Coforge shares slipped 0.43% to ₹1,900.50 on Friday after the company unveiled its Q2 FY27 results. The IT services firm recorded a 10.9% quarter‑on‑quarter revenue jump in constant currency, trailing the 12.3% estimate from analysts.
The earnings release highlighted an EBIT margin of 16%, matching consensus and nudging the FY27 guidance up to 16% from 15.5%. In constant‑currency terms, organic revenue rose 3.8%, comfortably inside the 3.5%‑4.5% range forecast.
Order intake surged to $1.04 billion, a 50.6% increase over the $691 million seen in Q1. The uptick, driven largely by the Encora acquisition, bolstered the executable order book by 7% qoq, giving the company a robust pipeline.
Broker reactions remain split. Jefferies lifted its EPS estimates by 3%‑5% and reiterated a 14% CAGR in organic revenue, while Citi maintained a sell stance with a ₹1,750 price target, citing the 8% shortfall in net income versus its ₹6.8 billion estimate.
Net income of ₹6.3 billion fell 8% short of UBS’s forecast, with exceptional integration costs weighing on earnings. However, operating cash flow stood at $53.8 million, equating to 89% of profit after tax.
Looking ahead, Coforge has raised its FY27 EBIT margin guidance to 16% and is targeting a 17% exit margin in Q4. Analysts note the company’s 45.4% YoY jump in the executable order book and a 9% YoY headcount expansion as key growth levers. The stock's 15% YTD gain positions it for a potential rebound if the company can translate its pipeline into earnings.