> ## Content Index > Fetch the complete content index at: https://www.moatmarginresearch.com/llms.txt > Use this file to discover other available public pages before exploring further. # Coforge Q2: Encora Lifts Revenue 54%, EPS 18% - URL: https://www.moatmarginresearch.com/coforge-q2-encora-growth-eps/ - Published: 2026-10-24T06:32:56.000Z - Updated: 2026-10-24T06:32:56.000Z - Description: Coforge's revenue rose 53.6% in Q2 FY27 with Encora inside and it raised its margin guide to 16%, but borrowings and share count rose, so EPS grew 18.3%. - Author: A K Karthikeyan - Tags: Moat Insights **Coforge's revenue was ₹61,708 million in the September quarter, up 53.6% from a year earlier, or 40.1% in dollars to US$652.2 million. Most of that jump is the acquired Encora business: organic constant-currency growth was 3.8% in the quarter. The company raised its FY27 EBIT margin guidance to 16% from 15.5% and signed eight large deals. Paying for Encora shows up elsewhere: goodwill has roughly quadrupled and borrowings are about nine times last year's (our arithmetic), and earnings per share rose 18.3% while profit rose 56.5%.** ## The quarter in numbers | Q2 FY27 | Value | Change | Source | | -------------------------------- | ---------------------------------- | ------------------- | ------ | | Revenue | ₹61,708 million / US$652.2 million | +53.6% / +40.1% YoY | \[PR\] | | Organic constant-currency growth | 3.8% | QoQ | \[FS\] | | EBIT margin | 16.0% | +134 bps YoY | \[PR\] | | PAT | ₹5,881 million | +56.5% YoY | \[PR\] | | Basic EPS | ₹13.3 | +18.3% YoY | \[FS\] | | Order intake | US$1.04 billion | — | \[PR\] | | 12-month executable order book | US$2.38 billion | +45% YoY | \[PR\] | In rupees, quarterly revenue is about ₹6,171 crore (our arithmetic). Free cash flow was 89% of profit (\[FS\]). ## What Encora changed on the balance sheet | INR million | 30 Sep 2026 | 30 Sep 2025 | Source | | ---------------------------------------- | ----------- | ----------- | ------ | | Goodwill | 165,354 | 41,134 | \[FS\] | | Intangible assets of acquired businesses | 56,036 | 12,944 | \[FS\] | | Borrowings | 56,457 | 6,082 | \[FS\] | | Equity share capital | 886 | 669 | \[FS\] | The fact sheet notes that the quarter "Included integration related expenses for Encora" (\[FS\]). Amortisation of acquired intangibles rose to ₹1,453 million from ₹468 million a year ago (\[FS\]); the board outcome refers to "the date of acquisition of Encora by Coforge" (\[BM\]). ## Moat and margin **Focus moat: winning large deals.** Eight large deals in one quarter, "the most the firm has ever signed in a single quarter" in chief executive Sudhir Singh's words, and a 95.5% repeat-business ratio point to sticky client relationships (\[PR\], \[FS\]). The top 10 clients, 26.4% of revenue, grew 20.0% (\[FS\]). **Margin: guided up.** The EBIT margin was 16.0%, up 134 basis points from a year ago, and Singh says "We expect to further improve our EBIT margin to 17% next year" (\[PR\]). That is after a sharp rise in amortisation of acquired intangibles, which sits above the EBIT line in Coforge's table (\[FS\]). **Per share, less.** Profit rose 56.5% but EPS 18.3% (\[PR\], \[FS\]): more shares are sharing the profit, and interest on new debt is a new cost. For a shareholder, the per-share number is the one that counts. **A US listing step.** Both the press release and the fact sheet say "A Registration Statement on Form F-1 relating to certain securities of Coforge has been filed with the U.S. Securities and Exchange Commission but has not yet become effective" (\[PR\]). The filings do not say what is being registered. **MoatSCORE** (Moat Screener, first pass): Coforge 5.10, AMBER+. For comparison, Persistent Systems 5.11 and Mphasis 5.10 (\[MS\]). ## The bear case - **Organic growth is modest**: 3.8% in the quarter, against reported growth of 10.1% (\[FS\]). - **Leverage has jumped**: borrowings of ₹56,457 million against ₹6,082 million a year ago (\[FS\]). - **Per-share growth trails profit growth** by a wide margin. - **Goodwill of ₹165,354 million** carries impairment risk if Encora disappoints. ## The case for - **Deal flow**: US$1.04 billion of intake and a US$2.38 billion executable book, up 45% (\[PR\]). - **Margin guidance raised** for this year and a stated target for next (\[PR\]). - **Cash conversion** at 89% of profit (\[FS\]). ## What to watch 1. Organic growth, quarter by quarter, as Encora is absorbed. 2. Debt reduction and interest cost. 3. What the US Form F-1 registration turns into. ## Sources - **\[PR\]** [Coforge, Q2 FY27 press release](https://nsearchives.nseindia.com/corporate/COFORGE%5F23102026163959%5F3PressReleaseF.pdf) (NSE) - **\[FS\]** [Coforge, Q2 FY27 fact sheet and presentation](https://nsearchives.nseindia.com/corporate/COFORGE%5F23102026162532%5F2FactSheetWebPresentationF.pdf) (NSE) - **\[BM\]** [Coforge, board meeting outcome](https://nsearchives.nseindia.com/corporate/COFORGE%5F23102026161820%5FBMOutcome23102026F.pdf) (NSE) - **\[MS\]** [Moat & Margin, Moat Screener](https://www.moatmarginresearch.com/moat-screener/) and [How MoatSCORE works](https://www.moatmarginresearch.com/moatscore/) --- > Educational research, not investment advice. Every figure above is drawn from Coforge's own filings, read from the primary documents on 24 October 2026; derived figures are our arithmetic, labelled as such. MoatSCORE read live from the Moat Screener on 24 October 2026\. No buy/sell recommendations, no price targets, no share prices. Moat & Margin is not a SEBI-registered Research Analyst or Investment Adviser.