Birlasoft Limited conducted its Q2 FY27 earnings conference call on October 28, 2026, with management including CEO Angan Guha and CFO Chandrasekar Thyagarajan providing financial and operational updates.

Financial Performance

  • Consolidated revenue for Q2 FY27 stood at $148.3 million, representing 2.1% quarter-on-quarter growth in both constant currency and dollar terms
  • In rupee terms, revenue was INR 1,416.2 crore, a sequential growth of 2.7%
  • EBITDA for the quarter was INR 215.3 crore ($22.5 million), with EBITDA margin at 15.2%
  • PAT stood at INR 159.6 crore ($16.7 million) with an effective tax rate of 29%
  • The Board recommended an interim dividend of INR 3 per share

Vertical Performance

  • Manufacturing vertical grew 5.2% quarter-on-quarter
  • BFSI vertical grew 3.6% quarter-on-quarter
  • Life Sciences & Services vertical grew 2.1% quarter-on-quarter
  • E&U vertical remained soft due to ramp down of work for a customer in Europe

Service Line Performance

  • Digital & Data grew 3.4% quarter-on-quarter
  • ERP grew 2.9% quarter-on-quarter
  • Infra service line was affected by the drop in revenue in E&U vertical

Operational Metrics

  • Deal signings during the quarter came in at $116.1 million TCV, up 9% year-on-year
  • First half deal signings at $285 million, representing 15% year-on-year growth
  • Collections during the quarter were $164 million
  • DSO improved to 51 days, described as a "2-year best"
  • Cash and cash equivalents as of September 30, 2026 stood at $300.4 million
  • Utilization reached multi-quarter highs

AI Initiatives and Partnerships

  • Birlasoft earned AWS AI Services Competency status for delivering GenAI and Agentic AI solutions
  • Company became an OpenAI select partner
  • Around one-third of code is now generated using Agentic AI tools (up from 25% a few months ago)
  • Reimagined engineering workflows for 20+ top services offerings with AI-first approach
  • Key AI platforms: Cogito (enterprise Agentic AI platform), Lynx (AI-powered test engineering platform), Sigma (Agentic AI Ops and AMS platform)

Significant Deal Wins

  • Strategic AI-led transformation opportunity from a leading European logistics organization involving platform modernization, cloud adoption, and business transformation
  • 3-year AI-led managed services engagement for a global industrial manufacturer to support ERP systems and drive business innovation
  • Engagement with one of the largest medical devices manufacturers in North America for program governance, AI and data CoE, and core digital transformation

Management Outlook

  • Demand environment remains unchanged from previous quarter
  • H2 FY27 expected to reflect some furloughs in Q3
  • Company remains committed to investing in tech capabilities and sales organization
  • Management expects H2 financial performance to be better than H1
  • Focus on driving order book growth between October and March to secure future revenue
  • Margin expected to stay around 15% range despite ongoing investments

Operational Updates

  • Organizational-wide compensation increase rolled out effective July 2026 (impacted margins by ~170 bps)
  • Exit from non-profitable accounts completed
  • Continued focus on operational efficiencies and productivity improvements
  • Investments in physical and tech infrastructure leading to increased depreciation and amortization
  • Complementary workforce increased by approximately 50 resources for niche skills requirements

Leadership Updates

  • Sales hiring largely completed with new leaders onboard
  • Management expects 2-3 quarters for new sales leadership to become fully productive

Regional Performance

  • European client in E&U vertical caused softness in that segment
  • No expectation of immediate bounce back in E&U vertical
  • Offshore intensity increasing, particularly for advanced AI services