Birlasoft Ltd logo

Birlasoft Ltd

BSOFT NSE

Birlasoft is engaged in Computer programming, consultancy, and related activities. It provides software development and IT consulting to its customers predominantly in Banking, Financial Services, and Insurance, Life Sciences and Services, Energy Resources and Utilities, and Manufacturing. The Company’s registered office is in Pune. It is part of The CK Birla Group, Birlasoft, comprising over 10,000 plus professionals. [1] [2]

AI Verdict: HOLD Confidence: 5%

Birlasoft trades at a reasonable PE of 17.7x with a nearly debt-free balance sheet, but declining sales growth (TTM -1%) and a sharp deterioration in working capital days from 82 to 175 days signal operational stress. The stock's -22% one-year return and mixed analyst consensus (43% buy, 43% hold) suggest waiting for clearer growth visibility.

Key Fundamentals

MicrocapComputer Software & ConsultingInformation Technology
Market Cap
₹8,637 Cr
Volatility
Moderate
P/E Ratio
16.18
EBITDA
₹825 Cr
Return on Equity
20.49%
Debt to Equity
0.04
Book Value
₹147.15
EPS
₹23.05
52W High
₹474
52W Low
₹306.35

Technical Indicators

Key Insights

Strengths

2
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 32.9%

Weaknesses

2
  • The company has delivered a poor sales growth of 8.35% over past five years.
  • Working capital days have increased from 81.9 days to 175 days

Growth Rate

Revenue Growth
-3.17% ↘
Net Income Growth
-1.05% ↘
Cash Flow Change
-18.20% ↘
ROE
-27.48% ↘
ROCE
-27.12% ↘
EBITDA Margin (Avg.)
4.49% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 26d ago
HOLD
Risk medium

Birlasoft trades at a reasonable PE of 17.7x with a nearly debt-free balance sheet, but declining sales growth (TTM -1%) and a sharp deterioration in working capital days from 82 to 175 days signal operational stress. The stock's -22% one-year return and mixed analyst consensus (43% buy, 43% hold) suggest waiting for clearer growth visibility.

Bull Case 7
  • Nearly debt-free balance sheet provides financial flexibility and resilience during IT spending downturns
  • PE ratio of 17.7x is attractive relative to mid-cap IT peers that typically trade at 25-35x, offering valuation comfort
  • Consistent ROE of 17% over 3 and 5 years demonstrates efficient capital allocation and profitability
  • Healthy dividend payout ratio of 32.9% with current yield of 0.76% rewards shareholders while retaining growth capital
  • Compounded profit growth of 19% over 3 years significantly outpaces sales growth, indicating margin expansion and operating leverage
  • 10-year stock CAGR of 11% shows long-term wealth creation track record despite recent weakness
  • Price-to-book of 2.23x is reasonable for an IT services company, suggesting limited downside from asset value perspective
Bear Case 8
  • TTM sales growth of -1% indicates revenue contraction, a red flag for a mid-cap IT company that should be in growth phase
  • Working capital days ballooned from 81.9 to 175 days, signaling potential client payment delays or poor receivables management
  • Stock has declined 22% in the last one year, significantly underperforming broader market indices
  • 5-year compounded sales growth of only 8% is below industry average for mid-cap IT firms targeting double-digit growth
  • 3-year stock CAGR of -1% shows the market has not rewarded the company despite profit growth, suggesting trust deficit
  • ROE declined from 17% (3-year and 5-year average) to 14% last year, indicating deteriorating return efficiency
  • 14.29% of analysts rate the stock a SELL, and only 43% recommend BUY, reflecting lack of strong conviction
  • 5-year stock CAGR of 0% means investors have earned zero capital appreciation over half a decade despite market tailwinds

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 25d ago
Neutral 1
  • FY26 results published in newspapers May 8

    Birlasoft published its audited consolidated FY26 financial results extract in Financial Express, Indian Express, and Loksatta on May 7, 2026, per SEBI LODR Regulation 33.

TL;DR: Only a routine regulatory disclosure was reported for Birlasoft this period, with no material positive or negative developments surfacing. The company fulfilled its SEBI compliance obligation by publishing FY26 results in newspapers. With no operational or strategic news to assess, the near-term outlook remains data-dependent on upcoming quarterly guidance and deal announcements.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,226
1,263
1,310
1,343
1,363
1,327
1,368
1,363
1,317
1,285
1,329
1,348
1,349
Expenses
1,059
1,070
1,103
1,129
1,141
1,132
1,203
1,199
1,143
1,126
1,116
1,103
1,099
Operating Profit
167
193
207
214
222
195
165
163
174
159
213
245
249
OPM %
14%
15%
16%
16%
16%
15%
12%
12%
13%
12%
16%
18%
18%
Other Income
-2
14
16
28
46
35
33
21
20
33
22
-27
-4
Interest
4
4
6
6
4
4
7
7
6
5
5
6
4
Depreciation
21
21
22
21
21
21
22
21
22
21
20
20
19
PBT
140
182
196
215
242
205
170
156
166
166
210
192
222
Tax %
20%
24%
26%
25%
26%
27%
25%
25%
27%
36%
45%
37%
21%
Net Profit
112
138
145
161
180
150
128
117
122
106
116
120
176
EPS in Rs
4.08
5
5.27
5.84
6.53
5.44
4.61
4.23
4.39
3.83
4.17
4.3
6.29
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
2,990
3,224
3,320
2,250
2,551
3,291
3,556
4,130
4,795
5,278
5,375
5,310
Expenses
2,666
2,790
2,971
1,967
2,244
2,899
3,026
3,490
4,273
4,442
4,678
4,444
Operating Profit
324
435
349
283
306
392
529
640
522
836
698
866
OPM %
11%
13%
10%
13%
12%
12%
15%
16%
11%
16%
13%
16%
Other Income
35
16
47
87
100
43
19
66
22
104
108
24
Interest
26
17
14
8
11
16
13
13
19
20
23
20
Depreciation
85
69
83
40
50
83
80
77
82
85
86
80
PBT
248
365
299
322
346
336
455
617
442
835
697
790
Tax %
5%
23%
20%
21%
16%
33%
29%
25%
25%
25%
26%
34%
Net Profit
237
281
239
254
292
224
321
464
332
624
517
518
EPS in Rs
12.05
14.22
12.08
12.8
10.56
8.11
11.57
16.59
12.06
22.61
18.6
18.55
Div. Payout %
9%
15%
17%
18%
19%
25%
30%
27%
29%
29%
35%
35%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
38
38
38
38
55
55
55
56
55
55
56
56
Reserves
1,259
1,348
1,545
1,779
1,659
1,837
2,124
2,527
2,393
2,989
3,423
4,057
Borrowings
505
250
387
310
38
145
128
123
102
93
151
141
Other Liabilities
473
547
559
606
746
650
686
677
637
788
833
1,012
Total Liabilities
2,274
2,183
2,528
2,733
2,498
2,687
2,994
3,383
3,187
3,926
4,462
5,266
Fixed Assets
730
630
671
829
588
751
698
725
736
697
744
834
CWIP
12
36
138
32
0
2
7
3
6
12
23
2
Investments
82
12
79
129
191
33
571
840
563
1,320
1,754
2,171
Other Assets
1,451
1,505
1,641
1,743
1,719
1,901
1,719
1,816
1,882
1,897
1,942
2,259
Total Assets
2,274
2,183
2,528
2,733
2,498
2,687
2,994
3,383
3,187
3,926
4,462
5,266
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
289
410
163
407
-72
310
558
281
561
718
588
481
Investing
-102
-146
-150
-193
123
-42
-444
-309
252
-625
-438
-143
Financing
-40
-307
80
-128
-116
-180
-97
-147
-636
-168
-215
-233
Net Cash Flow
147
-42
93
86
-64
88
17
-176
176
-74
-65
105
Free Cash Flow
199
286
-25
292
-161
258
533
219
504
699
541
441
CFO/OP
113
113
66
164
-11
100
118
72
133
108
111
89
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
85
78
86
131
102
82
53
60
56
72
67
83
Cash Conversion Cycle
85
78
86
131
102
82
53
60
56
72
67
83
Working Capital Days
4
35
25
44
56
46
38
53
38
39
32
175
ROCE %
15%
23%
16%
16%
17%
18%
22%
25%
17%
30%
21%
22%

Shareholding Pattern

As of Mar 2026
Promoters 40.39%
DIIs 23.35%
Public 18.36%
FIIs 13.65%
Others 4.25%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
40.72%
40.67%
40.66%
40.55%
40.40%
40.32%
41.48%
41.31%
41.08%
41.03%
40.97%
40.95%
40.92%
40.90%
40.86%
40.82%
40.63%
40.63%
40.53%
40.51%
40.39%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
21.25%
23.48%
18.82%
11.71%
11.05%
11.68%
12.38%
11.26%
10.91%
13.65%
DIIs
15.53%
17.37%
20.34%
19.66%
21.18%
19.93%
18.82%
20.10%
21.20%
24.49%
21.47%
20.16%
18.62%
20.90%
24.25%
24.63%
24.53%
22.43%
21.92%
24.11%
23.35%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
19.05%
17.23%
15.89%
16.44%
17.31%
18.89%
21.41%
21.85%
22.13%
18.99%
15.47%
14.25%
13.81%
15.94%
19.22%
19.42%
19.18%
20.04%
21.47%
20.03%
18.36%
Others
24.70%
24.73%
23.10%
23.34%
21.12%
20.86%
18.30%
16.73%
15.59%
15.48%
22.08%
3.39%
3.17%
3.45%
3.95%
4.08%
3.98%
4.51%
4.82%
4.43%
4.25%
No. of Shareholders
1,05,351
1,29,553
1,80,424
2,23,438
2,88,973
3,43,012
3,53,172
3,83,017
3,80,106
3,64,088
3,18,348
3,20,155
3,38,388
3,82,522
4,45,814
4,50,612
4,49,493
4,52,892
4,47,495
4,20,986
3,96,641

Documents

Frequently Asked Questions about Birlasoft Ltd

What does Birlasoft Ltd do?
Birlasoft is engaged in Computer programming, consultancy, and related activities. It provides software development and IT consulting to its customers predominantly in Banking, Financial Services, and Insurance, Life Sciences and Services, Energy Resources and Utilities, and Manufacturing. The Co...
Where is Birlasoft Ltd (BSOFT) listed?
Birlasoft Ltd is listed on the Indian stock exchanges. It is listed on NSE: BSOFT and BSE: 532400. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Birlasoft Ltd belong to?
Birlasoft Ltd operates in the Information Technology sector within the IT - Software industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Birlasoft Ltd?
Birlasoft Ltd has a market capitalisation of approximately ₹8636.74 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Birlasoft Ltd?
The Price-to-Earnings (PE) ratio of Birlasoft Ltd is 16.18. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Birlasoft Ltd?
Over the past 52 weeks, Birlasoft Ltd has traded between a low of ₹306.35 and a high of ₹474. This range helps investors understand the stock's price volatility and recent trading levels.
Does Birlasoft Ltd pay dividends?
Yes, Birlasoft Ltd has a dividend yield of 2.11%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Birlasoft Ltd?
Birlasoft Ltd has a Return on Equity (ROE) of 20.49%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Birlasoft Ltd on Tapetide?
On Tapetide, you can view Birlasoft Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Birlasoft is engaged in Computer programming, consultancy, and related activities. It provides software development and IT consulting to its customers predominantly in Banking, Financial Services, and Insurance, Life Sciences and Services, Energy Resources and Utilities, and Manufacturing. The Company’s registered office is in Pune. It is part of The CK Birla Group, Birlasoft, comprising over 10,000 plus professionals. [1] [2]

Website birlasoft.com
CEO Mr. Angan Arun Guha
Employees 10,882
Listed 1999-11-24
Face Value ₹ 2
Issued Size 27,86,90,185

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