Birlasoft (BSOFT) Q4 24/25 earnings summary

Executive summary

• FY25 revenue grew 1.8% year-over-year to ₹53,752 million ($635 million), with Q4 revenue at ₹13,169 million, down 3.4% quarter-on-quarter and year-on-year, amid a soft demand environment and macroeconomic headwinds, especially in manufacturing and MedTech.

• Net profit for FY25 was ₹6,237.60 million, up from ₹5,167.60 million in FY24, while Q4 PAT increased 4.4% quarter-on-quarter to ₹1,221 million.

• Leadership changes and investments in emerging technologies like GenAI and domain expertise were prioritized to drive future growth.

• Q4 deal TCV reached $236 million, up 4% sequentially, with a 75% increase in new deals and a major multi-year AI-driven deal in Europe.

• The Board recommended a final dividend of ₹4 per share, in addition to an interim dividend of ₹2.5 per share paid earlier.

Financial highlights

• FY25 consolidated revenue was ₹53,752 million ($635.4 million), up 1.8% year-over-year, with Q4 revenue at $152.2 million, down 5.4% quarter-on-quarter.

• FY25 EBITDA margin was 13.0%, with Q4 EBITDA margin at 13.2% (up 119 bps sequentially); PAT margin for FY25 was 9.6%.

• Basic EPS for FY25 was ₹18.64; Q4FY25: ₹4.38.

• Cash and cash equivalents at year-end were ₹22,177 million, up 27.1% year-over-year.

• DSO at 54 days, among best in class.

Outlook and guidance

• Q1 FY26 revenue expected to remain flat or slightly negative, with growth anticipated to resume from Q2 as new deals ramp up.

• Management aims for FY26 to be better than FY25, though significant headwinds require exceptional execution for meaningful growth.

• Margins are expected to remain flattish around 13% in FY26, with potential for improvement in FY27 as growth returns.

• Continued investment in capabilities such as Generative AI and digital transformation.

• The Board's dividend recommendation signals confidence in ongoing cash flows and profitability.