Birlasoft Ltd. share price target

Q 1F Y2 7 performance : Revenue stood at US$145.2 mn (1,379.4 crore), up 0.3% QoQ/down 3% YoY in CC terms. Reported EBITDA margin came at 16.1%, down ~233 bps QoQ/up ~379 bps YoY. Reported PAT stood at 161 crore, down 8.5%...

Birlasoft's Q1 FY27 reflects a company that is still finding its footing. Revenue grew a modest 0.3% CC QoQ, with dollar revenue flattish at USD 145.2mn, a marked contrast to peers like Coforge which posted double-digit growth. EBITDA margin normalized to 16.1% post oneoffs, but management flagged 170-200bps dilution from wage hikes effective July, with only partial recovery expected through productivity gains. TCV signings of USD 168.7mn (+20% YoY) and a widening AI-led deal pipeline offer some encouragement, yet management didn't provide any clear revenue guidance, citing market...

Q4FY26 & FY26 Performance: Revenue stood at US$ 145.3 mn (1,348.6 crore), down 3.7% QoQ/ 5.1% YoY in CC terms. Reported EBITDA margin came at 18.5%, up ~30 bps QoQ. Reported PAT stood at 176 crore, up 46.7% QoQ. For FY26, revenue stood at US$ 597.5 mn, down 6% YoY (-6.5% YoY CC). Reported EBITDA...

4Q revenue was weaker than estimate though margins were better. FY26 revenue declined 6.5% in CC, the weakest in our coverage

Birlasoft delivered a mixed FY26, with full-year revenues declining 6% in dollar terms to ~USD 598mn, weighed down by a soft demand environment, clientspecific headwinds in the life sciences/med-tech vertical, deliberate exits from low-margin contracts (~200bps revenue impact), and upfront productivity pass through on AI deals. Margin recovery was remarkable and EBITDA expanded 333bps YoY to 16.3% in FY26, reaching 18.5% in Q4, aided by cost rationalization, forex tailwinds (~170bps), and one-time provision reversals (~170bps). PAT for Q4 surged 47% QoQ to ~INR 1.76bn. Deal wins stayed above USD 200mn TCV for the second consecutive quarter. Management is doubling...

Birlasoft delivered a steady Q3 performance despite a seasonally weak quarter, with flat revenue growth in dollar term but a strong improvement in margins driven by cost control, higher offshore mix, and better-quality deals. EBITDA margin expanded sharply to 18.2% backed by one-offs, forex benefits, rise in fixed-price business & offshore works, though management clarified that the sustainable margin is closer to 15%. Deal wins improved meaningfully, with total contract value rising sharply and a healthy share of net-new, AI-led engagements, showing progress in moving towards outcome-based and fixedprice work. However, revenue growth remains the key concern. Demand...

Growth visibility still limited: Q3 performance indicates stabilization rather than a broad-based recovery. Revenue remained largely flat QoQ and declined YoY, with growth concentrated in manufacturing (+3.1% QoQ) due to rampup of previously paused deals, which management indicated is largely onetime. Growth drivers appear narrow as key verticals such as BFSI, ER&U and Lifesciences remain soft, and Americas weakness persists. Headwinds in manufacturing and life sciences which are expected to continue into Q4 & recovery is expected only from Q1/Q2 FY27, leading to a back-ended growth...

The weakest order inflow in 12 quarters hints at growth problems even in FY27 after two successive years of negative growth

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...

Weak 1Q QoQ CC revenue growth. EBIT margin contracted 80 bps QoQ. We estimate 5.6% FY26 USD revenue decline vs flat numbers earlier

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