Birlasoft Quarterly Results Q1 FY26

Birlasoft, a prominent player in the IT services domain, has reported its Q1 FY26 financial performance. While the quarter faced challenges, the results reflect both pressures and strategic strengths. Below is a detailed breakdown of key numbers, trends, and what they may imply moving forward.

Key Financial Highlights (Q1 FY26)

• Revenue (Consolidated): ₹ 12,849 million, down 2.4% quarter-on-quarter (QoQ) and about 3.2% year-on-year (YoY). Birlasoft+2Sharekhan+2
• EBITDA: ₹ 1,588 million, resulting in an EBITDA margin of 12.4%, reflecting margin compression relative to prior periods. Birlasoft+2Sharekhan+2
• Profit After Tax (PAT): ₹ 1,064 million; basic EPS amounted to about ₹ 3.81. Birlasoft+2Birlasoft+2
• Adjusted PAT: After excluding one-time incremental tax for FY26, adjusted PAT was ~ ₹ 1,226 million. Birlasoft+1
• Cash & Cash Equivalents: ₹ 22,864 million, up ~3.1% QoQ and ~19.4% YoY. Birlasoft+1

• Some industry verticals showed growth in U.S. dollar terms: Energy & Utilities, Life Sciences & Services, and Banking, Financial Services & Insurance (BFSI) posted sequential gains. On the flip side, the Manufacturing vertical, which is Birlasoft’s largest, declined due to project closures and ramp-downs. Birlasoft+2Birlasoft+2
• In terms of service lines, Digital & Data grew QoQ. Also, the revenue share from top customers (Top-5, Top-10, Top-20) increased. Birlasoft+1
• There was a slight increase in collection cycle (Days Sales Outstanding – DSO rose from 54 to 58 days) which may affect cash flow. Birlasoft+2Birlasoft+2

• EBITDA margin declined compared to prior quarters/years. QoQ margin contraction reflects increased cost pressures or mix changes. Birlasoft+2arihantcapital.co.in+2
• Effective tax rates increased, which also weighed on net profit. Adjusted profit gives a clearer view but still shows the margin pressure. Birlasoft+1

• Active Client Count: 247, down from 254 in Q4 FY25. Birlasoft+1
• Workforce / Attrition: Headcount stood at 11,834 and attrition at ~13.3% during Q1 FY26. Birlasoft+1
• Deal Wins (TCV): Total Contract Value of new + renewal deals in the quarter came to US$ 141 million (new wins ~US$ 76 million; renewals ~US$ 65 million). Birlasoft+1

• Birlasoft highlighted that even though macroeconomic challenges persist, its deal pipeline remains active. Birlasoft
• The company is investing in AI-powered solutions, including “Agentic AI” and Gen AI, which are becoming central to several customer engagements. Birlasoft+1
• Cash flow generation and prudent capital allocation are being emphasised as priorities. Birlasoft+1

• Revenue and margin growth may depend heavily on how soon client decisions pick up, particularly in larger segments like Manufacturing, where project ramp-ups have lagged.
• Elevated tax burdens could continue to compress net margins unless there are offsetting levers (cost savings, higher-margin work, efficiencies).
• As the company grows its AI and digital service offerings, execution risk, competition, and investment cost will be factors to monitor.