Coforge shares slipped 0.73% to ₹1,900 on the BSE after the IT services major reported Q2 FY27 results that landed below Wall Street expectations. Net profit climbed 13.4% quarter-on-quarter to ₹588 crore, falling short of the CNBC-TV18 consensus of ₹629 crore. Revenue also missed the mark at ₹6,170.8 crore, up 11.6% QoQ, against an expected ₹6,363 crore.
The bottom line still showed underlying strength. EBITDA hit ₹1,269.7 crore, surging 67.3% year-on-year in rupee terms. That pushed the EBITDA margin up 168 basis points to 20.6%, a clear sign of operating leverage kicking in despite the revenue miss.
What really caught traders' attention is the forward-looking data. The executable order book for the next 12 months jumped 45% YoY to $2.38 billion. Coforge signed eight large deals in the quarter—the highest tally in a single period—across North America, Europe, and Australia. CEO Sudhir Singh pointed to this pipeline as the reason for the guidance hike.
Singh said the firm is raising its FY27 EBIT margin guidance from 15.5% to 16%. "We expect to further improve our EBIT margin to 17% next year and will be targeting to be amongst the top three scaled IT services firms on margins while maintaining our growth momentum," he stated. The last twelve-month attrition rate remained steady at 10.4%, suggesting no hidden talent drain.
Strategically, the company launched Momentuum Blue, a Forward Deployed Engineers unit, and expanded its Kraków Engineering Center in Poland as an AI hub. Investors will now watch if this 45% order book growth translates into the promised 17% EBIT margin by FY28, keeping an eye on upcoming quarterly deliverables.