Birlasoft LimitedQ2 FY27 Results & Financial Update
Birlasoft Limited: Q2 FY27 consolidated results and company financials – revenue ₹1,416.20 Cr, PAT ₹159.65 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore Birlasoft Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Birlasoft reported consolidated revenue from operations of ₹14,162 million for the second quarter ended September 30, 2026, marking a 2.7% sequential expansion over the preceding quarter and a 6.6% increase compared to the corresponding period of the previous fiscal year. In constant currency and dollar terms, sequential quarterly revenue grew by 2.1% to $148.3 million.
Top-line growth during the quarter was anchored by expansion across core verticals including Manufacturing, BFSI, and Lifesciences & Services, alongside steady traction in Digital & Data and ERP service lines. However, sequential momentum was partially dampened by softness in the Energy & Utilities vertical.
Profitability for the quarter demonstrated significant year-on-year gains despite margin pressures from organization-wide wage increments and continued investments in sales capabilities. Consolidated profit for the period (PAT) reached ₹1,596 million, representing a 37.5% surge over the ₹1,161 million recorded in Q2 FY25, though it edged down 0.8% sequentially from ₹1,610 million due to higher financing costs and a normalization of tax expenses compared to the previous quarter.
EBITDA for the quarter stood at ₹2,153 million ($22.5 million), translating to an EBITDA margin of 15.2%. Management noted that margins absorbed the impact of company-wide salary hikes rolled out during the period alongside ongoing expenditures directed toward building sales and domain expertise.
The company demonstrated exceptional working capital discipline, with Days Sales Outstanding (DSO) improving to 51 billed days—marking a two-year low compared to 55 days in the previous quarter—on the back of robust cash collections. Cash and cash equivalents remained exceptionally strong, closing the quarter at ₹28,791 million ($300.4 million).
Total Contract Value (TCV) deal wins for the quarter aggregated to $116 million, comprising $47 million in new deal wins and $69 million in contract renewals. Cumulative deal wins for the first half of fiscal year 2027 reached $285 million, representing a 15% increase year-on-year.
In recognition of its technical capabilities, Birlasoft attained notable ecosystem validations during the quarter, including being named an OpenAI Select Partner and earning the AWS AI Services competency, which underpinned several strategic artificial intelligence and cloud modernization wins.
01 · Business model
What does Birlasoft do?
Birlasoft Limited is a global technology services and digital solutions provider that operates as part of the CKA Birla Group. The company enables next-generation digital transformation through specialized capabilities in Cloud, Artificial Intelligence, Data, and enterprise platforms such as ERP.
The company serves a diverse global clientele across core industry verticals including Manufacturing, Banking, Financial Services and Insurance (BFSI), Lifesciences & Services (LSS), and Energy & Utilities (E&U). Its revenue models encompass both Time & Material and Fixed Price contracts, delivered through a blend of onsite client proximity centers and offshore delivery hubs.
Birlasoft combines industry domain proficiency with advanced engineering frameworks—such as its AI-Driven Delivery Lifecycle (AI-DLC)—to modernize mission-critical systems, build scalable enterprise architectures, and accelerate value realization for international corporations.
02 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q2 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹1,416.20 Cr | ₹1,328.90 Cr | ₹1,379.40 Cr |
| Total income | ₹1,458.67 Cr | ₹1,350.93 Cr | ₹1,408.42 Cr |
| Profit before tax | ₹224.99 Cr | ₹210.02 Cr | ₹228.17 Cr |
| Profit after tax | ₹159.65 Cr | ₹116.10 Cr | ₹161.00 Cr |
| EPS | ₹5.57 | ₹4.16 | ₹5.70 |
03 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue expansion was led by the Manufacturing vertical (up 5.2% QoQ in dollar terms, reaching 38.7% of total revenue), BFSI (up 3.6% QoQ, representing 25.7% of revenue), and Lifesciences & Services (up 2.1% QoQ, accounting for 19.6% of revenue). Conversely, the Energy & Utilities vertical registered a sequential decline, reducing its revenue contribution to 16.0%.
Growth across service lines was driven by Digital & Data, which grew 3.4% sequentially to represent 57.4% of total revenue, and ERP services, which expanded 2.9% QoQ to account for 32.0% of the revenue mix. Infrastructure services comprised the remaining 10.6%.
Revenue concentration among top-tier accounts increased sequentially, with the top 5, top 10, and top 20 customers accounting for 44.2%, 57.0%, and 69.8% of last-twelve-months revenue respectively, reflecting deepening relationships with core enterprise clients.
What drove margins
EBITDA margin softened by 95 basis points sequentially to 15.2% (from 16.1% in Q1 FY27), primarily driven by the absorption of organization-wide compensation increments rolled out during the quarter and sustained investments in sales and domain competencies.
Total tax expense for the quarter stood at ₹654 million, reflecting an effective tax rate of 29.0%, compared to ₹939 million (44.7% effective rate) in the year-ago period and ₹672 million (29.4% effective rate) in the previous quarter.
04 · Demand, customers & order book
Where demand is coming from
Signed deal TCV for the quarter was $116 million, comprising $47 million in new deals and $69 million in renewals. H1 FY27 cumulative deal wins reached $285 million, up 15% year-on-year.
Total active clients stood at 209 at the end of Q2 FY27. Clients contributing over $1 million annually (LTM) stood at 68, $5 million+ clients at 22, and $10 million+ clients at 12.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Manufacturing represents the largest vertical at 38.7% of revenue, followed by BFSI at 25.7%, Lifesciences & Services at 19.6%, and Energy & Utilities at 16.0%.
Digital and Data constitutes 57.4% of revenue, ERP accounts for 32.0%, and Infrastructure services make up 10.6%.
Geography and market mix
The Americas region accounted for 83.5% of quarterly revenue (up from 82.9% in Q1 FY27), while the Rest of the World contributed 16.5%.
06 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Total headcount stood at 11,142 professionals as of September 30, 2026, including 10,117 technical personnel and 1,025 sales and support staff. Employee utilization improved to 82.5% from 81.7% in Q1 FY27.
LTM attrition (adjusted for exits under 6 months) declined further to 11.1% from 11.7% in the previous quarter and 13.3% in Q2 FY26.
07 · Strategy & new businesses
How the company is trying to change its growth mix
Birlasoft was named an OpenAI Select Partner to help enterprises build, deploy, and scale AI solutions responsibly, leveraging technologies such as GPT-6 Astra for enhanced business outcomes.
The company earned the AWS AI Services competency, validating its capacity to deliver Generative AI and Agentic AI solutions at production scale on AWS, which directly contributed to securing a multi-year AI engagement with a global logistics customer.
08 · Reported developments
What changed operationally
H1 FY27 total contract value deal wins grew 15% year-on-year to reach $285 million.
Billed DSO reached a two-year best of 51 days, bolstering operational cash flow generation.
09 · Pressure points & risks
What is not going smoothly
The E&U vertical experienced a sequential revenue decline, offsetting some of the gains achieved in Manufacturing and BFSI.
Active client count decreased to 209 from 213 in the previous quarter as part of an ongoing rationalization and consolidation of accounts.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Billed DSO improved significantly to 51 days—the lowest in the past two years—down from 55 days in Q1 FY27 and Q2 FY26, driven by robust collections.
Cash and cash equivalents stood at ₹28,791 million ($300.4 million) as of September 30, 2026, representing a 23% increase year-on-year compared to ₹23,434 million at the end of Q2 FY26.
11 · Beyond the numbers
What changed beyond the numbers
Reported update
Strategic Deal Wins
Key wins during the quarter included a core digital transformation mandate from a major North American medical devices manufacturer, an IT infrastructure modernization engagement for a global professional services firm in an M&A context, and a multi-year Smart Factory manufacturing execution system implementation for a medical technology organization.
Reported update
Dividend Declaration
The Board of Directors recommended an interim dividend of ₹3.00 per share for the quarter.
12 · Previous-quarter changes
What changed since the previous quarter
EBITDA margin moderated by 95 basis points QoQ to 15.2% due to organization-wide wage revisions.
Billed DSO improved by 4 days sequentially from 55 days in Q1 FY27 to 51 days in Q2 FY27.
13 · Key Q&A
The quarter, answered directly
What does Birlasoft do?
Birlasoft Limited is a global technology services and digital solutions provider that operates as part of the CKA Birla Group. The company enables next-generation digital transformation through specialized capabilities in Cloud, Artificial Intelligence, Data, and enterprise platforms such as ERP.
What is the clearest takeaway from Q2 FY27?
Birlasoft reported consolidated revenue from operations of ₹14,162 million for the second quarter ended September 30, 2026, marking a 2.7% sequential expansion over the preceding quarter and a 6.6% increase compared to the corresponding period of the previous fiscal year. In constant currency and dollar terms, sequential quarterly revenue grew by 2.1% to $148.3 million.
What drove revenue or demand?
Revenue expansion was led by the Manufacturing vertical (up 5.2% QoQ in dollar terms, reaching 38.7% of total revenue), BFSI (up 3.6% QoQ, representing 25.7% of revenue), and Lifesciences & Services (up 2.1% QoQ, accounting for 19.6% of revenue). Conversely, the Energy & Utilities vertical registered a sequential decline, reducing its revenue contribution to 16.0%.
What mattered most for margins or profitability?
EBITDA margin softened by 95 basis points sequentially to 15.2% (from 16.1% in Q1 FY27), primarily driven by the absorption of organization-wide compensation increments rolled out during the quarter and sustained investments in sales and domain competencies.
What changed operationally beyond the headline numbers?
Total headcount stood at 11,142 professionals as of September 30, 2026, including 10,117 technical personnel and 1,025 sales and support staff. Employee utilization improved to 82.5% from 81.7% in Q1 FY27.
What are the main pressure points disclosed for the quarter?
The E&U vertical experienced a sequential revenue decline, offsetting some of the gains achieved in Manufacturing and BFSI.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Vertical Recovery: Monitor sequential performance in the Energy & Utilities vertical to gauge stabilization.
- 02
Deal Conversion: Track the conversion and execution of the $285 million H1 FY27 TCV deal pipeline into reported revenue.
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