Birlasoft Limited (BSOFT) AI Stock Analysis

• Market Cap: ₹102.23B
• Dividend Yield: 1.42%
• Average Volume (3M): 56.28K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 1.50
• 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: 279,506,300
• 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: ₹445.00
• Price Target Upside: 4.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹423.00 ▼(-1.02% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 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 balance sheet

A debt-to-equity near 0.04 provides durable financial flexibility and resilience through downturns. Low leverage reduces interest burden, preserves capacity for opportunistic investment or hiring, and supports multi-quarter stability in service delivery and bidding for large transformation contracts.

Solid operating margins and ROE

Healthy gross and operating margins alongside ~13% TTM ROE indicate the core services business converts revenue into sustainable profits. These structural margins support reinvestment in talent and digital capabilities, cushioning the company through cyclical demand changes and aiding long-term competitiveness.

Service-led, recurring enterprise revenue model

A mix of recurring managed services, multi-year engagements and project/implementation work creates revenue visibility and cross-sell opportunities. This structural business model supports steady backlog conversion, client stickiness, and long-term relationships across industries, reducing single-period volatility.

Negative Factors

Sharp TTM revenue contraction

A nearly 29% TTM revenue decline signals material demand softness or lost contracts and undermines the firm’s growth runway. Sustained revenue weakness reduces operational leverage, harms hiring and investment plans, and makes multi-quarter recovery imperative to preserve margins and market position.

Deteriorated cash generation; zero TTM free cash flow

Zero reported TTM free cash flow constrains reinvestment, dividends, and M&A without adding leverage. Weaker cash conversion increases reliance on working-capital timing and raises quality-of-earnings concerns, limiting management’s flexibility to fund strategic initiatives over the medium term.

Profitability moderated versus prior periods

Compression of net and operating margins versus prior annual periods reduces retained earnings and ROE. If driven by pricing, mix, or cost pressure, persistent margin erosion will impair ability to invest in talent and tech, weakening competitive position in long-cycle enterprise deals.

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

Financials are mixed: the balance sheet is a key strength with very low leverage (debt-to-equity ~0.04) and healthy ROE (~13% TTM), but the latest TTM shows a sharp revenue decline (-28.7%) and weaker profitability versus FY2024. Cash conversion has deteriorated with zero reported TTM free cash flow, reducing quality-of-earnings confidence.

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	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	19.96B	19.50B	23.29B	19.82B	18.25B	14.88B
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

• Technical Analysis Sentiment: Negative
• Last Price: 427.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 427.35 is above the 20-day moving average (MA) of 415.36, above the 50-day MA of 422.49, and above the 200-day MA of 399.29, indicating a bearish trend. The MACD of -13.26 indicates Positive momentum. The RSI at 35.11 is Neutral, neither overbought nor oversold. The STOCH value of 3.89 is Positive, 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
ECLERX	74 Outperform	₹157.32B	23.46	―	0.02%	17.83%	20.34%
SONATSOFTW	69 Neutral	₹75.66B	16.96	―	2.00%	12.39%	59.77%
MASTEK	65 Neutral	₹48.42B	12.79	―	1.62%	11.91%	-1.02%
BSOFT	62 Neutral	₹102.23B	21.91	―	1.42%	-2.00%	-25.81%
HAPPSTMNDS	62 Neutral	₹55.28B	29.39	―	1.26%	21.31%	-16.27%
ZENSARTECH	62 Neutral	₹122.27B	16.49	―	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 Earns EcoVadis Silver Medal for Sustainability Performance

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 progress on environmental, social and governance practices, and its public disclosure of the scorecard signals a growing emphasis on sustainability performance and transparency, which may enhance its standing with regulators, investors, and other stakeholders in the Indian capital markets.

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.