Coforge’s $2.36B Encora deal to accelerate AI push and reshape balance sheet

Late last month Indian information technology company Coforge Ltd.. (NSE: COFORGE) completed the  proposed acquisition of AI software company Encora Digital LLC in a  all-stock deal valued at $2.36 billion. The acquisition is set to boost Coforge’s in-house AI capabilities and expand its presence in the US and Latin America.

Coforge’s revenue grew 36% year-on-year to INR 164 billion ($1.8 billion) in fiscal 2026, ahead of the acquisition. Post-acquisition, Visible Alpha consensus shows combined revenues of INR 244 billion ($2.6 billion) in fiscal 2027, up 49% year-on-year. Beyond the acquisition led step-up change in 2027, revenue growth is expected to normalize with fiscal 2028 revenue growth currently estimated at 14% year-on-year, followed by 13% growth in 2029.

EBITDA is expected to follow a similar trajectory. Haven risen from INR 17.2 billion ($202 million) in fiscal 2025 to INR 30.5 billion ($326 million) in 2026, post-acquisition EBITDA is expected to rise to INR 48.8 billion ($512 million) in 2027.

The balance sheet impact is expected to be significantly more pronounced. Analysts expect total assets to surge from INR 148.8 billion ($1.6) billion in 2026 to INR 403.6 billion ($4.2 billion) in 2027, driven overwhelmingly by a jump in intangible assets from INR 55 billion ($590 million) to over to INR 206 billion ($2.2 billion) in 2027.

Total debt also steps up sharply in fiscal 2027, rising from INR 15 billion ($160 million) in 2026 to INR 40 billion ($416 million) in 2027 and remaining flat thereafter, suggesting a front-loaded financing impact with no additional post-acquisition leverage build.

Overall, consensus points to strong organic acceleration in fiscal 2026 followed by a decisive acquisition-led scale shift in 2027. While EBITDA growth broadly absorbs the enlarged revenue base, the transaction materially reshapes Coforge’s balance sheet toward higher intangible intensity and elevated leverage.

 This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.