Coforge Revenue Climbs 54% on Encora Deal; Profit Up 42%
Coforge's September-quarter revenue rose 53.6% after buying Encora, while profit grew 42%, though higher debt and integration costs weigh on the outlook.
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what happened
According to Moody's, Coforge posted September-quarter revenue of Rs 6,170.8 crore, up 53.6% year on year, driven mainly by its purchase of US digital engineering firm Encora, which was completed on April 23, 2026.
Profit attributable to shareholders climbed 56.5% to Rs 588.1 crore, while profit after tax from continuing operations rose 42.2% to Rs 604.9 crore. Pre-tax profit before exceptional items grew 53.1%. Borrowing costs, however, jumped to Rs 108 crore from Rs 40.9 crore, and net exceptional charges of Rs 55.7 crore were mostly acquisition and integration expenses.
The Americas generated about 63% of revenue and expanded 67.8%, whereas the rest of the world delivered an EBIT margin of only 0.9%.
why it matters
For investors, the balance sheet is the main story: total assets rose to Rs 34,780 crore from Rs 14,880 crore in March, and net debt sits near Rs 3,800 crore before lease liabilities. Basic EPS grew just 18.4% because the share count expanded, and receivables absorbed about Rs 1,020 crore in the first half.
market impact
Indian IT services and Coforge shares: the deal lifts revenue, but debt and share dilution limit per-share earnings gains
tags
instruments
sources
- Coforge Q2 Revenue Jumps 54% On Encora Acquisition; Profit Rises 42% — Moody's, 23 October 2026 at 19:39 UTC
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