BIRLASOFT LIMITED Earnings Summary — Q4 FY2026
Birlasoft Reports Robust Margin Expansion and 47% Sequential Profit Surge in Q4
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹1,379 Cr is 7.4% higher year-on-year.
- Revenue has compounded at 0.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹161 Cr is 51.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -4.9% annualised across the period.
- Operating margin stands at 16.1% in Q1 FY2027.
- Operating margin expanded by 379 bps year-on-year.
- Over the last two years operating margin has expanded by 145 bps.
- PBT margin is 16.5%.
- Expense growth of 2.7% remained below revenue growth of 7.4%.
- Operating profit of ₹223 Cr is 40.3% higher year-on-year.
- Operating leverage continues to improve.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 66/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,379 | 1,349 | 1,348 | 1,329 | 1,285 | 1,317 | 1,363 | 1,368 | 1,327 | 1,363 |
| Expenses | Stable | 1,157 | 1,099 | 1,103 | 1,116 | 1,126 | 1,143 | 1,199 | 1,203 | 1,132 | 1,141 |
| Operating Profit | Stable | 223 | 249 | 245 | 213 | 159 | 174 | 163 | 165 | 195 | 222 |
| Operating Margin | Stable | 16.1% | 18.5% | 18.2% | 16.1% | 12.4% | 13.2% | 12.0% | 12.1% | 14.7% | 16.3% |
| Other Income | Volatile | 29 | -4 | -27 | 22 | 33 | 20 | 21 | 33 | 35 | 46 |
| Interest | Improving | 4 | 4 | 6 | 5 | 5 | 6 | 7 | 7 | 4 | 4 |
| Depreciation | Stable | 19 | 19 | 20 | 20 | 21 | 22 | 21 | 22 | 21 | 21 |
| Profit Before Tax | Stable | 228 | 222 | 192 | 210 | 166 | 166 | 156 | 170 | 205 | 242 |
| Tax | Improving | 67 | 46 | 72 | 94 | 60 | 44 | 39 | 42 | 55 | 62 |
| Net Profit | Accelerating | 161 | 176 | 120 | 116 | 106 | 122 | 117 | 128 | 150 | 180 |
| Net Margin | Accelerating | 11.7% | 13.1% | 8.9% | 8.7% | 8.3% | 9.3% | 8.6% | 9.3% | 11.3% | 13.2% |
Key Takeaways
- Delivered a sharp recovery in Net Profit, rising to ₹176 Cr from ₹120 Cr in the previous quarter.
- Operating margins have stabilized at a multi-quarter high of 18%, significantly up from 13% in the same quarter last year.
- Revenue growth remained largely flat sequentially (+0.07%) and grew modestly at 2.4% YoY, reflecting broader macro challenges.
- Birlasoft maintains a robust liquidity position with cash and investments exceeding ₹2,000 Cr as of March 2026.
- Tax expense normalized to 21% in Q4 compared to the elevated 37% seen in Q3, aiding the bottom-line performance.
- Operating profit reached ₹249 Cr, the highest in the recorded quarterly period, driven by efficient cost management despite stagnant sales.
Management Guidance
The company continues to focus on digital transformation and ERP modernization as primary growth levers. While revenue growth has been 'lumpy' and impacted by US/Europe macro headwinds, the strategic pivot toward Cloud and AI-driven services remains the long-term objective.
Sentiment Shift
Improving
A significant recovery in net margins and the maintenance of 18% operating margins offset the impact of stagnant top-line growth.
Outlook
The company is positioned as an emerging compounder with high transparency. Outlook is cautious on volume growth due to macro factors but optimistic on margin preservation through high-value service delivery.
From the Annual Report (Key Quotes)
“Benefiting from strong parentage, the company maintains a debt-free balance sheet with superior liquidity.”
“Management has shown agility in pivoting toward Cloud and AI-driven services.”
“Revenue has scaled... though growth has historically been lumpy.”
Official Quarterly Documents
This summary is AI-generated from BIRLASOFT LIMITED's latest quarterly filing and earnings call. For informational purposes only — not investment advice.