Coforge Chief Financial Officer Saurabh Goel said the company expects free cash flow conversion to exceed its 100% fiscal 2027 target, after the integration of Encora delayed some billing and collections.
Coforge’s investor presentation showed free cash flow of $53.8 million for the quarter ended Sept. 30, 2026. That equaled 89% of profit after tax. The rate was 92% for the first half of FY27.
On Friday, Oct. 23, Goel told an earnings call that shifting Encora customer agreements from U.S. subsidiaries to Coforge’s parent in India disrupted the timing of invoices and customer payments. He linked the transition to an increase in unbilled revenue.
Goel also cited legal-entity rationalization and tax structuring. Management expects billing and collections to catch up as more contracts move under the parent, but did not give a timetable. Coforge did not quantify the increase in unbilled revenue or the cash delayed.
The company’s FY27 conversion goal is 100% of profit after tax. Goel said Coforge expects to finish above that level. The fiscal year ends March 31, 2027.
Coforge announced that it completed its Encora acquisition on April 23, 2026, and began consolidating Encora’s financials on May 1. Based on those dates, July through September was the first full quarter with Encora included in Coforge’s results.
Coforge reported Q2 revenue of $652.2 million, up 10.1% sequentially in U.S. dollars. Its results release also raised FY27 consolidated EBIT margin guidance to 16% from 15.5%. The company’s cash-conversion result at fiscal year-end will show whether it meets or exceeds its target.
