Coforge Limited's consolidated net profit attributable to owners increased by 63.4% year-on-year, reaching INR 518.6 crore in the quarter ending June 30, 2026. Meanwhile, operating revenue grew by 49.2%, amounting to INR 5,527.7 crore.
Encora's Contribution to Results
The comparison of results was complicated by Coforge's acquisition of Encora, which was consolidated from May 1. During the period after the acquisition, Encora contributed INR 957.9 crore in revenue and INR 157.8 crore in profit after tax. The report noted that the current quarter cannot be compared with the same period a year ago.
Encora accounted for 17.3% of total revenue and 29.7% of the group's profit after tax for this quarter.
Expansion of EBIT Margin
Earnings Before Interest and Taxes (EBIT), which management uses to assess segment performance, rose by 101.5%, reaching INR 882.2 crore compared to INR 437.9 crore. The EBIT margin expanded by 414 basis points, rising from 11.8% to 16.0%.
Total expenses increased by 43.9%, totaling INR 4,797.4 crore. Among these, the growth in employee benefits expenses was 41.1% (to INR 3,125 crore), professional fees increased by 45.7% (to INR 700.2 crore), and depreciation and amortization by 51.4% (to INR 241.1 crore). Financial costs increased by 87.4%, reaching INR 86.6 crore.
Unexpected Expenses and Profit
Profit before exceptional items and taxes increased by 94.0%, amounting to INR 757.1 crore. The group recorded net exceptional expenses of INR 55 crore, higher than INR 24.8 crore the previous year, resulting in a profit before tax of INR 702.1 crore.
These exceptional items included INR 61.3 crore in costs for the acquisition and integration of Encora, INR 5 crore in legal expenses related to cybersecurity, and a provision of INR 10.8 crore against a client's debt following bankruptcy filing. These amounts were partially offset by a foreign exchange gain of INR 22.1 crore resulting from the devaluation of the Bolivian currency.
Total consolidated profit was INR 531.7 crore, which is 49.2% more than INR 356.4 crore. The figure for the current quarter relates exclusively to continuing operations, whereas the total figure for the last year included INR 70.2 crore in profit from discontinued operations.
Profit attributable to non-controlling interests decreased to INR 13.1 crore from INR 39 crore. Basic earnings per share for both continuing and discontinued operations rose to INR 12.34 from INR 9.47.
Regional Revenue Figures
Revenue from America increased by 63.4%, reaching INR 3,417.8 crore, and EBIT in the region more than doubled to INR 606.1 crore. Revenue from Europe, Middle East, and Africa grew by 33.6% to INR 1,492.4 crore, while revenue from the rest of the world business increased by 24.7% to INR 617.5 crore.
Dividends and Encora Acquisition
Coforge completed the acquisition of Encora on April 23, 2026. The allocation of the purchase price was preliminary and resulted in goodwill of INR 12,089 crore. The cash component of the deal was financed through US dollar borrowings of INR 550 million.
The Board of Directors announced an interim dividend of INR 4 per share for the financial year 27, setting August 3, 2026, as the record date. The dividend will be paid within 30 days of its announcement.
