Birlasoft Limited, part of the CKA Birla Group, reported its unaudited consolidated financial results for the second quarter ended September 30, 2026 (Q2 FY27).

Key Financial Performance (Q2 FY27)

Revenue:

  • ₹14,162 million, up 2.7% quarter-on-quarter (QoQ) and 6.6% year-on-year (YoY).
  • $148.3 million, up 2.1% QoQ.
  • Constant currency revenue growth of 2.1% QoQ.

Profitability:

  • EBITDA stood at ₹2,153 million ($22.5 million).
  • EBITDA Margin was 15.2%.
  • Profit After Tax (PAT) was ₹1,596 million ($16.7 million), up 37.5% YoY.
  • PAT Margin was 11.3%.
  • Basic Earnings Per Share (EPS), not annualized, was ₹5.67.
  • The effective tax rate for the quarter was 29.0%.

Cash & Liquidity:

  • Cash and cash equivalents stood at ₹28,791 million ($300.4 million), flat QoQ and up 23% YoY.
  • Days Sales Outstanding (DSO) improved to 51 days from 55 days in Q1FY27, described as the best in the past two years.

Dividend Declaration

  • The Board recommended an interim dividend of ₹3.00 per share.

Operational Highlights

Deal Wins:

  • Total Contract Value (TCV) of deals signed in Q2 was $116 million, comprising $47 million in new deals and $69 million in renewals.
  • Deal wins TCV for the first half (H1) of FY27 was $285 million, up 15.0% YoY.

Revenue by Vertical (QoQ growth in dollar terms):

  • Manufacturing: Up 5.2%
  • BFSI: Up 3.6%
  • Lifesciences & Services (LSS): Up 2.1%
  • Energy & Utilities (E&U): Registered a sequential decline.

Revenue by Service Line (QoQ growth):

  • Digital & Data: Up 3.4%
  • ERP: Up 2.9%

Client Concentration:

  • Revenue contribution from Top 5, Top 10, and Top 20 customers increased QoQ.

Workforce:

  • Total headcount stood at 11,142 as of September 30, 2026.
  • Attrition (LTM, adjusted for <6 months exits) reduced to 11.1% from 11.7% in Q1FY27.
  • Utilization was 82.5%.

Strategic Partnerships & Recognitions

  • Named an OpenAI Select Partner to help enterprises build, deploy, and scale AI solutions.
  • Earned the AWS AI Services competency for delivering Generative AI and Agentic AI solutions.
  • Secured a new multi-year AI engagement with a global logistics company based on the AWS competency.
  • Received multiple industry recognitions, including being named a 'Leader' in AI-Driven ADM Services and Generative AI Services by ISG, and a 'Major Contender' in Quality Engineering Services by Everest Group.

Key Deal Wins (Q2 FY27)

Major deals included engagements with:

1. A large North American medical devices manufacturer for AI, data, and digital transformation services.

2. A large global professional services consulting firm for IT Infrastructure and application separation/modernization in a M&A transaction.

3. A leading European logistics organisation for a strategic AI-led transformation and platform modernisation.

4. A leading medical products organisation for a multi-year Smart Factory transformation across international sites.

5. A leading US private-label credit card issuer for merchant onboarding modernization.

6. A leading US medical professional liability insurer as a development partner for Duck Creek Claims integrations.

Management Commentary

Mr. Angan Guha, CEO and MD: Noted healthy revenue growth driven by top accounts in Manufacturing, BFSI, and LSS verticals, and Digital & Data and ERP service lines. Stated that H1 FY27 order booking TCV is up 15% YoY, with AI and emerging tech as key growth drivers. Committed to continued investments in sales and domain capabilities for future growth.

Mr. Chandrasekar Thyagarajan, CFO: Attributed the 2.7% QoQ revenue growth in rupee terms (2.1% in dollar and constant currency) to growth in key verticals, partly offset by softness in E&U. Cited strong margin performance despite a organization-wide compensation increase and ongoing investments. Highlighted robust collections leading to strong cash flows and a two-year best DSO of 51 days.

Financial Statements Overview

Income Statement (Consolidated, ₹ million):

  • Employee benefits expense: ₹8,616 million
  • Other expenses: ₹3,393 million
  • Depreciation & amortization: ₹251 million
  • Other income (net): ₹425 million
  • Finance costs: ₹77 million
  • Profit Before Tax (PBT): ₹2,250 million

Balance Sheet (Consolidated, as of Sep 30, 2026, ₹ million):

  • Total Assets: ₹55,316 million
  • Property, plant and equipment: ₹1,478 million
  • Right-of-use assets: ₹1,482 million
  • Goodwill: ₹5,689 million
  • Investments: ₹2,044 million
  • Trade receivables (Billed): ₹8,331 million
  • Trade receivables (Unbilled): ₹2,107 million
  • Total Equity: ₹43,644 million
  • Other equity: ₹43,085 million
  • Share capital: ₹559 million

Cash Flow (Consolidated, Q2 FY27, ₹ million):

  • Cash generated from operations: ₹2,342 million
  • Income tax paid: ₹(894) million
  • Net cash from operating activities: ₹1,447 million
  • Net cash used in investing activities: ₹(708) million
  • Net cash used in financing activities: ₹(1,044) million
  • Net decrease in cash and cash equivalents: ₹(305) million

Forex and Hedge Details

  • Period end exchange rate: ₹95.80 per US$
  • Period average exchange rate: ₹95.52 per US$
  • Hedge book as of Sep 30, 2026: $15.0 million (avg. rate ₹92.1), GBP 1.3 million (avg. rate ₹126.7), Euro 1.8 million (avg. rate ₹109.1)

Investor Relations

A conference call to discuss the results was scheduled for October 28, 2026, at 6:30 PM IST.