Birlasoft Limited (BSOFT) AI Stock Analysis

• Market Cap: ₹116.58B
• Dividend Yield: 1.42%
• Average Volume (3M): 56.28K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.47
• Revenue Growth: -2.00%
• EPS Growth: -25.81%
• Country: IN
• Employees: 11,332
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 4.30
• Shares Outstanding: 278,690,200
• 10 Day Avg. Volume: 39,054
• 30 Day Avg. Volume: 56,276
• PEG Ratio: -1.18
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 18.87
• 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: ₹430.00
• Price Target Upside: 0.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹436.00 ▲(2.02% Upside)

The score is primarily driven by mixed fundamentals: a very strong, low-leverage balance sheet and still-decent margins are offset by a sharp TTM revenue decline and weakened cash generation (zero reported free cash flow). Technical signals are mildly bearish (below short-term moving averages with negative MACD), while valuation is moderate (P/E ~24) with a modest dividend yield.

Positive Factors

Very low leverage

Extremely low debt-to-equity (~0.04) gives Birlasoft durable financial flexibility: it can absorb cyclical revenue shocks, maintain investment in sales/delivery, and pursue opportunistic M&A or contract-backed hiring without heavy interest burden, supporting long-term stability.

Healthy service margins

Sustained mid-to-high gross and double-digit operating margins indicate effective delivery leverage and pricing discipline in enterprise services. These margins underpin durable profitability, fund reinvestment, and support returns (ROE ~13% TTM), providing resilience if revenues fluctuate.

Service-led, diversified model

A mix of recurring managed services, time-and-materials projects, and platform implementations across industries creates diversified, repeatable revenue streams. This service-led model builds long-term client relationships and renewal potential, reducing single-cycle revenue volatility.

Negative Factors

Sharp TTM revenue decline

A nearly 29% TTM revenue drop is a meaningful structural headwind: it erodes scale economies, pressures utilization and pricing, and makes it harder to sustain fixed-cost-heavy delivery operations. Prolonged top-line weakness risks margin erosion and slower cash recovery.

Free cash flow deterioration

Zero reported TTM free cash flow marks a material weakening in cash conversion versus prior years. Persistently weak FCF limits reinvestment, dividend capacity, and balance-sheet optionality, increasing reliance on operational fixes or working-capital management to restore financial flexibility.

Recent margin/profitability softening

Lower TTM margins relative to FY2024 suggest pricing, mix, or utilization pressures are emerging. If sustained, this reduces return on capital and cash generation, forcing cost actions that may impair growth investments or client delivery capacity over the medium term.

Birlasoft Limited Business Overview & Revenue Model

Company Description

Birlasoft Limited provides enterprise digital IT services in the Americas, Europe, the United Kingdom, and internationally. It offers digital transformation services, including data analytics, connected products, intelligent automation, cloud, and blockchain services; and enterprise technologies and services in the areas of Oracle and JD Edwards, SAP, Infor, Microsoft, customer relationship management, manufacturing execution systems, product lifecycle management, supply chain management, IT transformation, applications management, testing, and infrastructure and cloud technology. The company also offers solutions, such as intelliOpen, an intelligent system for contactless screening of people, social distancing monitoring, and contact tracing; intelliAsset, a platform for asset visualization, analytics, and actions; TruView CLM, a cloud based contract lifecycle management solution; TruServ FSM, a cloud based touchless automation solution for field services; TruLens, a tool that provides insights into the existing Salesforce implementation; iLink, a solution for the integration of PLM applications and ERP systems; Supplier Risk Radar, an AI-powered preventive risk mitigation solution in the areas of supply chains; Akoya, an engineering analytics solution; Producer Workspace, an insurance brokerage solution; and Submission Automation, an insurance broker submission solution. It serves banking, high tech, manufacturing, insurance, media and entertainment, energy and resources, life sciences and healthcare, and utility industries, as well as capital markets. The company was incorporated in 1990 and is based in Pune, India.

How the Company Makes Money

Birlasoft makes money through a diversified revenue model primarily centered around providing IT services and solutions to businesses. Its key revenue streams include consulting and advisory services, custom software development, system integration, and managed services. The company often enters into long-term contracts with clients, ensuring a steady income flow. Additionally, Birlasoft generates revenue from licensing proprietary software and platforms developed in-house. Strategic partnerships with major technology providers enhance its service offerings and allow for co-innovation, which contributes to its earnings. The company also benefits from its expertise in digital transformation, as more organizations seek to modernize their operations and enhance customer experiences, leading to increased demand for Birlasoft's services.

Birlasoft Limited Financial Statement Overview

Summary

Financial stability is supported by a strong balance sheet (very low leverage, debt-to-equity ~0.04) and still-solid TTM margins (gross ~37.5%, operating ~13.6%, net ~8.7%). However, recent fundamentals have weakened: TTM revenue contracted sharply (-28.7%) and cash conversion deteriorated, with TTM free cash flow reported at zero.

Income Statement

TTM (Trailing-Twelve-Months) profitability remains solid for an IT services business (gross margin ~37.5%, operating margin ~13.6%, net margin ~8.7%). However, the latest TTM period shows a sharp revenue contraction (-28.7%) and lower profitability versus prior annual periods (FY2024 net margin ~11.8% with higher operating margin), signaling recent demand softness and/or pricing/mix pressure. Longer-term, the company delivered healthy growth through FY2024, but the near-term trajectory has clearly weakened.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (debt-to-equity ~0.04 in TTM (Trailing-Twelve-Months)), providing flexibility and resilience through a downturn. Equity has expanded over time and returns on equity are healthy (about 13% TTM (Trailing-Twelve-Months), stronger in recent annual periods), though the TTM return has moderated versus prior-year levels alongside softer earnings.

Cash Flow

Cash generation is decent but has become less consistent. TTM (Trailing-Twelve-Months) operating cash flow is positive (~5.6B) but covers a smaller portion of earnings than in stronger years, and TTM free cash flow is reported at zero, which is a meaningful deterioration versus FY2024–FY2025 when free cash flow was substantial and close to net income. The prior annual trend also shows volatility in free cash flow growth, which raises some quality-of-earnings and reinvestment/working-capital timing questions.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	53.75B	52.78B	47.95B	41.30B	35.56B
Gross Profit	19.50B	23.29B	19.82B	18.25B	14.88B
EBITDA	8.06B	9.40B	5.43B	7.06B	5.48B
Net Income	5.17B	6.24B	3.32B	4.64B	3.21B
Balance Sheet
Total Assets	44.62B	39.26B	31.87B	33.83B	29.94B
Cash, Cash Equivalents and Short-Term Investments	19.02B	14.58B	10.49B	11.63B	10.97B
Total Debt	1.51B	931.77M	1.02B	1.23B	1.28B
Total Liabilities	9.84B	8.82B	7.39B	8.00B	8.15B
Stockholders Equity	34.78B	30.44B	24.48B	25.83B	21.80B
Cash Flow
Free Cash Flow	5.73B	6.92B	5.03B	2.17B	5.33B
Operating Cash Flow	6.22B	7.18B	5.61B	2.81B	5.58B
Investing Cash Flow	-4.84B	-6.27B	2.52B	-3.07B	-4.44B
Financing Cash Flow	-2.03B	-1.55B	-6.36B	-1.47B	-968.69M

Birlasoft Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 427.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 427.35 is above the 20-day moving average (MA) of 417.38, above the 50-day MA of 419.67, and above the 200-day MA of 396.56, indicating a neutral trend. The MACD of -4.20 indicates Positive momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 52.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:BSOFT.

Birlasoft Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECLERX	74 Outperform	₹221.73B	32.63	―	0.02%	17.83%	20.34%
SONATSOFTW	69 Neutral	₹88.71B	19.86	―	2.00%	12.39%	59.77%
MASTEK	65 Neutral	₹63.64B	16.77	―	1.62%	11.91%	-1.02%
BSOFT	63 Neutral	₹116.58B	25.06	―	1.42%	-2.00%	-25.81%
HAPPSTMNDS	62 Neutral	₹62.95B	31.77	―	1.26%	21.31%	-16.27%
ZENSARTECH	62 Neutral	₹147.86B	19.94	―	1.75%	9.16%	7.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Birlasoft Limited Corporate Events

Birlasoft Seeks Government Nod to Re-Appoint CEO Angan Guha for Two-Year Term

Birlasoft Limited has published statutory notices in major Indian newspapers announcing its intention to seek Central Government approval for the re-appointment of Mr. Angan Guha, a Non-Resident Indian, as Chief Executive Officer and Managing Director for a further two-year term effective December 1, 2025. The move, made in compliance with Companies Act and SEBI listing regulations, signals continuity in top leadership and suggests a stable strategic direction for the IT services firm, with details of the proposed reappointment also made available on the company’s and stock exchanges’ websites for investor and stakeholder transparency.

Birlasoft Releases Q2 FY26 Earnings Call Transcript

Birlasoft Limited announced the release of the transcript from its Q2 FY26 earnings call, held on November 6, 2025. The transcript, which is available on the company’s website, provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.