India · Delayed Price · Currency is INR Birlasoft Earnings Call Transcripts
Fiscal Year 2026
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Q3 FY2026 delivered stable revenue and strong margin expansion, with EBITDA margin up 212 bps QoQ to 18.2% and TCV surging 89% QoQ to $202M. Manufacturing and ERP face near-term headwinds, but order bookings and cash flow remain robust.
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Q2 FY 2026 saw stable revenue and a strong EBITDA margin boost, aided by operational efficiencies, one-offs, and forex gains. Sequential growth is expected in H2, with BFSI and life sciences offsetting manufacturing weakness, and a robust deal pipeline for the remainder of the year.
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Revenue declined 1% QoQ to $150.7M as Manufacturing softness offset growth in other verticals. EBITDA margin was 12.4%, with a one-time tax rate spike to 35.9%. Management targets sequential growth in Q2, but full-year outlook remains cautious amid macro headwinds.
Fiscal Year 2025
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FY25 saw flat revenue and margin improvement despite macro headwinds and project closures. Q4 deal wins were strong, with new logos and annuity contracts supporting a positive outlook for growth from Q2 FY26. Margins are expected to remain stable, with investments focused on organic growth.
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Q3 saw flat revenue growth and stable margins despite higher furloughs and weak demand in key verticals. Strong order bookings and cash generation provide resilience, but near-term headwinds from furloughs and project rundowns are expected to impact Q4. Management remains focused on margin improvement and growth in FY26.
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Sequential revenue growth returned in Q2 FY25, led by broad-based vertical and service line contributions, though margins declined due to upfront investments and pricing pressure in consolidation deals. Management expects margin recovery from Q4, with a strong deal pipeline and continued focus on cash flow and capability investments.