Birlasoft spurts after Q2 PAT jumps 37.5% YoY

Birlasoft surged 11.17% to Rs 340.45 after the IT services company reported a 37.5% year-on-year increase in consolidated profit after tax (PAT) to Rs 159.6 crore in Q2 FY27.

However, PAT declined 0.8% quarter on quarter from Rs 161 crore in Q1 FY27.

Revenue from operations rose 6.6% year on year to Rs 1,416.2 crore from Rs 1,328.9 crore. Revenue increased 2.7% sequentially from Rs 1,379.4 crore in Q1 FY27.

EBITDA increased 1% year on year to Rs 215.3 crore from Rs 213.3 crore. However, it declined 3.3% quarter on quarter from Rs 222.8 crore. EBITDA margin stood at 15.2%, down from 16% a year earlier and 16.1% in the previous quarter.

Profit before tax stood at Rs 225 crore in Q2 FY27, down 1.4% vs previous quarter and up 7.1% vs year-ago quarter.

Employee benefits expense was at Rs 861.6 crore, up 8.19% from Rs 796.4 crore in Q2 FY26. Other expenses increased 6.27% to Rs 339.3 crore from Rs 319.3 crore a year earlier. Finance costs rose 50.98% to Rs 7.7 crore from Rs 5.1 crore in Q2 FY26, while depreciation and amortisation increased 24.26% to Rs 25.1 crore from Rs 20.2 crore.

Birlasoft signed deals with a total contract value (TCV) of US$116 million during the quarter, comprising US$47 million in new deal wins and US$69 million in renewals. Deal wins TCV for H1 FY27 rose 15% year on year to US$285 million.

Revenue growth was led by Manufacturing, Banking, Financial Services and Insurance (BFSI), and Lifesciences and Services (LSS). In dollar terms, Manufacturing revenue grew 5.2% quarter on quarter, BFSI rose 3.6% and LSS increased 2.1%. Digital and Data revenue grew 3.4% sequentially, while Enterprise Resource Planning (ERP) revenue rose 2.9%. The Energy and Utilities (E&U) vertical declined sequentially.

Cash and cash equivalents stood at Rs 2,879.1 crore at the end of Q2 FY27, broadly unchanged sequentially and up from Rs 2,343.4 crore a year earlier. Days sales outstanding improved to 51 days from 55 days in Q1 FY27. The company had 11,142 employees as of 30 September 2026, while attrition declined to 11.1% from 11.7%.

Birlasoft was named an OpenAI Select Partner and earned the AWS AI Services competency. The company said its AI capabilities are supporting business development, including a new multi-year AI engagement with a global logistics company.

Chief executive officer and managing director Angan Guha said growth across key accounts, Manufacturing, BFSI and LSS, along with Digital and Data and ERP services, supported the quarter's performance. He added that first-half order bookings rose 15% year on year, while near-term performance would reflect macroeconomic conditions and seasonality.

Chief financial officer Chandrasekar Thyagarajan said revenue grew 2.7% quarter on quarter in rupee terms and 2.1% in dollar and constant-currency terms. He added that the 15.2% EBITDA margin reflected the impact of compensation increases and continued investments in sales and domain capabilities. Robust collections and operational efficiency remained key priorities.

Birlasoft is a global technology company providing digital transformation services across cloud, artificial intelligence, data and enterprise solutions. It helps businesses improve operational agility, resilience and customer experience through digital technologies and industry-specific expertise.

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