Birlasoft (BSOFT) Q1 26/27 earnings summary

Executive summary

• Revenue grew 7.4% year-over-year and 2.3% quarter-over-quarter to ₹13,794 million, driven by BFSI and Life Sciences & Services, despite macroeconomic challenges.

• EBITDA margin normalized and expanded to 16.1%, with EBITDA at INR 222 crore ($23.4M), up 40.3% year-on-year, reflecting operational efficiency improvements.

• PAT increased 51.3% YoY to ₹1,610 million, with basic EPS at 5.72.

• Deal signings reached $169M TCV, up 20% YoY, including several AI-led engagements.

• Cash and cash equivalents rose 9% QoQ and 26% YoY to ₹28,786 million, supported by improved collections and DSO reduction to 55 days.

Financial highlights

• Q1 consolidated revenue at $145.2 million; rupee revenue at INR 1,379.4 crore (₹13,794 million).

• EBITDA at $23.4M, margin at 16.1%; EBIT at $21.4M, margin at 14.7%.

• PAT at $16.9M, margin at 11.7%.

• Basic non-annualized EPS at INR 5.72 per share.

• DSO improved to 55 days; OCF to EBITDA at 108%.

Outlook and guidance

• Management expects to sustain growth momentum, especially in Financial Services and Life Sciences, while Manufacturing and E&U are expected to recover in a few quarters.

• EBITDA margin expected to remain at or above 15%, with short-term dilution from wage hikes offset by productivity gains.

• Continued investment in technology, AI capabilities, and sales expansion to strengthen the deals pipeline.

• No specific revenue or deal signing guidance, but H1 deal signings expected to surpass last year's H1.

• Management expects stable performance despite ongoing macroeconomic headwinds.