$COFORGE Coforge has reported a blockbuster Q1 FY27 with revenue up 49% YoY

Coforge has reported a blockbuster Q1 FY27 with revenue up 49% YoY to ₹5,528 crore and net profit surging 110% YoY to ₹519 crore. The company announced an interim dividend of ₹4 per share (record date: August 3, 2026), and its stock jumped nearly 10% following the results. 📊 Key Financial Highlights (Q1 FY27) Revenue: ₹5,527.7 crore (up 49% YoY) Net Profit (PAT): ₹518.6 crore (up 110% YoY) EBIT: ₹882.2 crore (up 101% YoY) EBIT Margin: 16% (expanded 414 bps YoY) EBITDA Margin: 20.3% (expanded 285 bps YoY) US Dollar Revenue: $592.2 million (up 33% YoY) 📈 Market Reaction Share Price: Coforge stock surged 7–10% post-results, hitting highs of ₹1,674 on BSE. Brokerage View: Morgan Stanley maintained an Overweight rating with a target of ₹1,700. Nifty IT Index: Jumped 3% as Coforge’s strong earnings boosted sector sentiment. 🔑 Strategic Developments Encora Acquisition: Fully integrated, contributing ₹957.9 crore revenue and ₹157.8 crore PAT in Q1. Order Intake: $691 million in new deals. 12-Month Order Book: Record $2.23 billion, up 44% YoY, ensuring strong revenue visibility. AI-Led Services: 86% of revenues now come from AI-driven engineering, data, and cloud services. 💡 Dividend & Shareholder Update Interim Dividend: ₹4 per share. Record Date: August 3, 2026. Payout reflects confidence in cash flows and growth momentum. ⚠️ Risks & Challenges Integration Costs: ₹61.3 crore related to Encora acquisition impacted margins. Legal & Receivable Provisions: ₹15.8 crore in one-off costs. Debt: Raised $550 million at 4.6% interest for Encora deal, increasing leverage. 📌 Quick Take for Investors Strong Growth Visibility: Record order book and AI-led services position Coforge as a sector leader. Stock Outlook: With brokerages bullish and margins expanding, Coforge is set for continued upside in FY27. Dividend Sweetener: Interim payout adds shareholder value.