The company's board also gave in-principle approval to set up an entity in China to expand its operations, with further details to be shared later. The announcement came alongside the company's financial results for the quarter ended 30 June 2026.
On a consolidated basis, the company's net profit rose 63.4% YoY to Rs 518.60 crore, while it declined 15.3% sequentially.
Gross revenue increased 49.2% YoY and 24.2% QoQ to Rs 5,527.70 crore in the June 2026 quarter. In US dollar terms, revenue stood at $592.2 million, up 33.3% YoY and 21.1% QoQ.
Gross profit rose 50.4% YoY and 23.8% QoQ to Rs 1,893.40 crore. Gross margin improved to 34.3% from 34.0% in Q1 FY26.
EBITDA climbed 73.6% YoY and 22.5% QoQ to Rs 1,123.30 crore. EBITDA margin expanded 285 basis points YoY to 20.3%.
Profit before tax stood at Rs 702.10 crore in Q1 FY27, up 92.1% YoY and 12.3% QoQ.
Total direct costs rose 48.6% YoY to Rs 3,634.30 crore, led by a 51.8% increase in direct people costs to Rs 2,620.80 crore and a 52.4% rise in subcontractor costs to Rs 592.10 crore. Selling, general and administration expenses increased 25.9% YoY to Rs 770.10 crore, while depreciation and amortisation expense rose 17.2% YoY to Rs 129.40 crore.
During the quarter, Coforge secured $691 million in total contract value (TCV) order intake. Its executable order book for the next 12 months stood at $2.23 billion, up 27% QoQ, while the company signed four large deals across North America, Europe and Latin America. Last twelve months attrition declined to 10.4% from 10.8% in the previous quarter.
Sudhir Singh, chief executive officer and executive director, said the company's strong quarterly performance reflected its differentiated capabilities and execution. He said 86% of revenue now comes from AI-led engineering, data and cloud services, while the robust order book, expanding AI-led pipeline and full operational integration of Encora position the company for another year of industry-leading growth. He added that EBIT margin expanded 414 basis points YoY and EBITDA margin widened 285 basis points due to AI adoption across client delivery and internal operations.
The board also recommended an interim dividend of Rs 4 per share. The record date for the dividend has been fixed as 3 August 2026.
Coforge is an AI-focused engineering services company that combines AI capabilities with industry expertise to develop enterprise solutions. The company integrates AI agents with its delivery teams to improve operational efficiency and focuses on secure, governed AI deployments.
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