Birlasoft Limited (BSOFT) AI Stock Analysis

• Market Cap: ₹102.79B
• Dividend Yield: 1.76%
• Average Volume (3M): 74.73K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.48
• Revenue Growth: -0.19%
• EPS Growth: -25.97%
• Country: IN
• Employees: 11,332
• Sector: Technology
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): 3.80
• Shares Outstanding: 278,002,870
• 10 Day Avg. Volume: 49,529
• 30 Day Avg. Volume: 74,730
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹375.00
• Price Target Upside: 1.42% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ₹421.00 ▲(13.86% Upside)

The most significant factor contributing to Birlasoft's score is its strong financial performance, characterized by solid revenue growth and effective cost management. Technical analysis indicates mixed signals with a potential downward trend, which slightly dampens the overall score. Valuation metrics suggest the stock is fairly valued, with a modest dividend yield providing additional context. Absence of recent earnings call insights and notable corporate events means these factors did not influence the score.

Birlasoft Limited Business Overview & Revenue Model

Company Description

Birlasoft Limited (BSOFT) is a global IT services company headquartered in India, specializing in digital transformation and enterprise technology solutions. It operates across various sectors, including manufacturing, banking and financial services, insurance, media, healthcare, and energy. The company offers a broad range of services such as application development and maintenance, cloud and infrastructure services, analytics, and enterprise resource planning (ERP) solutions.

How the Company Makes Money

Birlasoft makes money primarily through its IT services and solutions offerings. The company's revenue model is based on providing a mix of fixed-price contracts, time-and-material contracts, and outcome-based pricing models. Key revenue streams include consulting services, implementation and integration of technology solutions, and ongoing support and maintenance services. Birlasoft also generates revenue through strategic partnerships with leading technology providers, which enable it to offer comprehensive solutions that leverage both proprietary and third-party technologies. Additionally, Birlasoft's focus on digital transformation services helps attract clients looking to modernize their IT infrastructure, thus contributing significantly to its earnings.

Birlasoft Limited Financial Statement Overview

Summary

Birlasoft Limited exhibits strong financial health with sustained revenue growth and profitability, effective cost management, and a robust balance sheet. While cash flow remains solid, attention to improving free cash flow growth can enhance financial flexibility. The company's low leverage and efficient asset management position it well for future growth.

Income Statement

Birlasoft Limited demonstrates solid revenue growth with a consistent upward trajectory over the past five years. The company maintains healthy gross and net profit margins, although recent decreases in gross profit margins are notable. EBIT and EBITDA margins remain robust, indicating strong operational efficiency. Continued focus on managing costs will be essential to sustain these levels.

Balance Sheet

The balance sheet reveals a strong equity position with a low debt-to-equity ratio, suggesting financial stability and low leverage risk. The equity ratio is high, underscoring a solid asset base funded largely by equity. Return on equity is satisfactory, reflecting efficient use of shareholder funds to generate profits.

Cash Flow

The cash flow statement shows positive free cash flow and an increasing trend in operating cash flow, indicative of effective cash management. However, the decline in free cash flow growth suggests potential areas for improvement in capital expenditure management. The operating cash flow to net income ratio supports the company's ability to convert profits into cash.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.21B	53.75B	52.78B	47.95B	41.30B	35.56B
Gross Profit	16.85B	19.50B	23.29B	19.82B	18.25B	14.88B
EBITDA	8.34B	8.06B	9.40B	5.43B	7.06B	5.48B
Net Income	5.75B	5.17B	6.24B	3.32B	4.64B	3.21B
Balance Sheet
Total Assets	0.00	44.62B	39.26B	31.87B	33.83B	29.94B
Cash, Cash Equivalents and Short-Term Investments	15.60B	19.02B	14.58B	10.49B	11.63B	10.97B
Total Debt	0.00	1.51B	931.77M	1.02B	1.23B	1.28B
Total Liabilities	-32.50B	9.84B	8.82B	7.39B	8.00B	8.15B
Stockholders Equity	32.50B	34.78B	30.44B	24.48B	25.83B	21.80B
Cash Flow
Free Cash Flow	2.06B	5.73B	6.92B	5.03B	2.17B	5.33B
Operating Cash Flow	2.83B	6.22B	7.18B	5.61B	2.81B	5.58B
Investing Cash Flow	-3.99B	-4.84B	-6.27B	2.52B	-3.07B	-4.44B
Financing Cash Flow	-1.23B	-2.03B	-1.55B	-6.36B	-1.47B	-968.69M

Birlasoft Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 369.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BSOFT, the sentiment is Negative. The current price of 369.75 is below the 20-day moving average (MA) of 383.48, below the 50-day MA of 405.77, and below the 200-day MA of 458.18, indicating a bearish trend. The MACD of -8.97 indicates Negative momentum. The RSI at 38.25 is Neutral, neither overbought nor oversold. The STOCH value of 34.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BSOFT.

Birlasoft Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MASTEK	76 Outperform	₹78.19B	20.27		0.73%	13.04%	30.69%
ECLERX	74 Outperform	₹212.11B	34.98		0.02%	16.39%	13.26%
ZENSARTECH	73 Outperform	₹182.71B	27.16		1.61%	8.36%	0.83%
HAPPSTMNDS	66 Neutral	₹88.59B	46.77		1.03%	26.47%	-21.31%
SONATSOFTW	65 Neutral	₹102.27B	24.73		1.55%	16.11%	45.45%
BSOFT	65 Neutral	₹102.79B	22.26		1.76%	-0.19%	-25.97%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%