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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹1,347.5 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹244.8 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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, cost optimization, and one-off benefits. TCV surged 89% QoQ to $202 million, with 46% from new engagements, including AI-led deals in BFSI and manufacturing. However, revenue growth remains tepid due to furloughs and softness in manufacturing and life sciences. Management guided for sustainable EBITDA margins of ~15% (excluding one-offs) and expects Q4 deal signings to exceed Q3. Key risks include pricing pressure in renewals, continued headwinds in manufacturing/ERP, and lower working days in Q4.
Colored figures show movement against the previous available record.
Guidance to track
- Steady-state EBITDA margin expected to be around 15% excluding one-off benefits and forex tailwinds, factoring in investments and pricing pressure.
- Management expects total contract value in Q4 to be higher than the $202 million achieved in Q3.
- A wage hike will be implemented between Q1 and Q2 of next financial year, with promotions already underway.
Risks flagged
- Renewals are expected at lower margins due to pricing pressure, which could compress overall margins.
- The one-off growth in manufacturing/ERP in Q3 will not repeat, and these segments are expected to remain soft in Q4.
- Three fewer working days in Q4 could impact revenue, though partially mitigated by fixed-price contracts.
- Pricing pressure in healthcare due to tariff uncertainties may persist into Q4 and Q1 FY27.
Key quotes
- Our problem or rather the focus of the management team has to be on revenue growth. But before that we have to get the signings done.
- We are moving away from staff augmentation to more outcome-based work.
- All the bad news is behind us. I don't think we will lose any existing business. But they will get renewed at a lower margin because we see pricing pressures.
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