Coforge has delivered a powerful second-quarter performance, with revenue growing 53.6% year-on-year and profit rising 56.5%. But the biggest development may be management’s decision to raise its full-year EBIT margin guidance while reporting a record eight large deal wins in a single quarter.

The IT services company announced its Q2 FY27 results on October 23, 2026, highlighting strong revenue growth, improving profitability and continued demand for its AI-led engineering services.

Coforge reported quarterly revenue of ₹6,170.8 crore, compared with approximately ₹4,017.5 crore in the corresponding quarter last year. Revenue increased 53.6% in Indian rupee terms and 40.1% in US dollar terms, reaching $652.2 million.

The difference between rupee and dollar growth reflects currency translation effects, making it important for investors to distinguish reported growth across currencies.

Sequentially, revenue grew 10.1% in US dollar terms, indicating continued business momentum compared with the previous quarter.

However, the company’s sequential organic growth in constant currency was 3.8%, a more useful measure for evaluating underlying business expansion after adjusting for acquisitions and currency movements.

This distinction matters because headline revenue growth can include contributions from acquired businesses rather than purely organic demand.

Coforge reported EBITDA of ₹1,269.7 crore, representing a 67.3% year-on-year increase in rupee terms. Its EBITDA margin improved to 20.6%, an expansion of 168 basis points compared with the year-earlier quarter.

The improvement indicates that EBITDA grew faster than revenue, reflecting stronger operating profitability at the reported company level. EBIT increased 67.8% year-on-year to ₹984.7 crore.

The EBIT margin reached 16%, representing an improvement of 134 basis points from the corresponding quarter last year. Profit after tax increased 56.5% to ₹588.1 crore, compared with approximately ₹375.8 crore in Q2 FY26.

These figures show that revenue expansion was accompanied by strong profit growth rather than being driven entirely by higher sales volumes. However, the most important forward-looking development concerns management’s profitability expectations.

Coforge has raised its FY27 EBIT margin guidance from 15.5% to 16%. The revised guidance reflects management’s confidence in maintaining operating efficiency while continuing to pursue growth opportunities.

Chief Executive Officer and Executive Director Sudhir Singh also indicated that the company expects to improve its EBIT margin further to 17% in the next financial year.

This 17% figure represents management’s forward-looking expectation rather than an achieved margin. The company aims to position itself among the top three scaled IT services firms on profitability while maintaining its growth momentum.

For investors, this ambition creates an important benchmark against which future quarterly results can be assessed. Another standout feature of the quarter was Coforge’s deal-winning performance.

The company signed eight large deals during Q2 FY27, the highest number of large deals secured in a single quarter in its history. These contracts were spread across North America, Europe and Australia, highlighting the company’s geographical reach.

Total contract value of new orders signed during the quarter reached $1.04 billion. The next twelve months’ executable signed order book stood at $2.38 billion, representing 45% year-on-year growth.

This provides substantial revenue visibility, although signed orders do not automatically translate into revenue or profit within the same quarter.

The pace of conversion will depend on project implementation schedules, customer spending decisions and delivery execution.

The size of the order book also indicates that Coforge continues to secure business commitments despite uncertainty surrounding global enterprise technology spending.

However, investors should distinguish the total contract value of new orders from the portion scheduled for execution over the next twelve months.

The company’s reported last-twelve-month attrition rate remained at 10.4%, unchanged from the previous quarter. Stable attrition can support delivery continuity and reduce the disruption associated with replacing experienced employees.

Coforge also announced several initiatives aimed at expanding its AI engineering capabilities. The company launched Momentuum Blue, a specialised Forward Deployed Engineers operating unit designed to work directly within customer teams.

The initiative focuses on converting enterprise knowledge and operational requirements into production systems that deliver measurable business outcomes.

This approach reflects growing enterprise interest in deploying artificial intelligence within practical business processes rather than limiting investment to experimental projects.

Coforge also expanded its Kraków Engineering Center in Poland, strengthening its nearshore engineering capabilities for European and global clients.

The expansion may help the company serve customers requiring closer geographical collaboration, although the announcement does not quantify its expected revenue contribution.

Another development was the introduction of CXNova, an agentic customer experience orchestration platform. The platform is intended to support personalised customer engagement and continuous optimisation across enterprise customer touchpoints.

Coforge also reported achieving AWS AI Competency, recognising its demonstrated capabilities in delivering AI solutions using Amazon Web Services technologies.

The company received Zscaler Delivery Services Authorization, supporting its credentials in cybersecurity-related implementation and delivery services.

These initiatives strengthen Coforge’s positioning in AI engineering, cloud infrastructure and cybersecurity, although their eventual financial contribution remains dependent on customer adoption and commercial execution.

The company also received recognition from several industry research organisations across AI-enabled cloud infrastructure, application development, quality engineering and managed services.

Such recognitions may support business development efforts, but they should not be treated as guarantees of future contract wins.

For investors comparing Coforge with larger Indian IT companies such as TCS, Infosys, HCLTech and Wipro, the most relevant indicators are organic constant-currency growth, deal conversion and operating margin sustainability.

Coforge’s reported growth is strong, but acquisition contributions and differences in business mix must be considered before making direct comparisons with peers.

The company has not provided analyst consensus estimates in the supplied results announcement, so it would be premature to classify the performance as an earnings beat or miss without separately verified expectations.

The key risks include slower client spending, delays in converting large deals into revenue, wage inflation, integration costs and potential pressure on project profitability.

Foreign exchange movements could also influence reported financial performance because Coforge earns substantial revenue from international markets.

Investors should monitor whether the company’s 3.8% sequential organic constant-currency growth can be sustained as new contracts move into execution. The revised 16% FY27 EBIT margin guidance will be another important benchmark for the coming quarters.

The larger question is whether Coforge can maintain its rapid growth while progressing towards management’s 17% EBIT margin expectation for the following year.

Coforge’s Q2 FY27 results demonstrate strong business momentum, supported by record large-deal activity, an expanding signed order book and improving margins.

The next phase of its growth story will depend on converting these commitments into profitable revenue while sustaining organic growth.