Encora acquisition to boost Coforge revenue to $2.5billion

BENGALURU: IT services firm Coforge said its acquisition of US-based Encora will be a defining step in building a scaled, AIled engineering, and cloud services business. Once the transaction closes, the combined entity is expected to have a pro forma revenue base of about $2.5 billion.

Speaking at the company’s post-earnings media call, chief executive officer Sudhir Singh said the deal positions Coforge to benefit from a structural shift in global technology services demand, as enterprises move beyond AI pilots to seeking measurable business outcomes at scale. “The age of AI experimentation is over. Customers are demanding proof of business impact, measurable KPI improvements and clear paths to operational transformation,” Singh said.


Encora, which is approaching $600 million in annualised revenue, will be run on a growth trajectory at least in line with Coforge’s, Singh said. On a pro forma basis, nearly $2 billion of the combined company’s revenue will come from AI-led engineering, data and cloud services, making these areas central to its strategy.

Coforge clarified that it will not raise equity to refinance Encora’s $500 million debt. Instead, it has secured debt funding from a consortium of five banks at a mid-single-digit interest rate. “There will be no EPS dilution,” Singh said.

Integration-related costs, including financing, legal and advisory expenses, are estimated at $10–15 million and will be booked across the first two quarters of FY27. Coforge reported revenue of $478 million in the December quarter, up 4.4% sequentially and 21.5% year-on-year in constant currency terms.