Financial Performance

Birlasoft Limited reported consolidated revenue of ₹53,100 million for FY 2025-26, representing a slight decrease of 1.2% YoY from ₹53,752 million. However, the company demonstrated significant margin improvement with EBITDA increasing 24.2% YoY to ₹8,660 million, resulting in a 333 basis points expansion to 16.3%. Profit After Tax (PAT) remained stable at ₹5,184 million (₹5,168 million in FY25), though adjusted PAT excluding one-time impacts of Labour Code changes and higher US federal tax grew 27.6% YoY to ₹6,595 million. The effective tax rate increased to 34.4% due to provisions for higher US federal tax.

Standalone performance showed stronger growth with revenue increasing 6.2% to ₹28,220 million and net profit growing 1% to ₹3,016 million. The company maintained robust liquidity with cash and cash equivalents (including investments) increasing 19% YoY to ₹26,373 million, while net worth expanded to ₹41,131 million from ₹34,782 million.

Corporate Actions & Dividend

The Board recommended a final dividend of ₹4.00 per share (200% of face value) for FY 2025-26, subject to approval by members at the ensuing Annual General Meeting. This follows an interim dividend of ₹2.50 per share paid during the year. The Record Date for the final dividend, if approved, is Friday, July 10, 2026.

Business Performance & Strategy

Birlasoft secured $658 million in Total Contract Value deals for the year, with strong second-half momentum ($410 million in H2) including Q3 and Q4 TCV of $202 million and $208 million respectively. The company is pivoting to an "AI First" operating model, investing in platforms like Cogito (Agentic AI development) and Lynx (AI-powered test automation). Revenue by geography was dominated by Americas (86%) with Europe and Other Geographies contributing 14%. Vertically, Manufacturing led at 37.9%, followed by BFSI (24.4%), Lifesciences & Services (20.4%), and Energy & Utilities (17.3%).

Leadership & Governance

Key management changes included Kamini Shah resigning as CFO effective August 7, 2025, with Chandrasekar Thyagarajan appointed as CFO effective August 8, 2025. Sneha Padve continued as Company Secretary & Compliance Officer. Angan Guha was re-appointed as CEO & Managing Director for a further period of two years effective December 1, 2025. The Board composition remained stable with Amita Birla as Chairman and CK Birla retiring by rotation and seeking re-appointment.

ESG & Sustainability Performance

Birlasoft advanced its Net Zero commitment to 2040 (from 2050) and submitted emission reduction targets to the Science Based Targets initiative (SBTi) for validation. The company received multiple ESG recognitions including 'Leader' category by NSE Sustainability Ratings, 'Low ESG Risk' by Morningstar Sustainalytics, 97th percentile by S&P Global, and ESG score of 64 by CRISIL. Environmental metrics showed improvement with 10.3% renewable energy usage, reduced GHG emissions intensity of 0.3155 MT/FTE, and all owned facilities maintaining zero liquid discharge status.

Regulatory Compliance & Labour Code Impact

The company submitted its Business Responsibility and Sustainability Report to stock exchanges pursuant to SEBI Regulation 34(2)(f). Notably, the implementation of new Labour Codes resulted in an exceptional item of ₹406.88 million (Gratuity: ₹327.19 million, Leave encashment: ₹79.69 million) due to increased employee benefit liabilities. The company maintained strong anti-corruption measures with zero disciplinary actions for bribery/corruption.

Employee & Operational Metrics

Headcount stood at 11,363 employees as of March 31, 2026, with attrition rate of 13% (12.8% in FY25). The company achieved 100% coverage on employee benefits, 95% skill upgradation training coverage, and was certified as a Great Place to Work® for the fifth consecutive year. CSR expenditure was ₹70.10 million against requirement of ₹69.91 million, focused on education for visually impaired, women's empowerment, and community enablement.

Auditor Assurance

Auditors S R B C & Co LLP issued unqualified opinions on both standalone and consolidated financial statements, confirming adequate internal financial controls despite partial audit trail implementation in SAP HANA. Key audit matters included revenue recognition and impairment assessment of goodwill (carrying value: ₹5,648.13 million).