Transcript of Earnings Call held on May 6, 2026
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Birlasoft reported Q4 FY26 revenue of INR 13,486 million (flat QoQ, +2.4% YoY), with dollar revenue declining 3.7% QoQ to $145.3 million due to soft demand environment and client-specific issues in Life Sciences/MedTech. Full-year FY26 revenue stood at $597.5 million, down 6% YoY. The company achieved strong margin expansion with Q4 EBITDA margins at 18.5% (up 30 bps QoQ) and full-year margins at 16.3% vs 13% in FY25 (+333 bps). Management walked away from low-margin, non-strategic deals impacting revenue by ~200 bps. The company hired multiple new leaders including COO, ERP head (SAP veteran), and is expanding sales team by 30-40% by mid-FY27 to drive growth. PAT for Q4 rose 46.7% QoQ to INR 1,759 million, with cash reserves at INR 2,637 crore (up 19% YoY). The CFO indicated steady-state EBITDA margins expected at 15%+ as investments for growth are made.
Birlasoft faces a challenging recovery path after 6 quarters of flat/declining revenue. While margin expansion is impressive, the company must now execute on sales investment to reignite growth. FY27 is expected to be better than FY26, but near-term revenue visibility remains limited given the sales ramp-up timeline.