BIRLASOFT LIMITED (BSOFT)
₹318.20 +2.81% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, BIRLASOFT's revenue was ₹1,379 Cr (+7.4% year on year, +2.3% on the previous quarter), and net profit ₹161 Cr (+51.9% year on year); the operating margin was 16.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,379 | +7.4% | +2.3% |
| Operating profit | ₹223 | +40.1% | -10.5% |
| Net profit | ₹161 | +51.9% | -8.5% |
| EPS (₹) | 5.72 | +49.3% | -9.1% |
| Operating margin | 16.1% | — | — |
BSOFT delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 32.88% of the BSOFT shares traded on NSE were taken to delivery, against the stock's own 20-session average of 40.94%. That is close to its usual level.
Delivery in the last 5 sessions: 59.3% · 11.1% · 31.9% · 21.1% · 32.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Birlasoft Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended September 30, 2026. The certificate received from registrar MUFG Intime India Private Limited confirms that security certificates received for dematerialisation during the quarter were processed, mutilated, and cancelled within the prescribed timelines. The depositories have been entered into the register of members accordingly. This filing is a routine procedural disclosure with no impact on earnings or operations.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended September 30, 2026
- Issued by Registrar and Transfer Agent MUFG Intime India Private Limited (SEBI Reg No: INR000004058)
- Filing executed and signed on October 12, 2026
Birlasoft has announced that it has joined the OpenAI Partner Network as an OpenAI Select Partner. Under the partnership, Birlasoft will work with OpenAI to build, deploy, and scale enterprise AI solutions, leveraging OpenAI frontier models including GPT-6 Astra. The release outlines existing operational impacts across verticals, including an 85% query response time reduction in Life Sciences and a 30-40% manual effort reduction across 6+ workflows in MedTech. No commercial terms or direct revenue figures tied to the partnership status were disclosed.
- Named an OpenAI Select Partner within the OpenAI Partner Network to scale enterprise AI solutions.
- Energy vertical workflows achieved 20–30% faster asset health acknowledgement.
- Life Sciences regulatory workflows delivered query response time reductions of up to 85%.
- MedTech solutions reduced manual effort by 30–40% across 6+ workflows, while Insurance saw 10–20% faster underwriting cycles.
CARE Ratings Limited has reaffirmed its credit ratings for Birlasoft Limited's bank facilities totaling ₹352 crore, retaining 'CARE AA+; Stable' for long-term and 'CARE A1+' for short-term facilities. The agency noted Birlasoft's strong financial risk profile backed by ₹2,878.6 crore in available free liquidity as of June 30, 2026, and negligible debt. Despite FY26 revenue de-growing 1.2% in INR terms (6.5% in USD terms to $597.5 million), profitability improved with PBILDT margins reaching 16.15% in Q1FY27 through exiting low-margin accounts. Birlasoft's total contract value (TCV) stood at $658 million for FY26 and $169 million for Q1FY27.
- Reaffirmed ratings on ₹307 crore long-term facilities at 'CARE AA+; Stable' and ₹25 crore short-term facilities at 'CARE A1+'
- Strong balance sheet liquidity marked by ₹2,878.6 crore free liquidity as of June 30, 2026
- FY26 PBILDT margins improved to 15.09% (up from 12.76% in FY25) and reached 16.15% in Q1FY27
- Deal wins provided revenue visibility with FY26 TCV at $658 million and Q1FY27 TCV at $169 million
- Active client count rationalized down to 213 in Q1FY27 from 259 in FY24 to eliminate low-margin business
Birlasoft Limited has submitted its Sustainability Report for FY 2025-26, prepared under GRI Standards 2021, SASB, and IFRS S1/S2 frameworks. During the year, the reporting boundary was expanded from standalone to a consolidated basis across the holding company and 13 subsidiaries. The report discloses operational safety metrics, including an absentee rate of 0.03% versus a target of 0.04%, with zero work-related fatalities or injuries over the last three periods. The filing is a statutory non-financial disclosure and carries no direct impact on the company's financial performance or P&L.
- Published FY 2025-26 Sustainability Report expanded to a consolidated basis covering 13 global subsidiaries
- Reported an employee absentee rate of 0.03% against the set target of 0.04% for FY 2025-26
- Reported zero cases of work-related injuries, ill-health, or fatalities over the past three reporting periods
- ISO 45001:2018 certified at Pune and Noida facilities, covering 4,411 employees
Birlasoft Limited announced that Mr. Ankur Vaish, Chief Strategy Officer and Senior Management Personnel (SMP), has tendered his resignation to pursue other opportunities. His cessation is effective as of the close of business hours on September 19, 2026. The departure comes as the company navigates strategic shifts, including GenAI adoption and tail account rationalization, across its ₹5,405 Cr TTM revenue base.
- Resignation tendered on September 11, 2026
- Cessation effective close of business hours on September 19, 2026
- Executive role: Chief Strategy Officer and Senior Management Personnel
- Reason stated: To pursue other opportunities
Birlasoft Limited announced that Mr. Ankur Vaish, Chief Strategy Officer and Senior Management Personnel (SMP), has tendered his resignation to pursue other opportunities. His resignation will take effect at the close of business hours on September 19, 2026. Birlasoft, which generated TTM revenue of ₹5,405 Cr and net profit of ₹573 Cr, is currently executing strategic initiatives around GenAI adoption and account rationalization. The company has not yet named an immediate successor for the Chief Strategy Officer role.
- Chief Strategy Officer and SMP Ankur Vaish tenders resignation
- Cessation date effective close of business hours on September 19, 2026
- Reason cited as pursuing other opportunities
- Company currently operates at a TTM revenue base of ₹5,405 Cr
Birlasoft Limited has approved the allotment of 67,467 equity shares of face value Rs. 2 each to eligible employees following the exercise of stock options under the Birlasoft Share Incentive Plan-2022. Following this allotment, the company's total paid-up share capital increased marginally to Rs. 55,93,34,112 comprising 27,96,67,056 equity shares. The new shares rank pari-passu with existing shares in all respects. The equity dilution from this exercise is negligible at approximately 0.024%.
- Allotment of 67,467 equity shares of face value Rs. 2 each upon ESOP exercise
- Paid-up equity capital expands to Rs. 559,334,112
- Total outstanding equity shares post-allotment stand at 279,667,056
- Allotted shares rank pari-passu with existing equity shares
Birlasoft Limited has received an adjudication order from the Office of the Collector of Stamps imposing a penalty of ₹1,23,14,040 (~₹1.23 crore) jointly on Birlasoft Limited and KPIT Technologies Limited. The penalty stems from a 4-day delay in lodging the November 29, 2018 NCLT Composite Scheme of Arrangement order with the stamp authorities. The order was received on August 26, 2026. The company stated that the penalty will be paid as per process and will have no material operational or financial impact on the business.
- Penalty of ₹1,23,14,040 imposed on Birlasoft Limited and KPIT Technologies Limited
- Violation relates to a 4-day delay in lodging the 2018 NCLT Composite Scheme of Arrangement order
- Adjudication order received from the Collector of Stamps on August 26, 2026
- Penalty represents ~0.21% of TTM PAT (₹573 Cr), presenting no material financial disruption
Birlasoft has been recognized as an 'Enterprise Innovator' in the HFS Horizons report for its legacy application modernization capabilities. The recognition highlights the company's AI-led approach via its Cogito platform, which reportedly delivers 40% faster coding and 35% deployment effort savings. With a track record of 450+ modernizations and an 80% repeat business rate, this validates Birlasoft's strategy to capture the GenAI adoption cycle. While a positive qualitative indicator of technical depth, this is an industry recognition rather than a direct financial contract.
- Birlasoft Cogito platform drives 40% faster coding and up to 35% deployment effort savings.
- Company has delivered 450+ application modernizations and 75+ full-stack programs to date.
- Reported 25-30% productivity improvement through AI and automation across delivery cycles.
- Achieved 18% Total Cost of Ownership (TCO) reduction for a UK-based financial services client.
- Maintains a workforce of 2,000+ certified cloud engineers with an 80% repeat business rate.
Birlasoft Limited has scheduled two physical group meetings with institutional investors in Mumbai. The first meeting is at the Emkay Confluence on August 13, 2026, followed by the Equirus Annual India Conference on August 14, 2026. These are routine investor relations activities where no unpublished price-sensitive information will be shared. The company, with a market cap of Rs 8,979 Cr, continues to engage with the market following its FY26 TTM revenue of Rs 5,310 Cr.
- Scheduled physical group meeting at Emkay Confluence on August 13, 2026, at 2:00 PM.
- Scheduled physical group meeting at Equirus Annual India Conference on August 14, 2026, at 1:00 PM.
- Company maintains a strong liquidity position with Rs 1,916 Cr in cash and investments as per recent context.
- Birlasoft reported a TTM PAT of Rs 518 Cr with an operating profit margin of 19.1%.
Birlasoft reported a steady Q1 FY27 with revenue growing 7.4% YoY to 1,379.4 crore, though growth was flattish in dollar terms at $145.2 million. EBITDA margins normalized to 16.1% after excluding a 170 bps one-off tailwind from the previous quarter. Deal momentum remained strong with TCV signings of $168.7 million, up 20% YoY, driven by AI-led engagements in BFSI and Life Sciences. However, the Manufacturing and Energy & Utilities verticals (together ~50% of revenue) remain soft, requiring a few quarters for recovery.
- $168.7 million in TCV deal signings for Q1, representing a 20% increase year-on-year.
- EBITDA margin settled at 16.1%, down from Q4 FY26 due to the absence of a 170 bps one-off benefit.
- Revenue of 1,379.4 crore reflects a 7.4% YoY growth and 2.3% sequential growth in rupee terms.
- High client concentration noted with 36 accounts contributing 80% of the total business.
- Effective Tax Rate (ETR) normalized to 29.4% for the quarter, expected to stay between 29-30% for FY27.
Birlasoft has made the audio recording of its earnings call held on July 28, 2026, available to the public. This is a standard regulatory procedure following the announcement of quarterly results. Investors can access the recording to hear management's detailed commentary on the company's TTM revenue of ₹5,310 Cr and its strategy regarding GenAI adoption. The company currently maintains a strong liquidity position with ₹1,916 Cr in cash and investments.
- Earnings call conducted on July 28, 2026, following quarterly results.
- Company maintains a TTM revenue of ₹5,310 Cr with an OPM of 19.1%.
- Strong liquidity position reported at ₹1,916 Cr in cash and investments.
- US Manufacturing sector remains a key vertical, contributing 39.7% of total revenue.
Birlasoft delivered a steady Q1 FY27 with revenue of ₹1,379.4 cr, up 2.3% sequentially and 7.4% YoY. Net profit (PAT) surged 51.3% YoY to ₹161 cr, driven by operational efficiencies and an EBITDA margin of 16.1%. A significant highlight is the $169 million TCV in new deal signings, a 20% YoY increase, featuring multiple GenAI-led contracts. The company's balance sheet remains exceptionally strong with cash reserves rising to ₹2,878.6 cr, representing approximately 34% of its current market capitalization.
- Revenue reached ₹13,794 million, growing 7.4% YoY and 2.3% QoQ.
- New deal signings (TCV) rose to $169 million, up 20% from $141 million in the same quarter last year.
- PAT for the quarter stood at ₹1,610 million, a 51.3% increase over Q1 FY26.
- Cash and cash equivalents increased to ₹28,786 million, up 26% YoY.
- Days Sales Outstanding (DSO) improved significantly to 55 days from 62 days in the previous quarter.
Birlasoft reported a steady Q1 FY27 with consolidated revenue reaching ₹1,379.4 cr, a 7.4% increase over the same quarter last year. Net profit saw a significant year-on-year jump of 51.9% to ₹161.0 cr, although it declined 8.5% sequentially from the ₹176.0 cr reported in March 2026. The company maintained a healthy Profit Before Tax (PBT) margin of 16.5%. Employee benefit expenses remain the largest cost component at ₹837.9 cr, representing approximately 60.7% of total revenue.
- Consolidated Revenue from operations stood at ₹13,793.96 million for the quarter ended June 30, 2026.
- Net Profit for the period reached ₹1,609.97 million, up from ₹1,060 million in the year-ago quarter.
- Total expenses for the quarter were managed at ₹11,802.49 million, with employee benefits accounting for ₹8,378.70 million.
- Profit Before Tax (PBT) reached ₹2,281.74 million, reflecting a margin of 16.5% on total income.
- Standalone Basic EPS for the quarter was reported at ₹5.22.
Birlasoft Limited concluded its 35th Annual General Meeting on July 27, 2026, with shareholders approving all four proposed resolutions. Key approvals include the adoption of FY26 financial statements and the declaration of a final dividend. While most resolutions passed with near-unanimous support, the re-appointment of CK Birla as Director saw a 6.75% dissent vote from shareholders, primarily within the institutional and public categories. The company maintained a high promoter voting participation of 100% in favor of all agendas.
- Final dividend declaration approved with 99.99% of the 19.44 crore votes cast in favor.
- Re-appointment of CK Birla as Director passed with 93.25% majority, despite 1.31 crore votes against.
- Total voting participation stood at 69.39% of the 27.96 crore total outstanding shares.
- Record date for shareholder eligibility was July 20, 2026, with 420,152 total shareholders on record.
- Promoter group, holding 11.29 crore shares, voted 100% in favor of all resolutions.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 1.8% YoY to INR 5,375.2 Cr in FY25. By service line, Digital and Data contributed 55.2%, ERP 34.4%, and Infrastructure 10.4%. By industry vertical, Manufacturing (39.7% of revenue) and Life Sciences (20.4%) underperformed due to discretionary spend cuts, while BFSI (23.8%) and Energy & Utilities (16.1%) provided stability.
Geographic Revenue Split
The Americas region is the primary revenue driver contributing 85% of total revenue, followed by Europe at 9.5% and the Rest of the World at 6%. This high concentration in the US market exposes the company to regional macro-economic shifts and tariff uncertainties.
Profitability Margins
Net Profit Margin for FY25 stood at 9.6% (INR 516.8 Cr) compared to 11.8% (INR 623.8 Cr) in FY24. The decline was driven by significant investments in GenAI capabilities, pricing flexibility for consolidation deals, and the ramp-up of lower-margin infrastructure business.
EBITDA Margin
EBITDA margin was 13.0% in FY25 (INR 697.4 Cr), a decline of 280 bps from 15.8% in FY24. However, Q2 FY26 showed a recovery to 16.0% (INR 213.3 Cr) due to improved operational efficiencies and exchange rate tailwinds.
Capital Expenditure
The company maintains a regular annual capital expenditure of INR 50 Cr to INR 55 Cr, primarily for technology upgrades and office infrastructure. No major debt-funded acquisitions were reported, maintaining a lean balance sheet.
Credit Rating & Borrowing
CARE Ratings assigned a 'CARE AA+; Stable' rating. Borrowing costs are minimal as the company is almost debt-free with nil utilization of its INR 352.20 Cr fund-based working capital limits as of July 2025.
Operational Drivers
Raw Materials
As an IT services firm, the primary 'raw material' is human capital. Employee costs are the largest expense, increasing 7.89% in FY24. Sub-contracting costs also represent a significant portion of the service delivery expense.
Import Sources
Not applicable for IT services; however, talent is primarily sourced from India (offshore) and the United States (onsite) to support the 85% revenue contribution from the Americas.
Key Suppliers
Not applicable. The company relies on technology partners like SAP, Oracle, and Microsoft for its ERP and Cloud service lines rather than raw material suppliers.
Capacity Expansion
Capacity is measured by headcount and utilization. The company is currently rationalizing its 'tail accounts' (cleaning up ~100 bps of low-margin business) to release bandwidth for high-growth strategic accounts.
Raw Material Costs
Employee benefit expenses represent the core cost of services. In FY23, these costs spiked by 19% due to industry-wide attrition but have since stabilized. The company uses a 'layered hedging strategy' to manage the cost impact of forex volatility on global payroll.
Manufacturing Efficiency
Not applicable. Efficiency is tracked via 'Utilization Rates' and 'Revenue per Employee'. The company is focused on improving margins by shifting toward higher-value Digital and Data services (55.2% of revenue).
Logistics & Distribution
Not applicable. Services are delivered digitally via cloud infrastructure and onsite client deployments.
Strategic Growth
Expected Growth Rate
12-15%
Growth Strategy
Growth will be driven by the 'GenAI' adoption cycle, vertical realignment to capture specialized domain demand in Manufacturing and Life Sciences, and the 'tail account rationalization' program which aims to improve sustainable margins by 100 bps. The company is also expanding its infrastructure business, which scales into higher margins over time.
Products & Services
IT consultancy, software development, Digital & Cloud transformation, ERP implementation (SAP/Oracle), Data & Analytics, and Managed Infrastructure services.
Brand Portfolio
Birlasoft (a part of the C.K. Birla Group).
New Products/Services
GenAI-integrated solutions and specialized domain-led offerings in BFSI and Life Sciences, which contributed to the 3.4% QoQ revenue growth in Q2 FY26.
Market Expansion
Focus on strengthening market leadership in the Americas (85% of revenue) through the appointment of a new Chief Operating Officer specifically for the Americas region to unlock North and South American opportunities.
Market Share & Ranking
Birlasoft holds a pivotal position within the INR 19,000 Cr+ C.K. Birla Group, ranking as a mid-tier leader in specialized ERP and Digital transformation services.
Strategic Alliances
Strategic partnerships with major platform providers including SAP, Oracle, and Microsoft to deliver ERP and Cloud services.
External Factors
Industry Trends
The IT industry is shifting from traditional ERP to Digital, Cloud, and GenAI. Birlasoft is positioning itself by aligning 55.2% of its revenue to Digital & Data and restructuring operations by industry vertical to achieve cost synergies.
Competitive Landscape
Competes in a highly fragmented market against global IT giants and Indian Tier-1 firms, leading to constant pricing pressure and talent retention challenges.
Competitive Moat
Moat is derived from being part of the diversified C.K. Birla Group and having deep domain expertise in the Manufacturing vertical (40% of revenue). This specialization creates high switching costs for long-term ERP and infrastructure clients.
Macro Economic Sensitivity
Highly sensitive to US GDP growth and interest rate environments; heightened interest rates in the US and Europe have led to 'prolonged decision-making cycles' for Birlasoft's clients.
Consumer Behavior
Clients are shifting from large 'transformational' upfront spends to smaller, modular 'discretionary' spends, requiring Birlasoft to be more flexible in deal structuring.
Geopolitical Risks
Uncertainty related to US tariffs and geopolitical factors led to a cut in discretionary spending by US clients in FY25, impacting the Manufacturing and Life Sciences verticals.
Regulatory & Governance
Industry Regulations
Subject to international data privacy laws (GDPR), US visa policies (H1-B/L1), and labor laws in key operating markets like the US and Europe. Changes in these policies directly affect onsite delivery costs.
Environmental Compliance
The company is moving to cloud-based delivery to reduce its physical hardware footprint and paper waste. It has implemented energy-efficient LED and VRF systems to meet internal ESG targets.
Taxation Policy Impact
Effective tax rate was 25.8% in FY25, with total tax expenses of INR 180.1 Cr on a consolidated PBT of INR 696.8 Cr.
Legal Contingencies
The Board identified a need to strengthen internal financial controls regarding the documentation of 'time-and-material' revenue contracts to ensure accurate revenue recognition. No major pending litigation values were disclosed.
Risk Analysis
Key Uncertainties
The primary uncertainty is the 'softened demand environment' in the US, which could lead to further deferrals of discretionary IT projects, potentially impacting revenue growth by 2-5%.
Geographic Concentration Risk
High risk with 85% of revenue originating from the Americas, making the company vulnerable to US-specific economic downturns or regulatory changes.
Third Party Dependencies
Dependency on third-party software vendors (SAP/Oracle) for its ERP business line (34.4% of revenue) and sub-contractors for specialized onsite project delivery.
Technology Obsolescence Risk
Risk of traditional ERP services becoming obsolete; mitigated by investing in GenAI and Digital/Cloud services which now represent over 55% of revenue.
Credit & Counterparty Risk
Receivables quality is high with a robust track record of collections; cash and equivalents rose 26% YoY to INR 2,343.4 Cr by Q2 FY26, indicating strong liquidity.
