Coforge Releases EPS Analysis for $2.35Bn Encora Acquisition with Financial Projections

Coforge Limited has released a comprehensive investor presentation analyzing the earnings per share (EPS) impact and financial projections for its $2.35 billion acquisition of Encora. The presentation, submitted under Regulation 30 on December 28, 2025, demonstrates that the transaction will be EPS accretive and provides detailed pro forma financials for the combined entity.

EPS Accretive Transaction Analysis

The investor presentation reveals that the Encora acquisition will enhance Coforge's earnings per share, with the combined entity expected to generate stronger financial performance. The transaction is projected to close around Q1 FY27, with the presented financials being pro forma in nature.

Financial Metric	Coforge Standalone	Encora	Combined Entity
Revenue (US$ Mn)	2,136	690	2,826
EBITDA (US$ Mn)	384	148	533
EBITDA Margin	18.00%	21.50%	18.90%
EBIT (US$ Mn)	298	100	399
EBIT Margin	14.00%	14.50%	14.10%
PAT (US$ Mn)	203	79	283
PAT Margin	9.50%	11.50%	10.00%
EPS (US$)	52.10	-	53.70

Updated Shareholding Structure and Share Capital

The presentation provides detailed calculations for the post-closing share capital structure, including the impact of potential QIP funding for retiring Encora's term loan. The preferential issuance price to Encora sellers is set at ₹1,815.91 per share, representing an 8.50% premium to the closing price of ₹1,674 as of the signing date.

Share Capital Component	Number of Shares (Mn)
Current Coforge Outstanding Shares	335.00
Shares for Cigniti Merger	12.70
Shares to Encora Sellers	93.80
Potential QIP Shares	27.20
Total Post-Closing Shares	468.70

Encora's Financial Profile and Strategic Value

Encora brings significant strategic value with its AI-native capabilities and strong financial metrics. The company operates with a unique distributed delivery model, maintaining approximately 9,100 global workforce across 20 countries with 33 innovation labs.

Encora Key Metrics	Details
FY26E Revenue	US$600.00 million
FY26E EBITDA Margin	19.00%
Revenue per FTE	US$74,000
FCF to PAT Conversion	~90.00%
Global Workforce	~9,100 employees
Large Client Accounts (>US$10Mn)	11 accounts
Geographic Distribution	49% India, 33% LATAM

AI-Led Engineering Capabilities and Market Position

The acquisition positions the combined entity as a US$2.50 billion technology services powerhouse with enhanced AI capabilities. Encora's AIVA platform and AI-first approach complement Coforge's existing capabilities, creating 45 client relationships above US$10 million in size.

Combined Entity Highlights	Details
Total Client Relationships (>US$10Mn)	45 accounts
Encora Top 10 Client Tenure	10+ years average
AI Platform	AIVA - Agentic AI Platform
Service Verticals	Hi-Tech, Healthcare, BFSI
Innovation Labs	33 global locations

The comprehensive investor presentation underscores the strategic rationale behind the Encora acquisition, demonstrating clear EPS accretion and enhanced capabilities in AI-led digital engineering. With detailed financial projections and shareholding structures now disclosed, the transaction represents a transformative step for Coforge in establishing scaled AI-native engineering capabilities in the competitive technology services market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.71%	-9.33%	-10.57%	-11.37%	-11.87%	+210.92%

Coforge is in advanced negotiations to acquire Encora, a prominent digital engineering and modernization services firm, in a transaction now valued at $2 billion according to sources. The deal represents a significant increase from earlier reports that pegged the valuation at over $1 billion, highlighting the strategic importance of this potential acquisition.

Updated Deal Parameters

The acquisition discussions have progressed with a substantially higher valuation for Encora, which is currently owned by private equity firm Advent International. The target company provides clients with tailored innovation software through services across AI, data and cloud technologies.

Parameter:	Details
Target Company:	Encora
Updated Valuation:	$2 billion
Current Owner:	Advent International
Services Focus:	AI, data and cloud

Board Meeting and Fund Raising Plans

Coforge's board is scheduled to meet today to consider a fund raising proposal, followed by an analyst call this evening. This timing suggests the company is preparing to secure the necessary capital for the potential acquisition.

Financial Position:	Amount
Cash and Cash Reserves:	₹6,000.00 crore
Net Cash Flow:	₹474.00 crore

Previous Acquisition Experience

Coforge has demonstrated its acquisition capabilities through its recent purchase of Cigniti Technologies in 2024, valued at over ₹2,000.00 crore. The company successfully raised funds through a Qualified Institutional Placement (QIP) process to complete that transaction, issuing shares at ₹4,600.00 per share, which adjusts to ₹920.00 per share after the 1:5 stock split.

Market Response

Shares of Coforge have declined 7% over the last two trading sessions since the board meeting announcement, reflecting market uncertainty around the potential large-scale acquisition and associated fund raising requirements. The stock currently trades significantly higher than the previous QIP issue price levels.

This potential acquisition would represent one of the larger deals in the Indian IT services sector, positioning Coforge to significantly enhance its digital transformation and engineering capabilities in high-demand areas such as artificial intelligence, data analytics, and cloud services.