Birlasoft (BSOFT) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 revenue was $150.7 million (₹12,848.98 million), down 1% sequentially, with EBITDA margin at 12.4% and consolidated net profit at $12.5 million (₹1,064.34 million).

• Three of four verticals (BFSI, Life Sciences & Services, Energy & Utilities) grew sequentially, while Manufacturing, the largest vertical, declined due to project ramp-downs and closures.

• Digital & Data service line grew 2.6% QoQ, with a robust deal pipeline despite macroeconomic challenges.

• Leadership transition: Kamini Shah steps down as CFO, succeeded by Chandrasekar Thyagarajan, effective August 8, 2025.

• Cash and cash equivalents rose to $266.6 million, up 16% YoY and 2.8% sequentially, reflecting strong cash generation.

Financial highlights

• Q1 revenue: $150.7 million (₹12,849M), down 1% QoQ and 5.3% YoY; EBITDA at $18.6 million (12.4% margin), PAT at $12.5 million (8.3% margin), Adjusted PAT at $14.4 million (9.5% margin).

• Cash and cash equivalents at $266.6 million, up 3.1% QoQ and 19.4% YoY.

• DSO increased to 58 days from 54 days in the previous quarter due to delayed collections.

• Basic EPS at $3.81 (₹3.81), Adjusted EPS at $4.39.

• Attrition rate increased to 13.3% from 12.8% in Q4 FY25.

Outlook and guidance

• Management targets sequential revenue growth in Q2, but full-year growth remains uncertain due to macro headwinds and a lower starting base.

• Margins expected to remain in the 12.4%-13% range for FY2026.

• Focus is on operational efficiency, cashflow generation, and prudent capital allocation.

• Investments are being prioritized for medium-term returns.

• No explicit annual guidance provided; focus remains on quarterly execution and order book expansion.