Coforge Q1 FY27: Consolidated PAT +110% YoY (adjusted) on Encora, margins flat, QoQ dips

Coforge's consolidated (primary) revenue for Q1 FY27 was ₹5,527.7 Cr, up 49.9% YoY and 24.2% QoQ — largely because this is the first full quarter consolidating Encora (acquired April 23, 2026), which contributed ₹957.9 Cr of revenue and ₹157.8 Cr of PAT for its post-acquisition stub period and isn't comparable to the year-ago base. Reported PAT (owners' share) was ₹518.6 Cr. On a raw basis — including the year-ago quarter's ₹70.2 Cr one-off discontinued-operations gain in the base — that's +63.4% YoY; on the continuing-operations basis the company itself uses, stripping that one-off from the base, growth is ~+109.8% YoY, matching the ~110% figure in Coforge's own results commentary. QoQ, PAT actually fell 15.3% from ₹612.3 Cr in Q4 FY26.

The margin story is more muted than the headline PAT growth suggests. Consolidated EBIT margin was 16.0% (₹882.2 Cr EBIT / ₹5,527.7 Cr revenue) — above the company's stated FY27 guidance of 15.5%, but down from 18.5% in Q4 FY26 and only marginally ahead of ~15.0% a year ago. Net profit margin was 9.4% (owners' PAT basis), essentially flat YoY (9.6% a year ago) but down sharply from 14.9% in Q4 FY26. The QoQ squeeze traces to a ₹63.3 Cr amortisation charge on intangibles created in the Encora business combination (a new, quarter-specific item), a net exceptional charge of ₹55.0 Cr (₹61.3 Cr Encora acquisition/integration costs and a ₹10.8 Cr provision against a bankrupt customer's receivable, partly offset by a ₹22.1 Cr forex gain on the Bolivian currency devaluation), and a normalising effective tax rate — Q4 FY26's unusually low tax (₹41.2 Cr on ₹625.0 Cr PBT, aided by a large deferred-tax credit) had inflated that quarter's PAT, making this quarter's QoQ decline look larger than the underlying operating trend.

The stock went into the print at ₹1,721, up 19.4% over the past month of trading.

For context: revenue is at a 6-quarter high.

No Street consensus PAT figure could be confirmed with certainty: one pre-result preview (Univest) cited a brokerage estimate near ₹510 Cr, but that reflected only the organic, pre-Encora business and isn't directly comparable to the reported, Encora-inclusive ₹518.6 Cr — so vs-Street is marked unknown rather than guessed. Against management's own guidance, this is a beat/on-track print: the prior concall had flagged a 14% FY26 EBIT target (Q4 expected at 15%) and an 'exceptional' FY27 with continued margin expansion; this quarter's 16.0% EBIT margin clears the company's subsequently-stated FY27 guidance of 15.5%, and EPS grew 67.2% YoY (₹12.34 vs ₹7.38) despite ~9.4 Mn new shares issued for Encora — consistent with management's claim the deal would be non-dilutive to EPS. By geography, Americas (₹3,417.8 Cr revenue, ₹606.1 Cr EBIT) and EMEA (₹1,492.4 Cr revenue, ₹255.7 Cr EBIT) led growth. The quarter also carried a cluster of corporate actions: an interim dividend of ₹4/share (record date August 3, 2026), re-appointment of OP Bhatt as Chairperson for a second five-year term, in-principle board approval to set up a China entity (financial details awaited), and the launch of 'Momentum AI' for enterprise AI execution. No standalone management press-release text was available in context to cross-check against these figures; external news coverage attributes to the CEO a view of FY27 as an 'exceptional year,' consistent with the prior concall's very-optimistic framing.