Birlasoft Limited (IN:BSOFT)
:BSOFT
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Birlasoft Limited
(BSOFT)
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Rating:62Neutral
Price Target:
₹352.00
▼(-17.63% Downside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by solid financial stability from a very low-leverage balance sheet, offset by a sharp TTM revenue contraction and weakened cash generation (zero reported free cash flow). Technicals are subdued with the stock below key short-term moving averages, while valuation is reasonable but not compelling at a ~26 P/E with a modest ~1.6% yield.
Positive Factors
Very low leverage
Extremely low debt (D/E ~0.04) gives durable financial flexibility: supports counter-cyclical hiring, selective M&A, and investment in product/cloud capabilities without stressing interest coverage. That balance-sheet strength helps the firm navigate multi-quarter demand swings.
Negative Factors
Sharp recent revenue decline
A nearly 29% TTM revenue drop signals durable demand or contract-timing issues that can materially reduce scale economics. Reduced topline weakens utilization leverage, limits reinvestment, and raises risk that recent margins and growth drivers will not normalize quickly without new large wins.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Extremely low debt (D/E ~0.04) gives durable financial flexibility: supports counter-cyclical hiring, selective M&A, and investment in product/cloud capabilities without stressing interest coverage. That balance-sheet strength helps the firm navigate multi-quarter demand swings.
Read all positive factors
Birlasoft Limited (BSOFT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹102.41B
Dividend Yield1.42%
Average Volume (3M)56.28K
Price to Earnings (P/E)25.3
Beta (1Y)1.25
Revenue Growth-2.00%
EPS Growth-25.81%
CountryIN
Employees11,332
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)4.30
Shares Outstanding279,506,300
10 Day Avg. Volume39,054
30 Day Avg. Volume56,276
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)3.11
Price to Sales (P/S)2.01
P/FCF Ratio18.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹445.00Price Target Upside4.13% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)22.74
Revenue Forecast (FY)₹57.05B
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...
How the Company Makes Money
Birlasoft makes money primarily by delivering IT services to enterprise customers under commercial contracts. Its core revenue model is service-led, where clients pay for (a) ongoing managed services/application maintenance and support (recurring ...
Birlasoft Limited Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.78B | 53.75B | 52.78B | 47.95B | 41.30B | 35.56B |
| Gross Profit | 12.01B | 11.99B | 14.08B | 11.41B | 9.28B | 14.58B |
| EBITDA | 8.38B | 8.06B | 9.40B | 5.43B | 7.06B | 5.48B |
| Net Income | 4.65B | 5.17B | 6.24B | 3.32B | 4.64B | 3.21B |
Balance Sheet | ||||||
| Total Assets | 49.30B | 44.62B | 39.26B | 31.87B | 33.83B | 29.94B |
| Cash, Cash Equivalents and Short-Term Investments | 21.86B | 19.02B | 14.58B | 10.49B | 11.63B | 10.97B |
| Total Debt | 2.44B | 1.51B | 931.77M | 1.02B | 1.23B | 1.28B |
| Total Liabilities | 11.30B | 9.84B | 8.82B | 7.39B | 8.00B | 8.15B |
| Stockholders Equity | 38.00B | 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 | 5.56B | 6.22B | 7.18B | 5.61B | 2.81B | 5.58B |
| Investing Cash Flow | -2.54B | -4.84B | -6.27B | 2.52B | -3.07B | -4.44B |
| Financing Cash Flow | -2.16B | -2.03B | -1.55B | -6.36B | -1.47B | -968.69M |
Birlasoft Limited Technical Analysis
Neutral
427.35
Price Trends
386.89
Negative
401.95
Negative
392.81
Negative
Market Momentum
-5.21
Negative
52.63
Neutral
80.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BSOFT, the sentiment is Neutral. The current price of 427.35 is above the 20-day moving average (MA) of 360.04, above the 50-day MA of 386.89, and above the 200-day MA of 392.81, indicating a neutral trend. The MACD of -5.21 indicates Negative momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 80.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:BSOFT.
Birlasoft Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹69.07B | 23.90 | ― | 2.00% | 12.39% | 59.77% | |
70 Outperform | ₹49.18B | 14.66 | ― | 1.62% | 11.91% | -1.02% | |
69 Neutral | ₹140.97B | 28.61 | ― | 0.02% | 17.83% | 20.34% | |
68 Neutral | ₹57.76B | 42.91 | ― | 1.26% | 21.31% | -16.27% | |
62 Neutral | ₹102.41B | 25.31 | ― | 1.42% | -2.00% | -25.81% | |
62 Neutral | ₹126.68B | 19.99 | ― | 1.75% | 9.16% | 7.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Birlasoft Limited Corporate Events
Birlasoft Earns EcoVadis Silver Medal for Sustainability Performance
Feb 4, 2026
Birlasoft Limited has disclosed that sustainability ratings agency EcoVadis has awarded the company a Silver Medal with an overall score of 76 out of 100, with the rating valid until 2 February 2027. The recognition underscores Birlasoft’s p...
Birlasoft Seeks Government Nod to Re-Appoint CEO Angan Guha for Two-Year Term
Jan 6, 2026
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 Dire...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.