IT - Software
Valuation | |
|---|---|
| Market Cap | 11.86 kCr |
| Price/Earnings (Trailing) | 25.59 |
| Price/Sales (Trailing) | 2.21 |
| EV/EBITDA | 13.67 |
| Price/Free Cashflow | 17.78 |
| MarketCap/EBT | 16.15 |
| Enterprise Value | 11.46 kCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | 4.9% |
| Price Change 1M | -1.5% |
| Price Change 6M | 10.2% |
| Price Change 1Y | -20.4% |
| 3Y Cumulative Return | 16.7% |
| 5Y Cumulative Return | 10.3% |
| 7Y Cumulative Return | 20.7% |
| 10Y Cumulative Return | 17.5% |
| Revenue (TTM) |
| 5.37 kCr |
| Rev. Growth (Yr) | -1.6% |
| Earnings (TTM) | 464.53 Cr |
| Earnings Growth (Yr) | 2.5% |
Profitability | |
|---|---|
| Operating Margin | 14% |
| EBT Margin | 14% |
| Return on Equity | 12.55% |
| Return on Assets | 9.78% |
| Free Cashflow Yield | 5.62% |
Cash Flow & Liquidity |
|---|
| Cash Flow from Investing (TTM) | -437.03 Cr |
| Cash Flow from Operations (TTM) | 587.52 Cr |
| Cash Flow from Financing (TTM) | -215.47 Cr |
| Cash & Equivalents | 410.03 Cr |
| Free Cash Flow (TTM) | 538.93 Cr |
| Free Cash Flow/Share (TTM) | 19.39 |
Balance Sheet | |
|---|---|
| Total Assets | 4.75 kCr |
| Total Liabilities | 1.05 kCr |
| Shareholder Equity | 3.7 kCr |
| Current Assets | 3.4 kCr |
| Current Liabilities | 842.31 Cr |
| Net PPE | 218.63 Cr |
| Inventory | 5.02 Cr |
| Goodwill | 534.38 Cr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.00 |
| Debt/Equity | 0.00 |
| Interest Coverage | 33.55 |
| Interest/Cashflow Ops | 25.27 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 6.5 |
| Dividend Yield | 1.53% |
| Shares Dilution (1Y) | 0.80% |
| Shares Dilution (3Y) | 2% |
Profitability: Recent profitability of 9% is a good sign.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Size: Market Cap wise it is among the top 20% companies of india.
Past Returns: In past three years, the stock has provided 16.7% return compared to 12% by NIFTY 50.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Balance Sheet: Strong Balance Sheet.
Growth: Poor revenue growth. Revenue grew at a disappointing -3.4% on a trailing 12-month basis.
Profitability: Recent profitability of 9% is a good sign.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Size: Market Cap wise it is among the top 20% companies of india.
Past Returns: In past three years, the stock has provided 16.7% return compared to 12% by NIFTY 50.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Balance Sheet: Strong Balance Sheet.
Growth: Poor revenue growth. Revenue grew at a disappointing -3.4% on a trailing 12-month basis.
Investor Care | |
|---|---|
| Dividend Yield | 1.53% |
| Dividend/Share (TTM) | 6.5 |
| Shares Dilution (1Y) | 0.80% |
| Earnings/Share (TTM) | 16.63 |
Financial Health | |
|---|---|
| Current Ratio | 4.03 |
| Debt/Equity | 0.00 |
Technical Indicators | |
|---|---|
| RSI (14d) | 55.34 |
| RSI (5d) | 79.09 |
| RSI (21d) | 48.18 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Sell |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal |
Summary of BIRLASOFT's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Management provided an optimistic outlook for the remainder of FY26, forecasting sequential revenue growth in Q3 and Q4. The confidence stems from a better performance anticipated in sectors such as BFSI (Banking, Financial Services, and Insurance), as well as Life Sciences & Services (LSS), despite anticipated challenges in Manufacturing.
Key forward-looking points include:
Expected Revenue Growth: Management projects sequential growth in revenues for Q3 and Q4, bolstered by significant deals transitioning from Q4 of the previous year. The management stated that "the second half of the financial year will be better than the first half."
Total Contract Value (TCV) Aspirations: They aim for TCV to exceed $800 million and aspire to reach $850 million for FY26. While the Q2 TCV signed was $107 million, lower than initially anticipated, the management expects deal signings to improve in Q3 due to two deals that didn't close in Q2 but were committed.
Macroeconomic Environment: Despite a challenging macroeconomic backdrop characterized by trade barriers and protectionism, management is focused on maximizing the deal pipeline with AI-led capabilities at the forefront of their strategy.
Vertical Performance Insights: BFSI is highlighted as a growth leader. The revenue from BFSI might see a temporary dip due to seasonal furloughs, but growth is expected in Q4. Manufacturing, however, is forecasted to remain a drag on overall performance in the near term.
Operational Improvements: The EBITDA margin expanded from 12.4% in Q1 to 16% in Q2, attributed to operational efficiencies and a focus on higher-margin accounts.
Chandru, the CFO, mentioned that future ETR (Effective Tax Rate) would stabilize between 42% and 43% for FY26, while aiming for a more normalized rate of 28% to 30% in FY27.
Overall, management's commentary reflects a cautious yet positive anticipation for improved performance in the latter half of FY26, driven by strategic initiatives and a focus on key sectors.
Understand BIRLASOFT ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| National Engineering Industries Limited | 38.66% |
| Kotak Midcap Fund | 7.22% |
| Hdfc Trustee Company Limited-Hdfc Flexi Cap Fund | 2.47% |
| Axis Mutual Fund Trustee Limited A/C Axis Mutual Fund A/C Axis Small Cap Fund | 2.23% |
| Icici Prudential Technology Fund | 2.11% |
| Tata Digital India Fund | 1.91% |
Detailed comparison of BIRLASOFT against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| TCS | Tata Consultancy Services | 11.47 LCr | 2.65 LCr | -2.50% | -22.90% | 24.03 | 4.32 | - | - |
| INFY | Infosys | 6.61 LCr | 1.78 LCr |
Comprehensive comparison against sector averages
BSOFT metrics compared to IT
| Category | BSOFT | IT |
|---|---|---|
| PE | 25.59 | 25.36 |
| PS | 2.21 | 3.73 |
| Growth | -3.4 % | 6.4 % |
Birlasoft Limited provides software development services in India, the Americas, Europe, the United Kingdom, and internationally. It offers digital transformation services, including data analytics, connected products, intelligent automation, cloud, customer experience, blockchain, and generative AI services; and enterprise technologies and services in the areas of Oracle and JD Edwards, SAP, Infor, Microsoft, PTC, AWS, google cloud, customer relationship management, manufacturing execution systems, product lifecycle management, supply chain management, IT transformation, applications management, testing, and environmental, social and governance. The company also offers solutions, such as intelliBridge, a one-stop-shop platform for channel partners to provide them with all the information on the OEMs/products; intelliOpen, an intelligent system for contactless screening of people, social distancing monitoring, and contact tracing; intelliAsset, a platform for asset visualization, analytics, and actions; TruView CLM, a cloud based contract lifecycle management solution; TruServ FSM, a cloud based touchless automation solution for field services; TruLens, a tool that provides insights into the existing Salesforce implementation; iLink, a solution for the integration of PLM applications and ERP systems; Supplier Risk Radar, an AI-powered preventive risk mitigation solution in the areas of supply chains; Akoya, an engineering analytics solution; and Submission Automation, an insurance broker submission solution. In addition, it offers cloud and infrastructure services, such as one cloud, service integration, anywhere workplace, and cyber security. It serves banking, high tech, manufacturing, insurance, media and entertainment, energy and resources, life sciences and healthcare, and utility industries, as well as capital markets. The company was incorporated in 1990 and is based in Pune, India.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
BSOFT vs IT (2021 - 2026)
Question 1: "Angan, firstly, you are talking about sequential growth in the next couple of quarters. What gives you that confidence, despite the fact that the deal wins this quarter are a bit tad softer?"
Answer: While our deal signings in Q2 appear lower, two significant deals were committed but pushed to Q3 for paperwork completion, not delayed execution. We expect revenues from these deals to begin flowing in soon, boosting our performance in Q3, historically a weaker quarter.
Question 2: "Adjusting for a bit of pass-through revenue, is it fair to assume our core business in this quarter would have grown around 1.3% in constant currency terms?"
Answer: Yes, Sudheer, your assessment is correct. When adjusted for pass-throughs, we estimate our core business experienced a growth around 1.3% in constant currency terms for the quarter.
Question 3: "On the specific question on ETR, what should we be looking at as the ETR for the rest of the year and therefore for the full year FY '26?"
Answer: For FY'26, we anticipate an effective tax rate (ETR) between 42% and 43%. In H2, it could hover around 44% to 45% due to federal tax provisions. For FY'27, we expect the ETR to stabilize at 28% to 30%.
Question 4: "What gives you confidence in pursuing or rejecting certain deals, especially with the weakness in Manufacturing?"
Answer: We're restructuring the Manufacturing vertical and focusing on high-potential accounts. Although it may take a couple of quarters, we believe our efforts will lead to a gradual return to growth in this segment.
Question 5: "Given the increase in T&M work, how do you see this impacting our future growth?"
Answer: The uptick in T&M reflects our current commercial model. We aim to transition predominantly to managed services and outcome-based projects, distancing from pure staff augmentation, which we view as non-strategic.
| Central India Industries Limited |
| 1.85% |
| Kotak Funds - India Midcap Fund | 1.79% |
| Canara Robeco Mutual Fund A/C Canara Robeco Small Cap Fund | 1.26% |
Distribution across major stakeholders
Distribution across major institutional holders
| -13.30% |
| 24.1 |
| 3.72 |
| - |
| - |
| HCLTECH | HCL Tech | 4.55 LCr | 1.28 LCr | +2.20% | -2.80% | 27.59 | 3.55 | - | - |
| WIPRO | Wipro | 2.54 LCr | 95.1 kCr | -9.90% | -22.30% | 19.12 | 2.67 | - | - |
| TECHM | Tech Mahindra | 1.69 LCr | 55.53 kCr | +7.00% | +3.00% | 33.04 | 3.04 | - | - |
| 1,128 |
| 1,141 |
| 1,152 |
| 1,170 |
| 1,227 |
| 1,232 |
| Profit Before exceptional items and Tax | 10.5% | 232 | 210 | 166 | 166 | 156 | 170 |
| Exceptional items before tax | - | -40.69 | 0 | 0 | 0 | 0 | 0 |
| Total profit before tax | -8.6% | 192 | 210 | 166 | 166 | 156 | 170 |
| Current tax | -18.4% | 81 | 99 | 62 | 34 | 37 | 42 |
| Deferred tax | -67.9% | -8.72 | -4.79 | -1.79 | 10 | 1.74 | 0.26 |
| Total tax | -23.7% | 72 | 94 | 60 | 44 | 39 | 42 |
| Total profit (loss) for period | 3.5% | 120 | 116 | 106 | 122 | 117 | 128 |
| Other comp. income net of taxes | -42.4% | 39 | 67 | 30 | 13 | 15 | 11 |
| Total Comprehensive Income | -13.7% | 159 | 184 | 137 | 135 | 132 | 138 |
| Earnings Per Share, Basic | 3.8% | 4.28 | 4.16 | 3.81 | 4.38 | 4.2 | 4.59 |
| Earnings Per Share, Diluted | 4.2% | 4.26 | 4.13 | 3.78 | 4.34 | 4.15 | 4.52 |
| Debt equity ratio | 0% | 023 | 027 | 028 | 033 | - | - |
| Debt service coverage ratio | - | 1 | 1 | 1 | 1 | - | - |
| Interest service coverage ratio | - | 1 | 1 | 1 | 1 | - | - |
| 27.7% |
| 8.56 |
| 6.92 |
| 9.84 |
| 11 |
| 10 |
| 12 |
| Depreciation and Amortization | -4% | 73 | 76 | 76 | 69 | 70 | 69 |
| Other expenses | -15% | 365 | 429 | 429 | 272 | 230 | 249 |
| Total Expenses | 2.5% | 2,406 | 2,347 | 2,184 | 1,727 | 1,365 | 1,274 |
| Profit Before exceptional items and Tax | -2% | 388 | 396 | 267 | 397 | 287 | 223 |
| Total profit before tax | -2% | 388 | 396 | 267 | 397 | 287 | 223 |
| Current tax | -1.1% | 90 | 91 | 73 | 93 | 76 | 73 |
| Deferred tax | -126.3% | -0.47 | 6.59 | -6.44 | 7.66 | 17 | 9.16 |
| Total tax | -8.2% | 90 | 98 | 67 | 101 | 94 | 82 |
| Total profit (loss) for period | 0% | 299 | 299 | 200 | 296 | 194 | 141 |
| Other comp. income net of taxes | -2193.7% | -2.67 | 0.84 | -10.75 | -10.23 | 32 | -24.25 |
| Total Comprehensive Income | -1.3% | 296 | 300 | 190 | 286 | 226 | 116 |
| Earnings Per Share, Basic | -0.3% | 10.77 | 10.8 | 7.23 | 10.617 | 6.96 | 5.09 |
| Earnings Per Share, Diluted | 0.2% | 10.68 | 10.66 | 7.2 | 10.491 | 6.81 | 5.05 |
| Debt equity ratio | - | 069 | - | - | - | - | - |
| Debt service coverage ratio | - | 1 | - | - | - | - | - |
| Interest service coverage ratio | - | 1 | - | - | - | - | - |
| 415% |
| 8.21 |
| 2.4 |
| 5.66 |
| 8.16 |
| 6.49 |
| 6.5 |
| Non-current investments | 2.7% | 682 | 664 | 636 | 652 | 405 | 440 |
| Loans, non-current | - | 0 | 0 | 0 | 0 | 0 | 0 |
| Total non-current financial assets | 1.7% | 712 | 700 | 677 | 668 | 421 | 456 |
| Total non-current assets | 2.6% | 991 | 966 | 935 | 890 | 694 | 760 |
| Total assets | 4.3% | 2,256 | 2,164 | 2,140 | 2,018 | 1,853 | 1,620 |
| Borrowings, non-current | -20.7% | 6.74 | 8.24 | 7.81 | 0 | 0 | 0 |
| Total non-current financial liabilities | 3.6% | 88 | 85 | 81 | 25 | 43 | 58 |
| Provisions, non-current | 10.8% | 83 | 75 | 74 | 71 | 57 | 49 |
| Total non-current liabilities | 7.5% | 172 | 160 | 155 | 96 | 100 | 106 |
| Borrowings, current | -1.4% | 3.14 | 3.17 | 2.06 | 0 | 0 | 0 |
| Total current financial liabilities | 9.7% | 296 | 270 | 354 | 376 | 321 | 205 |
| Provisions, current | 13% | 27 | 24 | 24 | 21 | 22 | 18 |
| Current tax liabilities | 223.1% | 43 | 14 | 22 | 14 | 26 | 21 |
| Total current liabilities | 14% | 408 | 358 | 437 | 454 | 408 | 292 |
| Total liabilities | 12% | 580 | 518 | 592 | 550 | 509 | 399 |
| Equity share capital | 0% | 56 | 56 | 55 | 55 | 55 | 55 |
| Total equity | 1.9% | 1,677 | 1,646 | 1,548 | 1,468 | 1,345 | 1,221 |
| Total equity and liabilities | 4.3% | 2,256 | 2,164 | 2,140 | 2,018 | 1,853 | 1,620 |
| -25.1% |
| 338 |
| 451 |
| 457 |
| 360 |
| - |
| - |
| Income taxes paid (refund) | 0% | 92 | 92 | 80 | 95 | - | - |
| Net Cashflows From Operating Activities | -31.6% | 246 | 359 | 377 | 265 | - | - |
| Proceeds from sales of PPE | -83.8% | 1.97 | 6.99 | 1.2 | 1.99 | - | - |
| Purchase of property, plant and equipment | 150% | 41 | 17 | 55 | 60 | - | - |
| Dividends received | 62.5% | 66 | 41 | 0 | 0.04 | - | - |
| Interest received | 29% | 41 | 32 | 23 | 33 | - | - |
| Other inflows (outflows) of cash | 73.5% | -108.06 | -410.28 | 421 | -205.84 | - | - |
| Net Cashflows From Investing Activities | 88% | -40.67 | -347.45 | 390 | -230.76 | - | - |
| Proceeds from issuing shares | 13% | 11 | 9.85 | 13 | 7.9 | - | - |
| Payments to acquire or redeem entity's shares | - | 0 | 0 | 474 | 0 | - | - |
| Proceeds from borrowings | - | 14 | 0 | 0 | 0 | - | - |
| Repayments of borrowings | - | 2.94 | 0 | 0 | 0 | - | - |
| Payments of lease liabilities | -5.7% | 34 | 36 | 36 | 34 | - | - |
| Dividends paid | 45.5% | 180 | 124 | 125 | 111 | - | - |
| Interest paid | -5% | 0.79 | 0.8 | 1.13 | 1.3 | - | - |
| Net Cashflows from Financing Activities | -27.7% | -192.52 | -150.49 | -623.89 | -138.96 | - | - |
| Effect of exchange rate on cash eq. | 50.8% | 0.11 | -0.81 | -1.08 | 0 | - | - |
| Net change in cash and cash eq. | 108.5% | 13 | -140.08 | 142 | -104.81 | - | - |
Analysis of BIRLASOFT's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2025
| Description | Share | Value |
|---|---|---|
| Manufacturing | 37.7% | 508.6 Cr |
| Banking, Financial Services and Insurance | 24.3% | 328.1 Cr |
| Life Sciences & Services | 21.2% | 285.6 Cr |
| Energy and Utilities | 16.7% | 225.2 Cr |
| Total | 1.3 kCr |