Birlasoft (BSOFT) Q3 25/26 earnings summary

Executive summary

• Q3 FY2026 revenue was $150.8M (₹13,475 Mn), up 1.4% QoQ, with EBITDA margin expanding to 18.2% from 16.0% in Q2, reflecting strong operating efficiencies and robust cash flow generation.

• TCV for Q3 reached $202M, up 89% QoQ, with 46% from new engagements, driven by domain and AI-led capabilities.

• Cash and cash equivalents increased 6% QoQ and 21% YoY to ₹24,914 Mn ($277.2M), supported by the highest quarterly collections in the fiscal year.

• Unaudited consolidated financial results for the quarter and nine months ended 31 December 2025 were reviewed and approved by the Board on 28 January 2026.

• Statutory auditors issued an unmodified review conclusion on both consolidated and standalone results.

Financial highlights

• Consolidated revenue: $150.8M (₹13,475 Mn), up 1.4% QoQ; constant currency revenue up 0.3% QoQ.

• EBITDA: $27.4M, up 13.3% QoQ and 42.1% YoY; EBITDA margin expanded 212 bps QoQ to 18.2%.

• PAT at ₹1,199 Mn ($13.4M), with adjusted PAT at ₹1,802 Mn ($20.2M) after excluding labor code and one-time tax impacts.

• Adjusted basic non-annualized EPS: INR 6.44 per share; basic EPS for the quarter at ₹4.28.

• DSO improved to 54 days, among the best in the industry.

Outlook and guidance

• No material change in demand environment; discretionary spending remains constrained.

• Manufacturing and ERP expected to remain soft in Q4 due to one-off ramp-ups in Q3; recovery anticipated from Q1/Q2 next year.

• ENU and financial services expected to show steady growth; life sciences to face headwinds in Q4 but expected to stabilize and grow from Q2 next year.

• Q4 signings expected to exceed Q3; focus on pipeline and order booking.

• The group continues to monitor the finalisation of Central and State rules and government clarifications on the new Labour Codes and will update accounting treatment as required.