Birlasoft Ltd. share price target

Birlasoft reported a 1% QoQ revenue decline in Q1 to USD 150.7mn, driven by macroeconomic headwinds, client insourcing, and ramp-downs in manufacturing, while BFSI, Life Sciences & Services, and Energy & Utilities saw growth. EBITDA margin stood at 12.4%, impacted by the absence of Q4 one-offs. TCV wins reached USD 141mn, slightly lower due to seasonality and a deal shifting to Q2. Manufacturing and ERP remain under pressure amid tariff uncertainties, though medical devices show positive traction. ERP, despite challenges, remains a USD 200mn business. The company is focusing on mining its top 40 accounts,...

Revenue down 5.3% QoQ CC, lower than our estimate on furloughs, project ramp downs, insourcing, etc. Had 3 QoQ drops in FY25

Birlasoft reported revenue at $152.2 million down 5.3% q-o-q/6.9% y-o-y in constant currency (CC) terms, missing our estimates of $160.1 million.

Amid a challenging macroeconomic environment and sustained pressure on discretionary spending, BSOFT reported muted performance; however, an encouraging uptick in deal TCV to USD 236mn (+4% QoQ) from Q3FY25, coupled with management guidance indicating sustained momentum, is expected to deliver growth from Q2FY26. Despite management's optimistic outlook of FY26 surpassing FY25, near-term headwinds lead to softness from furloughs and project ramp-downs in Q1, along with typical seasonality in H2 which are likely to temper the overall performance. While the company remains committed to...

3QFY25 performance impacted by higher-than-expected furloughs and decline in ERP Biz. Revenue declined by 1.1% QoQ in CC terms

Birlasoft reported revenue of $160.8 million, down 1.1% q-o-q/0.1% y-o-y, in constant currency (CC) terms, missing our estimate of $164.3 million. Revenue in rupee terms stood at Rs. 1362.7 crore, down 0.4% q-o-q/up 1.5% y-o-y.

Birlasoft is trying to pivot to address both annuity and transformation deals to remain on the growth path with decent margins

Big miss on revenue and margins. Significant shifts in cost items on a QoQ basis help prevent collapse in margins

TCV in Q4 (down 16% y/y) and H2 (down 11% y/y) was soft. In FY24, it was flattish (up 1%). However, the book:bill was 1.5x (LTM 1.4x),hence, the slow FY24 TCVgrowth may not impact revenue growth in FY25

? Reported revenue stood at $163.9 million, up 1.6% q-o-q/9.6% y-o-y in constant currency (cc) terms, slightly missing our estimates of $164.2 million driven by BFSI, E&U and manufacturing verticals.

Birlasoft’s revenue grew 3.1% QoQ (2.7% in cc terms) to US$ 153.6mn. Adjusted for receipt of US$ 2mn for disengagement services pertaining to settlement with Invacare, revenue grew 1.7% QoQ (1.4% in cc terms). OPM stood at 15.3%, aided by better gross margin, lower SG&A expenses, better utilization, automation and lower attrition.