Birlasoft (BSOFT) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue was ₹14,162.00m, up 6.6% YoY and 2.7% QoQ; PAT rose 37.5% YoY to ₹1,596.46m.

• EBITDA margin was 15.2%; manufacturing, BFSI and Life Sciences & Services led sequential growth, while E&U declined.

• H1 deal-win TCV rose 15% YoY to $285m; management expects H2 performance to exceed H1, subject to converting pipeline into wins.

Financial highlights

• Q2 revenue was ₹14,162.00m versus ₹13,289.03m YoY; USD revenue was $148.3m, up 2.1% QoQ and down 1.6% YoY.

• EBITDA was ₹2,153m, down 3.3% QoQ and up 1.0% YoY; EBITDA margin was 15.2%, down 95 bps QoQ and 84 bps YoY.

• PAT was ₹1,596.46m versus ₹1,161.02m YoY; basic EPS was ₹5.67 versus ₹4.16.

• Q2 deal signings totaled $116.1m TCV, up 9% YoY; H1 signings were $285m, up 15% YoY.

Outlook and guidance

• Management expects H2 FY27 financial performance to exceed H1; no quarterly growth guidance was given, and Q3 seasonality may weigh on results.

• Steady-state EBITDA margin objective is 15% or above, with seasonal fluctuation possible and continued sales and capability investment.

• Pipeline was steady and slightly higher; stronger H2 signings are needed to support future growth, including FY28 and beyond.

• Furloughs are expected in the prior fiscal year's range; current client discussions indicate no sharp Q4 dip, subject to execution and client developments.