Birlasoft (BSOFT) Q4 25/26 earnings summary

Executive summary

• Revenue growth was muted due to a soft demand environment, macroeconomic headwinds, and client-specific issues, resulting in a 6% YoY decline in dollar terms for FY26, though Q4 FY26 saw 2.4% YoY growth in INR.

• Strategic exits from non-profitable deals and investments in leadership, sales, and AI capabilities aimed to pivot towards growth and margin expansion.

• Board recommended a final dividend of ₹4 per share, with an interim dividend of ₹2.5 per share paid earlier.

• Audited standalone and consolidated financial results for FY26 were approved with an unmodified audit opinion.

• New senior management appointments, including COO and Senior Management Personnel, were made to drive innovation and delivery.

Financial highlights

• Q4 FY26 revenue was $145.3M, down 3.7% QoQ in constant currency; full year FY26 revenue was $597.5M (down 6% YoY in USD) and ₹53,099.58 million (down slightly YoY).

• Q4 EBITDA margin expanded to 18.5%, with full year EBITDA margin at 16.3%, a 333 bps YoY increase.

• Q4 PAT rose 46.7% QoQ to ₹1,759 million; adjusted full year PAT up 27.6% YoY to ₹6,595 million.

• Cash and cash equivalents at year-end were ₹26,373 million, up 19% YoY.

• Exceptional item: ₹406.88 million expense due to new Labour Codes, classified as non-recurring.

Outlook and guidance

• No formal revenue guidance due to market volatility, but management expects FY27 to improve as investments in sales and leadership take effect.

• H2 is expected to be stronger for order booking; focus remains on AI-led capabilities and operational efficiencies.

• Margin guidance is for steady-state EBITDA margins above 15% as growth investments ramp up.

• Dividend payout and operational efficiency signal confidence in future cash flows.