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Birlasoft for Q1FY27 reported revenue of Rs 1,379.4 crore

ICICIdirect Research 29 Jul 2026 DISCLAIMER

News: Birlasoft for Q1FY27 reported revenue of US$145.2 mn (₹1,379.4 crore), up 0.3% QoQ/down 3% YoY in CC terms. Vertical wise on a QoQ basis in US$ terms, growth was led by BFSI (25.3% of the mix) and Lifesciences & Services (19.6% of the mix), which grew 5% and 2%, respectively, while Manufacturing (37.6% of the mix) and Energy & Utilities (17.5% of the mix) declined 3.7% and 1.2%. Geography wise on a QoQ basis in US$ terms, RoW (17.1% of the mix) grew 6.8% while Americas (82.9% of the mix) declined 1.4%. Reported EBITDA margin stood at 16.1%, down 233 bps QoQ/up 379 bps YoY; the sequential decline was largely due to the absence of ~170 bps of one-off benefits recorded in Q4FY26, along with continued investments in sales and demand capabilities, partly offset by operational efficiencies. Reported PAT stood at ₹161 crore, down 8.5% QoQ/up 51.3% YoY. TCV for the quarter stood at US$169 mn, down 18.8% QoQ/up 19.9% YoY, with new TCV wins of US$57 mn, accounting for ~34% of TCV. Headcount declined by 306 QoQ to 11,057, while LTM attrition declined ~130 bps QoQ to 11.7%. 

View: Birlasoft deliverd mixed performance this quarter, with the return to marginal sequential CC growth and 20% YoY improvement in TCV providing some comfort, particularly as management expects growth momentum to sustain and H1FY27 deal signings to be better YoY. AI-led wins across BFSI and Lifesciences are encouraging; however, the revenue trajectory remains weak with revenues still down 3% YoY in CC terms, while Manufacturing is expected to remain soft and E&U is likely to see weakness for another quarter. Margin at 16.1% is healthy and above management’s sustainable 15%+ level, but Q2FY27 faces a sizeable wage-hike headwind of 170–200 bps on a full-quarter basis, of which management expects roughly half to flow through to Q2 margins after productivity offsets. Overall, while deal momentum and management commentary point towards a gradual growth recovery, we would look for stronger revenue conversion and sustained sequential growth before turning more constructive. 

Impact: Negative

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