Birlasoft’s Profit in June Quarter Down by 29.2%

Mumbai, 7 August 2025: Birlasoft Limited (NSE: BSOFT, BSE: 532400) reported a sharp 29.2% year-on-year (YoY) fall in its consolidated net profit to ₹1,064.34 crore for the quarter ended 30 June 2025 (Q1FY26), down from ₹1,502.07 crore in Q1FY25. The decline was driven by slower revenue growth, reduced profits across major industry segments, and a higher tax outgo. On a quarter-on-quarter (QoQ) basis, profit was also down 12.8%.

Revenue from Operations Slips 3.2% YoY and 2.4% QoQ Due to Weak Client Demand

Birlasoft’s consolidated revenue from operations fell to ₹12,848.98 crore in Q1FY26, compared to ₹13,274.31 crore in Q1FY25, marking a 3.2% YoY decline. Quarter-on-quarter, it slipped 2.4% from ₹13,168.88 crore in Q4FY25. The slowdown was attributed to macroeconomic headwinds and muted client demand across multiple industries. Total income also declined 3.2% YoY to ₹13,179.99 crore, while profit before tax dropped 18.9% YoY to ₹1,661.73 crore.

Earnings Per Share (EPS) Contracts 29.6% YoY as Net Profit Shrinks Sharply

The company’s basic EPS stood at ₹3.81 in Q1FY26, compared to ₹5.41 in the same quarter last year and ₹4.38 in the previous quarter. This represents a 29.6% YoY drop and a 13% decline QoQ, in line with the contraction in profitability. The fall in EPS reflects the impact of revenue decline and lower segment performance across major business verticals.

Life Sciences Revenue Falls 9.6% YoY While Manufacturing Contracts 5.7%; Energy Grows 7%

A closer look at the verticals reveals the following YoY movements in Q1FY26:

• Life Sciences & Services revenue stood at ₹2,573.39 crore, a sharp 9.6% drop from ₹2,845.56 crore in Q1FY25.
• Manufacturing revenue declined by 5.7% to ₹4,900.94 crore.
• Banking, Financial Services and Insurance (BFSI) remained flat at ₹3,129.35 crore, down marginally by 0.2%.
• Energy & Utilities was the only growing vertical, posting a 7% rise to ₹2,245.30 crore.

The performance across segments points to a shift in client spending patterns, especially in regulated sectors, with energy gaining traction amid a broader slowdown.

Standalone Net Profit Drops 66.1% YoY to ₹367 Cr Amid Absence of Previous Year’s Reversal Benefit

On a standalone basis, revenue fell 13.1% YoY to ₹6,265.51 crore, compared to ₹7,213.78 crore in Q1FY25. Standalone net profit plummeted 66.1% YoY to ₹367.01 crore, down from ₹1,083.72 crore in the same period last year. The steep fall was partly due to the absence of a one-time ₹222 crore gain from the reversal of Long-Term Special Award provision that had benefited Q1FY25. Total comprehensive income also declined 65.3% YoY to ₹389.65 crore.

CFO Transition Announced as Chandrasekar Thyagarajan Takes Charge from 8 August 2025

The company’s board has accepted the resignation of Ms. Kamini Shah from the position of Chief Financial Officer (CFO), effective close of business on 7 August 2025. She will be succeeded by Mr. Chandrasekar Thyagarajan, who will assume the role of CFO and Key Managerial Personnel (KMP) from 8 August 2025. This leadership change comes amid pressure on margins and growth, and signals a strategic realignment of financial leadership at the company.

Stock Dips 0.89% to ₹382.55 by Close of Trade After Weak Earnings Announcement

Birlasoft’s stock (NSE: BSOFT) ended the day at ₹382.55, down ₹3.45 or 0.89%, as markets reacted to the disappointing earnings release. The stock opened at ₹383.00 and touched a low of ₹376.00 before closing near its opening levels. Investor sentiment was affected by the sharp decline in net profit, subdued revenue performance, and resignation of the CFO. The trading volume remained moderate, reflecting cautious investor positioning post results.

Key Performance Metrics Reflect Broad-Based Weakness with Net Profit Growth Down 29.1% YoY

In terms of key metrics for Q1FY26:

• Market capitalisation stood at ₹10,618.3 crore.
• Revenue growth YoY was negative at -3.2%.
• Net profit growth YoY fell by 29.1%, and TTM net profit growth was -25.7%.
• Operating profit margin for the quarter was 12.4%, below the industry median.
• Return on Equity (ROE) and Return on Assets (RoA) stood at 14.8% and 11.6% respectively, both trailing industry benchmarks.
• The Piotroski Score, which evaluates financial strength, came in at a modest 4, suggesting weak fundamentals.
• Institutional holding dropped by 1.41%, now at 34.8%, indicating cautious outlook from large investors.

About Birlasoft (BSOFT): Mid-Tier Digital Services Firm Backed by CK Birla Group, Based in India

Birlasoft Limited, part of the CK Birla Group, is a publicly listed Indian IT services company, primarily focused on digital transformation and core enterprise solutions. The company is headquartered in India and operates in the mid-tier IT segment, serving clients across verticals like BFSI, Manufacturing, Life Sciences, and Energy. It trades under the symbol BSOFT on both NSE and BSE, with a face value of ₹2 per share.

REF:https://nsearchives.nseindia.com/corporate/Birlasoft_07082025151150_Outcome.pdf

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