Birlasoft (BSOFT) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 1.5% year-over-year to ₹13,627 million ($160.8 million), despite higher-than-usual furloughs and seasonal weakness, with strong order bookings of $226 million in TCV, the highest for the year.

• EBITDA margin held steady at 12.0% for the quarter, with operational efficiencies offsetting compensation increases.

• Cash and cash equivalents rose 21.7% year-over-year to ₹20,552 million ($240 million), supported by strong collections and improved DSO to 53 days.

• Management is focused on mitigating headwinds, improving predictability, and driving sequential growth through capability enhancements and partnerships.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on February 11, 2025.

Financial highlights

• Consolidated Q3 revenue was ₹13,627 million ($160.8 million), up 1.5% YoY in INR, down 0.3% YoY in USD, and down 0.1% YoY in constant currency.

• EBITDA for the quarter was ₹1,634 million ($19.3 million), margin at 12.0%, marginally lower than Q2.

• PAT stood at ₹1,169 million ($13.8 million), down 9.3% quarter-on-quarter, with basic EPS at ₹4.20.

• Cash and bank balances reached $240 million, up 8.2% sequentially and 21.7% year-over-year.

• Operating cash flow was $29.9 million, 155% of EBITDA, with DSO at 53 days.

Outlook and guidance

• Demand environment remains subdued but shows early signs of improvement in BFSI and discretionary spend.

• Furloughs and project rundowns are expected to impact Q4, but management aims to mitigate these and focus on execution and deal conversion.

• Management expects improved predictability and growth in FY26, with margin improvement as a key focus.

• Continued investment in capability enhancements and partnerships to drive future growth.