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.
bearish
high
✓ 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.
42%Questions answered5Evaded / deflected12Questions auditedMixedNumbers vs filing
Evasive
High priority
Revenue growth outlook for FY27 and quarterly phasing.
Asked by Girish Pai, BB Capital Markets
Management declined to give specific growth outlook or quarterly phasing, citing no guidance policy.
no guidance givenrefused to quantifydeferred to order booking
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Question
the year was down revenue negative 6.5%... How do you see FY27 play out? Do you think growth in FY27 will be positive? And if so, how will that growth play out across the four quarters or the two halves?
Angan (CEO)
we do not give our guidance... we are hoping that the bad news is behind us now and FY27 will be better for us... between H1 and H2... H1 is always soft and H2 is better from an order booking perspective... from a revenue standpoint it's hard to say at this stage.
Partial answer
High priority
Impact of sales investment on SG&A and exit margins in FY27.
Asked by Girish Pai, BB Capital Markets
Management gave a steady-state margin target but did not quantify the impact on SG&A or exit margins.
no specific SG&A impact quantifiedmargin target given but not exit margin
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Question
You spoke about sales engine being ramped up. How will this impact the SG&A related costs and the exit margins in FY27?
Chandu (CFO)
a steady state EBITDA margin performance for us would be in the 15% range... we're at 18.5% for Q4... as we make some of these investments we will continue to do that... our business model already in this ramp up... we will make on a consistent basis.
Evasive
Medium priority
AI impact on ERP business and revenue compression.
Asked by Girish Pai, BB Capital Markets
Management did not answer whether AI is compressing ERP revenues, instead discussed hiring a new leader.
did not address AI impact directlyattributed challenges to broader issuesno quantification
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Question
What are you seeing in the market today... in terms of AI impact on your ERP business? Is that compressing or deflating your ERP revenues?
Angan (CEO)
our ERP business has been very challenged irrespective of the parent's announcement or AI related stories... we've been able to get a leader to lead our ERP business... we strongly believe our ERP business will only continue to improve from here.
Answered
High priority
Vertical where operational issue impacted revenue.
Asked by Sudi, Kotak Mahindra
Management clearly identified the vertical and sub-sector.
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Question
if you can throw some more color on which exact vertical you face this operational issue with the client... Is it BFSI or life sciences?
Angan (CEO)
it is life sciences and within life sciences it is a med tech sector medical devices sector... it is more manufacturing oriented... that's where we face the issue.
Partial answer
High priority
Reason for soft net new TCV booking and margin sustainability.
Asked by Sudi, Kotak Mahindra
Management attributed soft TCV to delays but did not quantify; margin answer lacked specifics on sustainable level.
no specific reason for soft TCV beyond delaysmargin target reiterated but no quantification of erosion
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Question
the net new TCV booking seem to be a bit on the softer side for this quarter... any further color? ... on margins... what is the most sustainable level of margin since we are way above the aspiration range of 15%?
Angan (CEO) and Chandu (CFO)
Q4 specifically our net new is obviously very soft... it is only because so many of our clients are delaying decision making... on margins... I continue to believe that our steady state margins that we should expect is going to be upward of 15%... there will be an erosion from where we are today.
Partial answer
High priority
Quantify impact of exiting low-margin business on FY26 growth.
Asked by Dish, MK Global Financial Services
Management gave a rough 200 bps impact but said exact numbers cannot be provided.
exact numbers not givenrange provided but not precise
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Question
can you give quantify impact of exit from low margin business on FY26 growth rate?
Angan (CEO) and Chandu (CFO)
we cannot give exact numbers... at least 200 basis points of growth roughly went away because we walked away from low margin non-strategic deals... the 200 basis points takes into consideration the lower working days in Q4 vs Q3.
Evasive
Medium priority
Deal intake needed for confidence in sustainable growth.
Asked by Dish, MK Global Financial Services
Management declined to provide a specific deal intake target.
no specific number givenrefused to quantify
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Question
what kind of deal intake required for you to get confidence about growth on sustainable basis returning?
Angan (CEO)
I can't give you exact figures on this... our endeavor will be to deliver strong order booking performance... it will definitely be substantially better than the order book we delivered in FY26.
Partial answer
Medium priority
What went wrong in previous restructuring and confidence in new one.
Asked by Sandeep, Equest Securities
Management acknowledged past failures but did not detail what went wrong; expressed confidence without concrete evidence.
no specific reasons for past failureconfidence based on new hires but no metrics
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Question
what has gone wrong in a previous restructuring cycle and why you are confident this time in terms of the again a second round of restructuring?
Angan (CEO)
the leaders that we had hired earlier have not delivered and we had to make changes at multiple levels... the reason why I'm confident... we have invested for growth... we've already hired a lot of leadership... we are at the bottom of the pit right now.
Answered
Medium priority
Top five customers flatlined; any client-specific issue?
Asked by Ravi Menon, Access Capital
Management directly denied client-specific issues and attributed to seasonality.
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Question
your top five customers have been growing... and now we've had a quarter where business flatlined... is there anything within the top five that's been a client specific issue this quarter?
Angan (CEO)
I don't think we have a client specific issue in our top five clients... it is a seasonal issue... the growth will be back on the top five.
Evasive
Medium priority
Cash on balance sheet and dividend payout policy.
Asked by Priyank, Walum Capital Advisors
Management did not address why cash is not returned more aggressively, deferred to board.
no commitment to change dividenddeferred to boardno timeline
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Question
we've been generating 500 crores of annual cash flow... still the dividend payout has been flat... what's our thoughts around this trend?
Chandu (CFO)
the dividend payout that the board has recommended is in line with what we did in FY25... based on the premise on performance... the cash in the balance sheet rightfully belongs to the shareholders... the board will take the right call.
Evasive
High priority
What stops management from committing to Q1 growth?
Asked by Pulkit Chawla, 361 Capital
Management refused to commit to Q1 growth, citing market volatility without specifics.
no commitmentblamed market uncertaintyno specific issues cited
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Question
What really stops you from committing to sort of saying that you know Q1 there should be growth coming up? Is there something that you're seeing or some client specific issues?
Angan (CEO)
the only reason I am holding back on committing anything is because the market is very uncertain and volatile... our game plan now is to focus on the input parameters.
Answered
High priority
Quantify one-offs in Q4 margins and sustainability.
Asked by Pulkit Chawla, 361 Capital
Management quantified the one-off benefit at 340 bps and explained the nature.
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Question
if I hear correctly, you did allude to the fact that Q4 margins also did have some one-offs. If you could just quantify them and what was the nature of those one-offs.
Chandu (CFO)
Forex tailwind gave us a 170 basis point benefit and the other items gave another 170 point benefit. So it's about a 340 point benefit that we got in the fourth quarter... the other part of it certainly will not repeat itself.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue declined 6.5% in FY26 | -6.5% | 2.4% | Understated vs filing |
| EBITDA margin 18.5% in Q4 | 18.5% | 18.5% | Matches filing |
| Steady-state EBITDA margin target 15% | 15% | 18.5% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.