Coforge reported a 56.5% increase in net profit to ₹588.1 crore for the September quarter as new deal wins surpassed $1 billion. The IT services firm lifted its full-year operating margin guidance to 16%. Despite the strong quarterly numbers, the stock closed marginally lower at ₹1,900.50, reflecting market caution.
Coforge delivered strong financial results for the second quarter, reporting a consolidated net profit of ₹588.1 crore. This reflects a 56.5% increase compared to the same period last year. Revenue for the period reached ₹6,170.8 crore, representing a 53.6% rise from the previous year. In US dollar terms, the revenue grew 40.1% to $652.2 million, highlighting the company's ability to scale its business during the quarter.
A key driver of this performance has been the expansion of the company's order book. During the quarter, the firm secured eight large deals, pushing its total fresh order intake beyond the $1 billion milestone for the first time. This surge in contract wins has strengthened the executable order book for the next 12 months to $2.38 billion, a 45.4% increase over the previous year. Management noted that the acquisition of Encora, which was finalized earlier this year, has been a significant contributor to these results, helping to broaden the company's service capabilities.
Following the strong growth momentum, the company has revised its EBIT margin guidance for the 2027 fiscal year to 16%, up from the previous target of 15.5%. The management team also indicated plans to aim for a 17% margin in the following fiscal year. To further support these growth ambitions, the board has given in-principle approval to form a new US-based entity named Momentuum Blue. This unit is intended to focus on building a specialized workforce of forward-deployed engineers to cater to evolving client needs.
Despite the positive quarterly metrics, the company's stock closed marginally lower at ₹1,900.50 on the National Stock Exchange. In the IT services sector, stock reactions often depend on whether results meet high market expectations, and even with strong growth, investors often look for signs of sustainable margin expansion. Integrating large acquisitions like Encora also remains a task that requires careful execution, as blending different corporate cultures and service delivery models can present operational challenges.
Looking ahead, investors will be monitoring how effectively the company executes its $2.38 billion order book and whether it can maintain its improved profit margins in a competitive IT environment. Tracking the progress of the new US entity, Momentuum Blue, and its impact on the company's long-term service delivery will also be important for stakeholders as the company moves toward its 17% margin target for the next fiscal year.