Birlasoft Ltd. share price target

Birlasoft reported stable Q2FY26 performance amidst a challenging macro environment, with dollar revenue marginally up 0.1% QoQ to USD 150.7mn and rupee revenue rising 3.4% QoQ. Manufacturing softness was partially offset by sequential growth in BFSI and Lifesciences. EBITDA margin expanded sharply to 16% from 12.4% in Q1, aided by operational efficiencies and one-offs, but the underlying margin excluding these benefits would be around 13.5%. Q2 deal wins totaled USD 107mn, with some committed deals spilling into Q3, which is expected to deliver growth in the seasonally weak quarter. The company...

Strengthening AI capabilities to spur future growth: Birlasoft continues to invest in AI, automation and data engineering capabilities, positioning itself to capture the next wave of enterprise digital transformation. Its expanding portfolio of agentic AI solutions and domain-specific digital offerings enhances differentiation against peers. As discretionary tech budgets return, these capabilities, backed by an improving deal pipeline & execution strength, should...

Birlasoft reported a 1% QoQ revenue decline in Q1 to USD 150.7mn, driven by macroeconomic headwinds, client insourcing, and ramp-downs in manufacturing, while BFSI, Life Sciences & Services, and Energy & Utilities saw growth. EBITDA margin stood at 12.4%, impacted by the absence of Q4 one-offs. TCV wins reached USD 141mn, slightly lower due to seasonality and a deal shifting to Q2. Manufacturing and ERP remain under pressure amid tariff uncertainties, though medical devices show positive traction. ERP, despite challenges, remains a USD 200mn business. The company is focusing on mining its top 40 accounts,...

Reported revenue stood at $150.7 million down 1.8% q-o-q/6% y-o-y in constant currency (CC), in-line with our estimates due to macroeconomic headwinds, project completions, and some insourcing by clients.

Revenue down 5.3% QoQ CC, lower than our estimate on furloughs, project ramp downs, insourcing, etc. Had 3 QoQ drops in FY25

Birlasoft reported revenue at $152.2 million down 5.3% q-o-q/6.9% y-o-y in constant currency (CC) terms, missing our estimates of $160.1 million.

Amid a challenging macroeconomic environment and sustained pressure on discretionary spending, BSOFT reported muted performance; however, an encouraging uptick in deal TCV to USD 236mn (+4% QoQ) from Q3FY25, coupled with management guidance indicating sustained momentum, is expected to deliver growth from Q2FY26. Despite management's optimistic outlook of FY26 surpassing FY25, near-term headwinds lead to softness from furloughs and project ramp-downs in Q1, along with typical seasonality in H2 which are likely to temper the overall performance. While the company remains committed to...

3QFY25 performance impacted by higher-than-expected furloughs and decline in ERP Biz. Revenue declined by 1.1% QoQ in CC terms

Birlasoft reported revenue of $160.8 million, down 1.1% q-o-q/0.1% y-o-y, in constant currency (CC) terms, missing our estimate of $164.3 million. Revenue in rupee terms stood at Rs. 1362.7 crore, down 0.4% q-o-q/up 1.5% y-o-y.

Birlasoft is trying to pivot to address both annuity and transformation deals to remain on the growth path with decent margins

Big miss on revenue and margins. Significant shifts in cost items on a QoQ basis help prevent collapse in margins

TCV in Q4 (down 16% y/y) and H2 (down 11% y/y) was soft. In FY24, it was flattish (up 1%). However, the book:bill was 1.5x (LTM 1.4x),hence, the slow FY24 TCVgrowth may not impact revenue growth in FY25

? Reported revenue stood at $163.9 million, up 1.6% q-o-q/9.6% y-o-y in constant currency (cc) terms, slightly missing our estimates of $164.2 million driven by BFSI, E&U and manufacturing verticals.