Birlasoft Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Birlasoft Ltd filed with BSE on 13 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Birlasoft reported Q4 FY26 revenue of INR 13,486 million, up 0.1% quarter-on-quarter and 2.4% year-on-year in rupee terms, though revenue declined in dollar terms. EBITDA margin expanded to 18.5% in Q4 and to 16.3% for the full year, while management said the revenue decline reflected a soft demand environment, client-specific issues in Life Sciences and MedTech, and the deliberate exit from low-margin and non-strategic accounts. The company signed $208 million of TCV in Q4, its second consecutive quarter above $200 million, and announced new leadership hires across ERP, Data and AI, Life Sciences and a new COO.
Numbers mentioned
Revenue: INR 13,486 million (Q4 FY26)
p. 4
“reaching INR 13,486 million”
Angan Guha, page 4 of the filed PDF · View the filing
Revenue: INR 53,100 million (FY26)
p. 4
“For the full year FY '26, our revenues were down 1.2% in rupee terms to INR 53,100 million.”
Angan Guha, page 4 of the filed PDF · View the filing
EBITDA margin: 18.5% (Q4 FY26)
p. 4
“our EBITDA margins expanded further in Q4 on back of expansions recorded in Q2 and Q3 to 18.5%”
Angan Guha, page 4 of the filed PDF · View the filing
EBITDA margin: 16.3% (FY26)
p. 4
“EBITDA margins for the full year FY '26 increased to 16.3% from 13% in FY '25, a 333-basis points expansion”
Angan Guha, page 4 of the filed PDF · View the filing
Profit after tax: INR 1,759 million (Q4 FY26)
p. 4
“The strong margin performance has led to a 46.7% Q-o-Q rise in our profit after tax for Q4 to INR 1,759 million.”
Angan Guha, page 4 of the filed PDF · View the filing
Normalized PAT: INR 6,595 million (FY26)
p. 4
“which came in at INR 6,595 million”
Angan Guha, page 4 of the filed PDF · View the filing
Total deal signings (TCV): $208 million (Q4 FY26)
p. 4
“We've signed deals worth $208 million TCV during Q4, which is 3% higher than what we signed in Q3 of FY '26.”
Angan Guha, page 4 of the filed PDF · View the filing
Revenue: $145.3 million (Q4 FY26)
p. 5
“resulted in revenue for the quarter declining 3.7% quarter-on-quarter in constant currency and in dollar terms, to $145.3 million”
Chandrasekar T., page 5 of the filed PDF · View the filing
Revenue (INR): INR 1,348.6 crore (Q4 FY26)
p. 5
“In INR terms, the revenues have been flat, up 0.1% quarter-on-quarter to INR 1,348.6 crore.”
Chandrasekar T., page 5 of the filed PDF · View the filing
EBITDA margin: expansion of 30 basis points quarter-on-quarter (Q4 FY26)
p. 6
“As a result, EBITDA margin for Q4 increased to 18.5%, which is an expansion of 30 basis points quarter-on-quarter.”
Chandrasekar T., page 6 of the filed PDF · View the filing
Consolidated revenue: $597.5 million (FY26)
p. 6
“we have reported consolidated revenue of $597.5 million and INR 5,310 crore, representing a degrowth of 6% in dollar terms and 1.2% in rupee terms, respectively, over the previous year”
Chandrasekar T., page 6 of the filed PDF · View the filing
EBITDA: $97.5 million (FY26)
p. 6
“Our EBITDA for the year, which stood at $97.5 million, is up 18.2% year-on-year, translating into an EBITDA margin of 16.3%.”
Chandrasekar T., page 6 of the filed PDF · View the filing
PAT: $58.3 million (FY26)
p. 6
“PAT for the year stood at $58.3 million, lower than $61.1 million in the previous year due to the combined impact of changes in Labor Code”
Chandrasekar T., page 6 of the filed PDF · View the filing
Normalized PAT: $74.2 million, up 21.5% year-on-year (FY26)
p. 6
“normalized PAT for the year would have been $74.2 million, up 21.5% year-on-year or INR 659.5 crore, up 27.6% year-on-year”
Chandrasekar T., page 6 of the filed PDF · View the filing
Adjusted basic EPS: INR 22.14 per share (FY26)
p. 6
“This would translate into an adjusted basic EPS of INR 22.14 per share.”
Chandrasekar T., page 6 of the filed PDF · View the filing
Cash and cash equivalents: INR 2,637.3 crore, up 19% year-on-year (FY26)
p. 6
“We ended the year with cash and cash equivalents of INR 2,637.3 crore, up 19% year-on-year.”
Chandrasekar T., page 6 of the filed PDF · View the filing
DSO: 62 days (55 days adjusted) (FY26)
p. 6
“If we would adjust for the collections realized by 3rd of April 2026, our DSO would have been 55 days.”
Chandrasekar T., page 6 of the filed PDF · View the filing
Final dividend: INR 4 per share (FY26)
p. 6
“the Board of Directors has proposed a final dividend of INR 4 per share, subject to shareholders' approval”
Chandrasekar T., page 6 of the filed PDF · View the filing
Total dividend for the year: INR 6.50 per share (FY26)
p. 6
“takes our overall dividend for the full financial year to INR 6.50 per share”
Chandrasekar T., page 6 of the filed PDF · View the filing
PAT (quarterly, USD): $19 million (Q4 FY26)
p. 6
“PAT for the quarter increased from $13.4 million in Q3 to $19 million in Q4.”
Chandrasekar T., page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Sales team headcount — 30% to 40% increase year-on-year · by middle of FY'27
stated firmly by Angan Guha
p. 4
“By the middle of FY '27, I reckon that our sales team strength would have gone up by 30% to 40% on a year-on-year basis.”
Angan Guha, page 4 of the filed PDF · View the filing
Steady-state EBITDA margin — upward of 15%
stated as an aspiration by Chandrasekar T.
p. 8
“our steady-state EBITDA margin performance for us would be in the 15% range”
Chandrasekar T., page 8 of the filed PDF · View the filing
Effective tax rate — closer to historical ETR level · starting FY'27
stated firmly by Chandrasekar T.
p. 6
“we expect ETR to settle closer to our historical ETR level starting FY’27”
Chandrasekar T., page 6 of the filed PDF · View the filing
Order booking performance — FY27
stated as an aspiration by Angan Guha
p. 10
“it will definitely be substantially better than the order book we delivered in FY26”
Angan Guha, page 10 of the filed PDF · View the filing
Sales headcount increase — 40% more sellers · by end of Q2
stated firmly by Angan Guha
p. 10
“by end of Q2, we'll probably have 40% more sellers than we have today”
Angan Guha, page 10 of the filed PDF · View the filing
Revenue growth — FY27
stated as an aspiration by Angan Guha
p. 7
“we are hoping that the bad news is behind us now and FY’27 will be better for us”
Angan Guha, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said order booking is typically softer in H1 and stronger in H2, and it's too early to call revenue trajectory.
Answered by Angan Guha
Asked by Girish Pai: How does FY27 growth play out and which half will be better?
p. 7
“in order booking, Girish, as you know, H1 is always soft and H2 is better from an order booking perspective. I don't see that changing.”
Angan Guha, page 7 of the filed PDF · View the filing
Management said the ERP business has been challenged for other reasons and expects improvement given a new leader and continued client interest.
Answered by Angan Guha
Asked by Girish Pai: What is the outlook for the ERP business given AI compression concerns raised by Palantir?
p. 8
“We strongly believe our ERP business will only continue to improve from here.”
Angan Guha, page 8 of the filed PDF · View the filing
Management identified it as the MedTech/medical devices sub-sector within Life Sciences.
Answered by Angan Guha
Asked by Sudheer Guntupalli: Which vertical faced the client-specific operational issue?
p. 8
“It is Life Sciences. And within Life Sciences, it is the MedTech sector, medical devices sector.”
Angan Guha, page 8 of the filed PDF · View the filing
Management said the issue is behind them and attributed soft net new TCV to delayed client decision-making rather than lost deals.
Answered by Angan Guha
Asked by Sudheer Guntupalli: Is the client-specific issue behind the company, and why was net new TCV soft?
p. 9
“It is only because so many of our clients are delaying decision-making because of the uncertainty. It's not that we have lost any deals.”
Angan Guha, page 9 of the filed PDF · View the filing
CFO reiterated 15%-plus as the steady-state target, noting current margins would erode as investments ramp up.
Answered by Chandrasekar T.
Asked by Sudheer Guntupalli: Is 15% margin guidance too conservative given recent outperformance?
p. 9
“I continue to believe, that our steady state margins that we should expect is going to be upward of 15% and there will be an erosion from where we are today”
Chandrasekar T., page 9 of the filed PDF · View the filing
Management estimated roughly 200 basis points of growth was lost from exiting low-margin, non-strategic deals.
Answered by Angan Guha
Asked by Dipesh Mehta: What was the quantified impact of exiting low-margin business on FY26 growth?
p. 10
“we can only say that at least 200 basis points of growth roughly went away because we walked away from low-margin, non-strategic deals”
Angan Guha, page 10 of the filed PDF · View the filing
Management acknowledged past leadership had not delivered and expressed confidence in the new hires and margin room to invest.
Answered by Angan Guha
Asked by Sandeep Shah: Why should this restructuring succeed when a previous one did not deliver growth?
p. 10
“clearly, the leaders that we had hired earlier have not delivered. And we had to make changes at multiple levels.”
Angan Guha, page 10 of the filed PDF · View the filing
Management said there was no client-specific issue among top 5 clients and characterized it as seasonal.
Answered by Angan Guha
Asked by Ravi Menon: Why did top 5 customer growth flatline this quarter?
p. 11
“I don't think we have a client-specific issue in our top 5 clients. I think the top 5 clients are pretty strong. It is a seasonal issue.”
Angan Guha, page 11 of the filed PDF · View the filing
CFO said dividend was set relative to PAT performance and cash allocation remains under Board consideration; CEO said volatility precludes guidance.
Answered by Chandrasekar T.
Asked by Priyank Chheda: Why hasn't dividend payout increased despite strong cash generation, and why no guidance is given?
p. 12
“the dividend payout that the Board has recommended, which is, as you rightly said, in line with what we did declared in FY25 is based on performance”
Chandrasekar T., page 12 of the filed PDF · View the filing
Management said overall spending is stable but shifting from traditional work to AI-related engagements.
Answered by Angan Guha
Asked by Gaurav Nigam: Is there a sustainable uptick in BFSI client spending?
p. 14
“I don't see a spending pattern change per se. The spending remains to be strong. Only the shift of the spending pool is moving from the more traditional side of the businesses to more AI-oriented work”
Angan Guha, page 14 of the filed PDF · View the filing
Management confirmed larger players are bidding for midsized deals due to AI creating a more level playing field.
Answered by Angan Guha
Asked by Girish Pai: Is competitive intensity increasing as larger vendors chase smaller deals?
p. 15
“we are absolutely seeing larger players also bidding for midsized deals”
Angan Guha, page 15 of the filed PDF · View the filing
CFO quantified roughly 340 basis points of one-off benefit in Q4 from forex and provision reversals, saying the non-forex portion will not repeat.
Answered by Chandrasekar T.
Asked by Pulkit Chawla: What were the one-offs behind the Q4 margin beat, and are they sustainable?
p. 16
“So it's about a 340-point benefit that we got in the fourth quarter.”
Chandrasekar T., page 16 of the filed PDF · View the filing
Risks flagged
Soft demand environment and macroeconomic headwinds affecting revenue
p. 3
“our performance during the quarter and year under review reflects a very soft demand environment due to sustained macroeconomic headwinds, leading to some client-specific issues and as a result, erosion of revenue”
Angan Guha, page 3 of the filed PDF · View the filing
Trade, tariff and geopolitical volatility affecting demand outlook
p. 5
“the developments related to trade, tariffs and geopolitics have made the situation even more volatile”
Angan Guha, page 5 of the filed PDF · View the filing
Client-specific operational issue in MedTech/manufacturing sub-sector of Life Sciences
p. 5
“an operational issue at one of our customers affected our volume growth”
Chandrasekar T., page 5 of the filed PDF · View the filing
Customers holding back discretionary spend and pushing for productivity benefits
p. 5
“customers have been holding back on discretionary spend and are pushing for productivity benefits”
Chandrasekar T., page 5 of the filed PDF · View the filing
Revenue deflation from upfront productivity commitments in AI deals
p. 15
“we have to commit and deliver a lot of productivity through our AI tools that we are working with our customers with”
Angan Guha, page 15 of the filed PDF · View the filing
Fewer working days in the quarter reducing volume
p. 5
“In Q4, we had fewer working days than Q3.”
Chandrasekar T., page 5 of the filed PDF · View the filing
Elevated effective tax rate from incremental U.S. federal tax provision
p. 6
“The elevated ETR due to incremental U.S. tax, as I had called out on our earlier calls, was limited and will be limited to FY’26”
Chandrasekar T., page 6 of the filed PDF · View the filing
Volatile and uncertain market making forward commentary unreliable
p. 16
“the market is very uncertain and it's volatile. And every quarter, I come and say something and there is a market event that happens that disrupts the equation”
Angan Guha, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.