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Revenue
₹1,285 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
latest reported figure
Source
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Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Birlasoft reported a challenging Q1 FY26 with revenue declining 1% QoQ to $150.7M, impacted by project rampdowns, insourcing, and macro uncertainty. EBITDA margin came in at 12.4%, down from Q4's elevated base due to one-offs. Manufacturing vertical saw a 4% QoQ decline, offsetting growth in BFSI, life sciences, and energy utilities. Deal wins totaled $141M, with one large deal slipping to Q2. Management expects sequential growth in Q2 but remains cautious on full-year visibility, focusing on order book recovery. Key risks include prolonged macro headwinds, pricing pressure, and elevated effective tax rate of ~36% for FY26. The company is investing in AI capabilities and cost optimization but faces headwinds from client insourcing and delayed decision-making.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects Q2 revenue to grow sequentially, driven by deal wins and pipeline conversion.
- Management aims to keep EBITDA margins in the 12.6%-13.1% range for the full year, similar to last year's 13%.
- ETR expected to be around 36% for FY26 due to a provision, but should return to historical 25-26% levels thereafter.
- Management targets order book of over $850M for FY26 to enable stronger growth in FY27.
Risks flagged
- Customers continue to cut discretionary spending and insource work, impacting revenue growth.
- Management acknowledged significant pricing pressure on new deals, which could compress margins.
- ETR spiked to 35.9% in Q1 due to a provision, expected to persist for the year, impacting net income.
- Manufacturing vertical, the largest, declined 4% QoQ and faces headwinds from tariffs and delayed decisions.
Key quotes
- Our biggest job right now is to get the order book fixed and if we can get the order book fixed then the revenues will follow.
- We have to go back to the basics on mining the 24 and 16 accounts that's important.
- Our entire focus this year because of the fact that we are starting from a huge headwind position is to really focus on quarter-on-quarter growth and delivering the order book rather than looking at year-on-year.
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