Coforge Q2 net profit jumps 56.5% to 588 crore on Encora deal

what happened

Indian IT services firm Coforge reported a 56.5% year-on-year rise in net profit, to 588.1 crore for the second quarter of fiscal 2027. According to Moody’s, the main driver was a full-quarter contribution from Encora, an engineering services firm Coforge acquired for $2.35 billion. Net profit rose 13.4% from the previous quarter.

Revenue for the September quarter climbed 53.6% year on year and 11.6% sequentially, to 6,170.8 crore. In dollar terms, revenue reached $652.2 million, up 10.1% from the prior quarter in constant currency. Chief executive Sudhir Singh said: “The demand slowdown is largely because procurement-driven RFPs have slowed down. The intensity of the ask around delivering AI-led transformation for enterprises is only getting stronger.” Deal wins by total contract value came to $1.04 billion, versus $691 million in the previous quarter and $514 million a year earlier.

why it matters

The report matters as a sign that integrating a large acquisition is on track: management said Encora’s margin expansion is ahead of plan and that revenue growth should mirror Coforge’s from the third quarter. Demand commentary also matters for the broader Indian IT services sector, which is sensitive to client procurement trends.

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