New Delhi: Coforge Ltd has reported a stellar Q3, with net profit up 71.2% to ₹364 crores on a year on year(YoY) basis, while consolidated revenues rose 28.5% YoY to ₹4,188 crores. This development comes after the company went ahead with its $2.35 billion Encora acquisition, making it a share swap deal to address concerns about its low cash reserves and financial health.
The acquisition is expected to help Coforge become India’s seventh largest IT firm, leapfrogging Persistent, Hexaware Technologies and Mphasis after the deal closes in about six months. Encora’s shareholders, including Warburg Pincus and Advent International, will get about 20% of the combined entity’s stock, which is expected to boost its in-house AI capabilities and expand its presence in Latin America and the US.
Coforge’s total debt stands at ₹2,925 crores as on December 31, 2025, and is expected to rise further as the company aims to raise up to Rs.5,000 crore through a bridge loan or QIP to retire Encora’s liabilities.
Besides this, Coforge has won orders worth $593 million in Q3 FY26, with 6 large deals signed across North America, Europe and the APAC region. Its executable order book stands at $1.72 billion, a 30.4% YoY increase.
“A 5.1% sequential growth in Q3 during a seasonally weak quarter, 28.5% YoY growth, six large deals signed in this quarter, a 30% YoY increase in the next twelve-month executable order book, and a robust large deals pipeline gives us the confidence of maintaining our strong and sustained growth through both FY26 and FY27. Furthermore, the $ 2 Billion core of Data, Cloud and AI-led engineering that will be created after Coforge and Encora come together, sets us up for sustained outperformance in the years to come,” Sudhir Singh, Chief Executive Officer and Executive Director, Coforge, said in a press release to the bourses.
Along with the announcement, the company has announced a ₹4 interim dividend per share, adding to the ₹27 dividends announced earlier in the financial year.
Coforge’s shares were trading at ₹1,641.60 per share, declining 2.73% in early morning trades on January 23, following the announcement.
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