Birlasoft Limited (BSOFT) AI Stock Analysis

• Market Cap: ₹99.13B
• Dividend Yield: 1.81%
• Average Volume (3M): 57.34K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.52
• Revenue Growth: -0.19%
• EPS Growth: -25.97%
• Country: IN
• Employees: 11,332
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.80
• Shares Outstanding: 278,542,940
• 10 Day Avg. Volume: 50,936
• 30 Day Avg. Volume: 57,343
• 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: ₹367.33
• Price Target Upside: 3.21% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: ₹402.00 ▲(12.95% Upside)

Birlasoft Limited's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and profitability. However, technical indicators suggest a bearish trend, which impacts the score negatively. The valuation is moderate, offering a reasonable entry point for investors.

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 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	53.33B	53.75B	52.78B	47.95B	41.30B	35.56B
Gross Profit	19.67B	19.50B	23.29B	19.82B	18.25B	14.88B
EBITDA	7.68B	8.06B	9.40B	5.43B	7.06B	5.48B
Net Income	4.73B	5.17B	6.24B	3.32B	4.64B	3.21B
Balance Sheet
Total Assets	46.44B	44.62B	39.26B	31.87B	33.83B	29.94B
Cash, Cash Equivalents and Short-Term Investments	19.91B	19.02B	14.58B	10.49B	11.63B	10.97B
Total Debt	1.59B	1.51B	931.77M	1.02B	1.23B	1.28B
Total Liabilities	10.22B	9.84B	8.82B	7.39B	8.00B	8.15B
Stockholders Equity	36.22B	34.78B	30.44B	24.48B	25.83B	21.80B
Cash Flow
Free Cash Flow	0.00	5.73B	6.92B	5.03B	2.17B	5.33B
Operating Cash Flow	5.36B	6.22B	7.18B	5.61B	2.81B	5.58B
Investing Cash Flow	-3.24B	-4.84B	-6.27B	2.52B	-3.07B	-4.44B
Financing Cash Flow	-2.08B	-2.03B	-1.55B	-6.36B	-1.47B	-968.69M

Birlasoft Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 355.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 355.9 is below the 20-day moving average (MA) of 366.27, below the 50-day MA of 374.82, and below the 200-day MA of 426.62, indicating a bearish trend. The MACD of -6.62 indicates Positive momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 49.34 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
ZENSARTECH	73 Outperform	₹175.06B	25.95	―	1.65%	8.36%	0.83%
SONATSOFTW	71 Outperform	₹98.77B	22.83	―	0.34%	16.11%	45.45%
MASTEK	70 Outperform	₹67.76B	17.04	―	1.66%	13.04%	30.69%
ECLERX	66 Neutral	₹191.00B	33.03	―	0.02%	16.39%	13.26%
BSOFT	66 Neutral	₹99.13B	20.85	―	1.81%	-0.19%	-25.97%
HAPPSTMNDS	66 Neutral	₹74.68B	38.55	―	1.22%	26.47%	-21.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%