Total Contract Value (TCV)
$208M
+3% QoQ
Second consecutive quarter above $200M; net new TCV was soft due to delayed decisions.
BIRLASOFT
Information Technology
2026-04-??
Birlasoft Limited — Q4 FY26
Birlasoft reported a mixed Q4 FY26 with revenue of ₹1,348.6 crore (+0.1% QoQ, +2.4% YoY) but dollar revenue declined 2.7% QoQ to $145.3 million.
✓ Verified against BSE filing
2-Min Summary
Birlasoft reported a mixed Q4 FY26 with revenue of ₹1,348.6 crore (+0.1% QoQ, +2.4% YoY) but dollar revenue declined 2.7% QoQ to $145.3 million. EBITDA margin expanded 30bps QoQ to 18.5%, aided by one-offs and forex tailwinds. PAT surged 46.7% QoQ to ₹175.9 crore. Full-year revenue fell 1.2% in INR and 6% in USD, impacted by client-specific issues, productivity pass-throughs, and deliberate exit from low-margin business. Management highlighted a soft demand environment and delayed decision-making. They are investing heavily in sales (30-40% increase in headcount by mid-FY27) and new leadership to drive growth. However, they refrained from providing revenue guidance due to volatility. Key risk: sustained macro headwinds and competitive intensity from larger players could delay the expected turnaround.
Key Numbers
Sales Headcount Increase
30-40%
+30-40% YoY
Targeted increase in sales team strength by mid-FY27 to boost pipeline.
DSO (Days Sales Outstanding)
62 days
+7 days QoQ
Adjusted for spillover collections, DSO would have been 55 days.
Dividend per Share (Full Year)
₹6.50
flat YoY
Board proposed final dividend of ₹4 per share, total FY26 dividend ₹6.50.
Management Guidance
Sales team to increase 30-40% by mid-FY27
Management plans to expand sales headcount significantly, with most additions in US and Europe, to drive pipeline and order booking.
growthSteady-state EBITDA margin above 15%
CFO reiterated that sustainable EBITDA margin is expected to be upward of 15%, with current elevated levels eroding due to investments and productivity pass-throughs.
marginsEffective tax rate to normalize from FY27
CFO stated that elevated ETR due to US tax provisions was limited to FY26, and ETR should settle closer to historical levels starting FY27.
otherKey Risks
Sustained macroeconomic headwinds and tariff uncertainty
Management cited volatile demand due to trade tariffs and geopolitics, which could continue to delay client decisions and impact revenue.
high · management_commentaryCompetitive intensity from larger players
Analyst raised that larger vendors are competing for smaller deals; management confirmed this trend, which could pressure win rates and pricing.
medium · analyst_questionRevenue deflation from AI productivity commitments
Management acknowledged that AI deals require upfront productivity benefits, leading to near-term revenue compression before potential recovery.
medium · management_commentaryExecution risk in sales ramp-up and leadership changes
Multiple new leaders and a 30-40% sales expansion may take time to yield results; past restructuring cycles have not delivered growth.
high · data_observationNotable Quotes
We are at the bottom of the pit right now... I'm only hoping that the company will get better from here on.
Our entire endeavor will be to generate more pipeline, more order booking. It'll be a completely growth-oriented, sales-oriented organization going forward.
I continue to believe that our steady state margins that we should expect is going to be upward of 15%.