Shares of Coforge surged 6.64% to Rs 1,630.20 in Tuesday’s trading session after the IT services firm reported a strong Q1FY27 performance. Net profit jumped 63% YoY, while revenue grew 49%, reflecting strong business momentum and improved operational efficiency. However, profit declined 15% sequentially compared with the previous quarter due to quarterly fluctuations.Coforge reported revenue from operations of Rs 5,527.7 crore for the quarter ended June 2026, registering a growth of 24% quarter-on-quarter (QoQ) and 49% YoY. The company had reported revenue of Rs 4,450.4 crore in March 2026 and Rs 3,704.4 crore in June 2025. The strong revenue performance was supported by healthy demand across geographies, new deal wins, and continued momentum in AI-led engineering, cloud, and data services.The company posted a consolidated net profit of Rs 518.6 crore in Q1FY27, down 15% from Rs 612.3 crore in the March 2026 quarter. On a yearly basis, however, profit increased significantly by 63% compared with Rs 317.4 crore reported in the same quarter last year. Profitability improvement was reflected in strong margin expansion during the quarter.Coforge reported EBITDA of Rs 1,123.3 crore ($120.3 million), marking a 74% YoY growth in rupee terms and a 55% increase in dollar terms.EBITDA margin expanded to 20.3%, improving by 285 basis points compared with the year-ago period.EBIT stood at Rs 882.2 crore ($94.5 million), rising 101% YoY in rupee terms and 80% in dollar terms. EBIT margin improved to 16%, expanding by 414 basis points YoY.Record order book strengthens growth outlookThe company reported a strong order intake of $691 million in total contract value (TCV) during the quarter.Coforge’s executable order book for the next 12 months stood at $2.23 billion, increasing 27% QoQ and 44% YoY, providing strong revenue visibility for the coming quarters.During the quarter, the company secured four large deals across North America, Europe, and Latin America, further strengthening its global growth pipeline.AI-Led Services Drive GrowthCoforge highlighted that 86% of its revenues are now generated from AI-led engineering, data, and cloud services. The company said AI adoption across client delivery and internal operations has contributed significantly to margin expansion and business growth.Commenting on the performance, Sudhir Singh, Chief Executive Officer and Executive Director of Coforge Ltd, said: “Q1 performance reflects the strength of our differentiated capabilities and execution intensity. With a next twelve-month signed order book of $2.23 billion, a strong large deal pipeline, and 86% of revenues coming from AI-led engineering, data, and cloud services, we are positioned to remain among the industry growth leaders.”He added that the operational integration of Encora has been completed and that strong demand, record visibility, and expanding AI-led opportunities are expected to make FY27 a strong year for the company.Dividend AnnouncementThe company’s Board has recommended an interim dividend of Rs 4 per share. The record date for determining eligible shareholders for the dividend payout has been fixed as August 3, 2026.Stock Performance and Technical OutlookCoforge shares have gained around 27% in the last three months. The company currently commands a market capitalization of approximately Rs 67,660 crore.The stock’s 52-week high stands at Rs 1,989.70.From a technical perspective, the stock’s 14-day Relative Strength Index (RSI) stands at 57.3. An RSI below 30 generally indicates oversold conditions, while a reading above 70 suggests overbought levels. The stock is currently trading with bullish moving average indicators, suggesting positive momentum.With strong order visibility, expanding margins, AI-driven growth opportunities, and improving operational efficiency, Coforge remains positioned as one of the key players benefiting from the ongoing digital transformation and enterprise AI adoption cycle.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)