EL7.AI
StocksMedium•27 October 2026•
4 min read

Coforge Revenue Jumps 53.6%, Company Raises Operating Margin Target to 16%

Key Facts

1Coforge’s second-quarter revenue was 61,708 million rupees, up 53.6% year on year in rupees and 40.1% in dollars.
2Net profit was 5,881 million rupees, up 56.5% in rupees and 42.7% in dollars.
3The company raised its fiscal 2027 EBIT margin guidance to 16% from 15.5%.
4The executable order book for the next 12 months was 2.38 billion dollars, up 45% year on year.

Coforge announced on October 23 its results for the quarter ended September 30, reporting revenue of 61,708 million rupees, up 53.6% year on year in rupees and 40.1% in dollars. Net profit was 5,881 million rupees, up 56.5% in rupees and 42.7% in dollars, according to the company statement. The results were for the second quarter of fiscal 2027, with the company raising its fiscal-year operating margin guidance to 16% from 15.5%. The difference between profit and revenue growth rates in rupees and dollars reflects the presentation of results in two different currencies. CEO Sudhir Singh also cited dollar revenue growth of 10.1% quarter on quarter and 40.1% year on year, alongside quarterly organic growth of 3.8% on a constant-currency basis.

The comparison between reported revenue growth and quarterly organic growth highlights a gap reflecting different measurement bases: dollar revenue rose 10.1% from the previous quarter, while constant-currency organic growth was 3.8%. Year on year, dollar revenue growth reached 40.1%, while rupee revenue grew 53.6%. Singh said the company achieved dollar growth of 10.1% quarter on quarter and 40.1% year on year, alongside organic growth. This detail places reported performance in a broader context than the total revenue figure, while highlighting the contribution of organic growth in the quarter. The open source did not provide a verified geographic breakdown of revenue, so the increase is not attributed to specific regions.

On operating profitability, earnings before interest and taxes were 9,847 million rupees in the quarter, up 67.8% year on year in rupees and 53% in dollars, with a margin of 16%, an increase of 134 basis points year on year. Earnings before interest, taxes, depreciation and amortization were also 12,697 million rupees, up 67.3% in rupees and 52.6% in dollars, with a margin of 20.6% after an improvement of 168 basis points. Singh said in the company statement: "We are raising our fiscal 2027 EBIT margin guidance from 15.5% to 16%." He added that the company expects to raise the margin to 17% in the following year. The new full-year guidance is at the margin level the company recorded in the quarter, while comparative profitability data point to year-on-year margin expansion.

On demand, the value of new contracts was 1.04 billion dollars during the quarter, while the executable order book for the next 12 months reached 2.38 billion dollars, up 45% year on year. The company announced that it had signed 8 large deals, its highest number in a single quarter, covering North America, Europe and Australia. The order book indicates the volume of business the company expects to execute in the coming period, while the value of new contracts combines the deals signed during the quarter. The company’s announcement linked the increase in its fiscal 2027 margin target to the quarterly results and its expectations for the following year, while the figures showed an expansion in orders and deals. The source does not specify the execution dates of each contract, but gives a 12-month horizon for the executable order book.

The company’s operational initiatives included the launch of Momentuum blue, a specialized unit for engineers working within client teams, and the introduction of the CXNova platform to orchestrate agentic customer experience. Coforge expanded its engineering center in Krakow to serve as an artificial intelligence engineering and nearshore delivery hub for European and global clients. On the workforce front, the 12-month rolling attrition rate was 10.4%, unchanged from the previous quarter. These indicators provide some context for the expansion of operational capabilities through a unit working with client teams and a European engineering and delivery center. The statement did not identify a separate financial impact from these initiatives in the quarterly results.

The results followed a first quarter of fiscal 2027 in which the company reported revenue of 55,277 million rupees, up 49% year on year in rupees and 33% in dollars, and net profit of 5,186 million rupees, up 110% in rupees and 46% in dollars. In that quarter, the EBIT margin was 16%, an increase of 414 basis points year on year. The comparison shows that second-quarter net profit exceeded its first-quarter level, while annual growth rates differed between the periods. The board also recommended an interim dividend of 4 rupees per share in the first quarter and set August 3, 2026, as the record date. After the second-quarter results were announced, Jefferies raised its price target to 2,230 rupees from 2,040 rupees and maintained its Buy rating, while JPMorgan raised its target to 2,150 rupees from 1,850 rupees and maintained its Overweight rating.