Coforge reports 49% revenue jump as AI‑led services boost margins

Coforge Ltd posted a 49% year‑on‑year revenue increase to $592.2 million in Q1 2026, with profit after tax rising 110% to $55.6 million. The company attributed the surge to AI‑driven engineering, data and cloud services, noting that 86% of its revenue now comes from AI‑led offerings.

Operating margins improved sharply, with EBIT margin reaching 16.0% (up 414 basis points) and EBITDA margin 20.3% (up 285 basis points). Coforge’s chief executive Sudhir Singh highlighted a $2.23 billion signed order book and a strong pipeline that supports its third consecutive year as an industry growth leader.

The results contrast with rivals’ warnings of “AI deflation”; HCL Technologies expects revenue declines of 3‑5% next year. Coforge also completed its acquisition of US‑based services firm Encora for $2.35 billion in share swaps, integrating the business into its AI‑first model. Market surveys show over 84% of channel partners anticipate AI software driving growth through 2026, underscoring the structural demand behind Coforge’s performance.