction in Encora G&A in Q1. Management cited AI efficiencies in fixed-price contracts, G&A functions, and operating leverage from largely fixed intangible amortization as further margin levers.
- Healthy Cash Flow and EPS ProgressFree cash flow was $53.8 million, representing 89% FCF-to-PAT conversion in the quarter and 92% for the first half. Management remains confident in delivering 100% FCF-to-PAT for FY2027. EPS increased to INR 13.3 from INR 12.3 in the previous quarter.
- Workforce Growth and Low AttritionCoforge added 1,137 employees, taking total headcount to 47,365. Utilization was 82.4%, and last-12-month attrition remained at 10.4%, described as among the lowest in the industry.
- Partnership Expansion and Industry RecognitionCoforge joined the AWS Forward Deployed Engineer pilot, with AWS investing to grow the footprint, and expanded its Pega partnership to build and jointly market Pega-powered offerings under the Coforge brand. Whitelane, HFS Research, and NelsonHall provided multiple recognitions during the quarter.
- Expected Reduction in Below-EBIT ChargesManagement stated that exceptional expenses of $5.9 million in the current quarter are expected to be zero in Q3. Hedge losses were expected to decline from approximately $10.2 million in Q2 to $7.1 million in Q3 and $1.2 million in Q4, with management also stating that Q4 EPS could reach approximately INR 19-INR 20.
IN:COFORGE Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2027 (Q3) | 15.19- | 7.38 | ― | ― |
| Oct 23, 2026 | 2027 (Q2) | 14.8314.10 | 11.2 | 25.89% (+2.90) | |
| Jul 27, 2026 | 2027 (Q1) | 13.7712.34 | 9 | 37.11% (+3.34) | |
| May 05, 2026 | 2026 (Q4) | 13.1218.20 | 7.8 | 133.33% (+10.40) | |
| Jan 22, 2026 | 2026 (Q3) | 10.957.38 | 6.39 | 15.53% (+0.99) | |
| Oct 24, 2025 | 2026 (Q2) | 10.6611.20 | 7.66 | 46.21% (+3.54) | |
| Jul 23, 2025 | 2026 (Q1) | 9.829.00 | 4.16 | 116.55% (+4.84) | |
| May 05, 2025 | 2025 (Q4) | 8.427.80 | 7.24 | 7.73% (+0.56) | |
| Jan 22, 2025 | 2025 (Q3) | 7.946.39 | 7.72 | -17.25% (-1.33) | |
| Oct 22, 2024 | 2025 (Q2) | 7.097.66 | 5.92 | 29.39% (+1.74) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
