Coforge has demonstrated strong operational performance with EBIT margin expanding by 60 basis points to 18.0%, driven by $10 million in cost synergies, improved EBITDA margins, and a 5% increase in revenue from higher-margin business areas. This operational excellence comes alongside the company's transformative $2.35 billion acquisition of US-based AI and digital engineering firm Encora, which is expected to deliver enhanced financial benefits.

Operational Performance Improvements

The company's latest operational metrics showcase significant margin expansion and cost optimization achievements:

Enhanced Financial Performance from Encora Deal

The Encora acquisition continues to demonstrate improved financial benefits with updated projections showing stronger earnings potential and strategic value:

Deal Structure and Strategic Vision

The acquisition will be funded entirely through equity, with Encora shareholders including private equity majors Advent International and Warburg Pincus receiving approximately 20% stake in the expanded company:

CEO Sudhir Singh noted that the company is unlikely to add any new vertical or geography over the next 3-5 years, with management calling this a defining moment in Coforge's journey.

Revenue Growth and Future Outlook

The updated projections show the combined entity targeting 15% revenue growth by FY27, with the transaction expected to close in FY25:

Coforge believes AI will be a positive addition to revenues, with opportunities to sell more technology services expected to offset deflation from AI-driven productivity gains. The deal significantly enhances Coforge's presence in the US West Coast and Midwest regions while strengthening near-shore delivery capabilities through Encora's established operations.

Coforge Limited has issued a clarification statement regarding speculative news reports while also providing corrections to its preferential share allotment disclosure details. The IT services company addressed media speculation and updated shareholding information for strategic investors.

Clarification on Speculative News Reports

Coforge issued an official statement on December 26, 2025, addressing speculative news items that appeared on Moneycontrol. The company clarified that the referenced news was premature and not based on any official information or communication from the company.

The company confirmed that prior to the publication of the news, there was no event or development that obligated disclosure to stock exchanges under Regulation 30 of SEBI Listing Regulations. All relevant disclosures were made following the conclusion of the Board meeting on December 26, 2025.

Disclosure Correction for Preferential Issue

Coforge has issued an important correction to its earlier Board Meeting outcome disclosure regarding the preferential share allotment. The correction specifically addresses Part 4 of Annexure C under the "Preferential Issue of Equity Shares" section, revising post-merger shareholding details for strategic investors.

The company clarified that all other details regarding the preferential allotment remain unchanged, with the correction focusing solely on post-merger shareholding calculations.

Major Preferential Share Allotment

The centerpiece of the postal ballot involves a substantial preferential share issuance worth ₹1,703.26 crores. The company proposes to allot equity shares to two strategic investors through a share swap arrangement.

The issue price has been determined at ₹1,815.91 per equity share, including a premium of ₹1,813.91, based on SEBI ICDR Regulations pricing formula.

Corporate Communication

The clarification statement was signed by Barkha Sharma, Company Secretary & Compliance Officer, and submitted to both BSE Limited and National Stock Exchange of India Limited. The company emphasized its commitment to transparent communication and regulatory compliance.