BIRLASOFT LIMITED — Q3 FY26
Birlasoft reported a stable Q3 FY26 with revenue of ₹1,347.5 crore (+0.3% CC QoQ) and EBITDA margin expansion of 212 bps QoQ to 18.2%, driven by revenue quality improvement, cos...
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
83%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Offshore revenue mix jump implies higher volume growth?
Asked by SEP Sha, Aquarius Securities
Confirmed the analyst's assumption directly with specifics.
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Question
if I look at the offshore revenue mix it has jumped materially in this quarter. So is it fair to assume volume growth is materially higher versus the headline growth in constant currency terms
Angan Guha (CEO & MD)
your analysis is exactly right... from a volume perspective mathematically yes you're correct the volume growth is higher but since the offshore ratios are higher that obviously suppresses growth but improves margins
Answered
High priority
Which verticals have demand headwinds and which are confident?
Asked by SEP Sha, Aquarius Securities
Provided clear vertical-by-vertical outlook with specific timing.
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Question
which vertical you believe still carries some demand headwinds and which vertical is giving you confidence in terms of a better growth starting from 4Q and next financial year.
Angan Guha (CEO & MD)
manufacturing business will continue to show headwinds even in 4Q... ENU and financial services will continue the growth momentum... Life sciences I feel there will be headwind in 4q
Answered
High priority
Margin walk: one-offs and sustainable margin level?
Asked by Deep Ma, MK Global
Provided detailed margin walk and sustainable margin guidance.
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Question
last quarter in quarter two we have some oneoff of roughly around 150 bips. This time you indicated around 110 bips. So from quarter one onwards whether one should take is almost to 50 to 60 whips kind of oneoff benefit which is in there in the quarter three margin trajectory.
Chandru (CFO)
net oneoff there is a forex impact of 70 to 80 basis points... oneoffs of 110 basis points... steady state EITA margin from the 18.2% is down to 16 1.5%... we believe that 15% EITA margin should be a sustainable run rate margin
Answered
Medium priority
Were furloughs similar to last year?
Asked by Deep Ma, MK Global
Simple direct confirmation.
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Question
Whether furlows were similar to last year or we have seen higher than usual furlow this quarter.
Angan Guha (CEO & MD)
No furlows were in line.
Answered
Medium priority
Wage hike decision and timing?
Asked by Deep Ma, MK Global
Confirmed wage hike and provided timing.
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Question
any decision we make on wax.
Angan Guha (CEO & MD)
we've already taken a decision that we will do a wage hike next financial year... we will affect a wage hike between Q1 and Q2
Answered
High priority
Why did data & digital revenue decline? Is it one-off?
Asked by Priyanka, Valum Capital
Attributed decline to furloughs and expressed confidence in recovery.
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Question
data and digital has been the story... we have seen a decline after a growth that was reported in H1 what has been the readings through this how should we read this decline is it oneoff or related to fors
Angan Guha (CEO & MD)
our data and digital business fundamentally is strong... the reason why you see a little bit of degrowth is because it is in line with financial services which is affected by furloss... we are reasonably certain that that growth will be back in Q4
Partial answer
High priority
Deal wins: net new vs renewals, outlook for FY27?
Asked by Priyanka, Valum Capital
Gave qualitative signing outlook but declined revenue guidance.
no revenue guidancedeferred to future
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Question
the net new after excluding that has not been that great how do you read through this... what would be the growth outlook on the deal wins and the targets for FI27.
Angan Guha (CEO & MD)
our 4Q signings will be better than Q3 signings... as far as revenue targets are concerned, it is a little too early for us to think about that... we don't give a guidance
Answered
Medium priority
What is driving standalone business growth and margin?
Asked by Abhishek Shindar, Inred Capital
Explained revenue drivers and forex benefit clearly.
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Question
the growth rate in that business is phenomenal... the expansion in margin is even more better. So how can you give a color in terms of what is driving this efficiency in the standalone business
Chandru (CFO)
the standalone results is where a lot of the RO revenues are captured... we had a couple of customers where we achieved milestones and as a result we were able to book additional revenue... the impact of forex benefit pretty much sits in the standalone financials
Answered
High priority
Are you getting closer to large accounts with huge wallet?
Asked by Ravi Manolon, Mquiri
Confirmed progress toward large accounts with specific deal characteristics.
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Question
do you think that you've moved somewhat closer to your goal of trying to get into some large accounts with a huge addressable wallet?
Angan Guha (CEO & MD)
we are using our domain capability... it is bearing some fruit and we are able to win some outcome based deals... we are very pleased with the fact that now we are having conversations with our clients which are more domain orientated
Answered
High priority
How much of margin guidance is pricing concession vs investments?
Asked by Manik Tala, Access Capital
Clearly separated pricing pressure from investment spend.
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Question
How should we be thinking about these investments? Because you've also called out certain pricing or margin concessions... how much of that is just pricing or margin concession and how much of it is investments
Chandru (CFO)
none of the investment that we are looking at has anything to do with margin concession... providing concessional margin is not a way to gain revenue... the investments will be in people and in capabilities
Evasive
Medium priority
Any plans for buyback given cash pile?
Asked by Manish, Valum Capital
Acknowledged topic but gave no specifics or timeline.
deferred to boardno commitment
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Question
what we have thought about the possible buyback and what is restricting a possible buyback which is so common with the other IT companies
Chandru (CFO)
this is a topic that the board is fully seized off... we will continue to look at opportunistic... capital allocation is certainly part of the entire exercise
Partial answer
High priority
Is Q4 still a sequential growth quarter?
Asked by Pulkit Cha, BNK Securities
Affirmed signing growth but avoided confirming revenue growth.
no revenue guidanceshifted to signings
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Question
in the last quarter you did highlight that 3Q and 4Q will be sequentially growth quarters. I think today you're slightly shy of saying that... if you could just confirm if that is still true.
Angan Guha (CEO & MD)
we still maintain that H2 will be better than H1 as far as signings are concerned... on revenue you have to give us some time... the only reason I'm not giving a number is because we do not guide anything
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Steady state EBITDA margin of 15% sustainable | 15% | 18.2% | Understated vs filing |
| One-off benefit of 110 bps in Q3 | 110 bps | 212 bps | Understated vs filing |
| Forex impact of 70-80 bps in Q3 | 75 bps | 212 bps | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.