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Informist, Sunday, Jul. 26, 2026

 

By Shruti Nair

 

MUMBAI – Birlasoft Ltd. is expected to report only marginal sequential rise in its June quarter top line on sustained pressure in select segments, according to brokerages tracking the company. Further, the technology company's revenues in US dollar terms are seen down sequentially. The company's bottom line for the June quarter is expected to fall sharply on a sequential basis from a high base in the March quarter.

 

The C.K. Birla Group company is expected to report a sequential fall of over 10% in its consolidated net profit for the June quarter to INR 1.58 billion, according to the average of estimates from nine brokerages. For the March quarter, the company had reported a consolidated net profit of INR 1.76 billion on the back of better operating efficiencies and exchange rate tailwinds. On year, the company's bottom line is expected to surge over 48%. The highest estimate for the bottom line is INR 1.77 billion from Nomura Equity Research. The lowest estimate is INR 1.21 billion from Anand Rathi Share and Stock Brokers Ltd.

 

Birlasoft's consolidated revenues for the June quarter are expected to be INR 13.59 billion, up around 1% on quarter, according to the average of estimates. Two brokerages expect the revenue to fall sequentially. On year, the revenue is seen growing close to 6%. The highest estimate for the top line is INR 13.71 billion from Equirus Securities Pvt. Ltd. and the lowest is INR 13.18 billion from Nuvama Wealth Management Ltd. IDBI Capital Market Services Ltd. foresees an on-quarter dip in the top line on account of continued pressure in the company's manufacturing and automobile segments.

 

CONSTANT CURRENCY GROWTH

In dollar terms, Birlasoft's revenues for the June quarter are seen at $144.86 million, according to the average of seven estimates, down marginally from the March quarter. In constant currency terms, the company's revenues are seen down 0.1–0.7% on quarter. Emkay Global Financial Services Ltd. attributes the sequential dip to cross-currency headwinds. Equirius Securities sees a 0.3% dip due to expected softness in discretionary and project-based spending, and internal restructuring. The fall is likely to be partly offset by a ramp-up in deals secured in previous quarters, the brokerage said.

 

Notably, Nirmal Bang Equities Pvt. Ltd. has deviated from its peers and estimated a 1.1% growth in constant currency for Birlasoft on a sequential basis. The brokerage attributes the increase to more working days in the June quarter than in the trailing quarter.

 

EBITDA, EBIT MARGINS

The software company's consolidated earnings before interest, taxes, depreciation, and amortisation are seen around INR 1.97 billion-INR 2.33 billion for the June quarter, with Equirius Securities having the highest estimate and Anand Rathi the lowest. The EBITDA is seen down from INR 2.49 billion in the trailing quarter but up from INR 1.59 billion in the year-ago quarter.

 

Birlasoft's EBIT margin for the June quarter is seen at 13-15.8%, according to estimates from seven brokerages, down from 17% in the March quarter. Equirius Securities sees a dip of 145 basis points on quarter, largely because of the absence of certain one-time benefits in the March quarter and the impact of partial wage hikes, investments, and competitive pricing. Nirmal Bang foresees the margin being down 200 bps on quarter at 15% due to the company prioritising revenue growth and continuing investments over protecting margins, which it had been doing for the past two years. IDBI Capital also sees a dip in the company's EBIT margin due to significant lateral hiring in the June quarter.

 

Birlasoft is a global technology company that specialises in cloud, artificial intelligence, data, and enterprise solutions with a workforce of around 12,000. The company will detail its earnings Tuesday. Investors will watch out for management commentary on order wins, demand trends across top clients, hiring plans, and attrition trends.

 

Friday, shares of the company closed at INR 282.40 apiece on the National Stock Exchange, up 1.2% from Thursday. The stock has shed over 22% since the company declared its March quarter earnings on May 6.

 

Of the eight brokerage reports on the company available with Informist, four have a "buy" or equivalent recommendation on the stock with an average target price of INR 424 per share, over 50% higher than the current market price. Three brokerages have a "hold" or equivalent recommendation, while the eighth says "sell".

 

The following are the Apr-Jun earnings estimates for Birlasoft from nine brokerages, in descending order of the estimate of net profit, in INR billion:

 

Brokerage	Net Sales	Net Profit	EBITDA
Nomura Equity Research	13.65	1.77
Emkay Global Financial Services Ltd.	13.69	1.71	2.19
Equirus Securities Pvt. Ltd.	13.71	1.66	2.33
IDBI Capital Market Services Ltd.	13.64	1.62
Nirmal Bang Equities Pvt. Ltd.	13.50	1.62
360 ONE Capital Market Pvt. Ltd.	13.65	1.60
HDFC Securities Ltd.	13.66	1.52
Nuvama Wealth Management Ltd.	13.18	1.47
Anand Rathi Share and Stock Brokers Ltd.	13.67	1.21	1.97
Average	13.59	1.58	2.16

 

End

 

US$1 = INR 96.56

Edited by Shubhayan Bhattacharya

 

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