Birlasoft (BSOFT) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 revenue was $150.7 million (₹12,848.98 million), down 1% QoQ and 5.3% YoY, mainly due to a decline in the Manufacturing vertical, while other verticals grew sequentially.

• EBITDA margin declined to 12.4% from 13.2% in the previous quarter.

• Cash and cash equivalents rose 16% YoY and 3% QoQ to $266.6 million, reflecting strong cash generation.

• Leadership transition: Kamini Shah steps down as CFO, succeeded by Chandrasekar Thyagarajan, effective August 8.

• Focus remains on operational efficiency, cashflow generation, and prudent capital allocation to position for future demand recovery.

Financial highlights

• Q1 revenue: $150.7 million (₹12,848.98 million), down 1% QoQ and 5.3% YoY.

• EBITDA: $18.6 million, margin 12.4%; EBIT: $16.2 million, margin 10.7%.

• PAT: $12.5 million, margin 8.3%; Adjusted PAT: $14.4 million, margin 9.5%.

• Basic EPS: ₹3.81 (consolidated); Adjusted EPS: ₹4.39.

• DSO at 58 days, temporarily elevated due to delayed collections.

Outlook and guidance

• Management targets sequential revenue growth in Q2, but full-year growth remains uncertain due to macro headwinds and a lower starting base.

• Demand environment remains challenging, but an uptick in deal wins is expected as customer decision-making improves.

• Margins expected to remain in the 12.4%-13% range for FY2026.

• Focus is on quarterly execution and order book expansion rather than annual guidance.

• Continued investment in AI-powered capabilities and digital transformation initiatives.