News Earnings Birlasoft Q3FY26 Results: Net Profit Declines 2.5% YoY to ₹1,198.89 Million Despite Sequential GrowthBirlasoft Q3FY26 Results: Net Profit Declines 2.5% YoY to ₹1,198.89 Million Despite Sequential Growth
Birlasoft Limited reported Q3FY26 consolidated net profit of ₹1,198.89 million, down 2.5% YoY but up 3.3% sequentially. Revenue from operations declined 1.1% YoY to ₹13,475.32 million. The company faced a significant ₹406.88 million exceptional charge due to new labour codes implementation. Manufacturing segment contributed ₹5,086.35 million in revenue while Banking, Financial Services and Insurance segment generated ₹3,281.05 million. Nine-month performance showed revenue decline of 2.4% to ₹39,613.33 million and net profit drop of 13.2% to ₹3,424.25 million.
*this image is generated using AI for illustrative purposes only.
Birlasoft Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, showing a mixed performance with sequential growth but year-over-year decline in key metrics. The IT services company reported consolidated net profit of ₹1,198.89 million, representing a 2.5% decline from ₹1,169.42 million in the corresponding quarter of the previous year, though showing a 3.3% improvement from the previous quarter.
Financial Performance Overview
The company's financial performance for Q3FY26 reflected both challenges and resilience across different metrics:
| Metric | Q3FY26 | Q3FY25 | QoQ Change | YoY Change |
|---|---|---|---|---|
| Revenue from Operations | ₹13,475.32 million | ₹13,627.03 million | +1.4% | -1.1% |
| Total Income | ₹13,609.42 million | ₹13,834.78 million | +0.7% | -1.6% |
| Profit Before Tax | ₹1,917.57 million | ₹1,559.85 million | -8.7% | +22.9% |
| Net Profit | ₹1,198.89 million | ₹1,169.42 million | +3.3% | +2.5% |
| Basic EPS | ₹4.28 | ₹4.20 | +1.9% | +1.9% |
Revenue from operations stood at ₹13,475.32 million, down 1.1% year-over-year but up 1.4% sequentially from ₹13,289.03 million in Q2FY26. Total income reached ₹13,609.42 million, including other income of ₹134.10 million.
Impact of New Labour Codes
A significant development during the quarter was the implementation of new labour codes, which created a substantial exceptional charge:
| Impact Details | Amount |
|---|---|
| Exceptional Charge - Labour Codes | ₹406.88 million |
| Impact on Gratuity Liability | Increased due to past service cost |
| Impact on Leave Liability | Increased due to wage definition changes |
On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020. These labour codes consolidate twenty-nine existing labour laws into a unified framework governing employee benefits during employment and post-employment.
Segment-wise Performance
Birlasoft's business segments showed varied performance during Q3FY26:
| Segment | Q3FY26 Revenue | Q3FY25 Revenue | Segment Results Q3FY26 |
|---|---|---|---|
| Banking, Financial Services and Insurance | ₹3,281.05 million | ₹3,284.77 million | ₹1,010.77 million |
| Manufacturing | ₹5,086.35 million | ₹5,471.79 million | ₹1,541.88 million |
| Energy and Utilities | ₹2,252.16 million | ₹2,143.56 million | ₹896.76 million |
| Life Sciences & Services | ₹2,855.76 million | ₹2,726.91 million | ₹563.52 million |
The Manufacturing segment remained the largest contributor with ₹5,086.35 million in revenue, though down from ₹5,471.79 million in Q3FY25. Banking, Financial Services and Insurance segment maintained stable performance at ₹3,281.05 million. Life Sciences & Services showed growth to ₹2,855.76 million from ₹2,726.91 million year-over-year.
Nine-Month Performance
For the nine months ended December 31, 2025, Birlasoft's performance reflected ongoing market challenges:
| Nine-Month Metrics | FY26 (9M) | FY25 (9M) | Change |
|---|---|---|---|
| Revenue from Operations | ₹39,613.33 million | ₹40,583.51 million | -2.4% |
| Net Profit | ₹3,424.25 million | ₹3,946.55 million | -13.2% |
| Basic EPS | ₹12.26 | ₹14.21 | -13.7% |
The nine-month period showed revenue decline of 2.4% to ₹39,613.33 million, while net profit decreased 13.2% to ₹3,424.25 million, primarily impacted by the exceptional charge and market conditions.
Standalone Results
Birlasoft's standalone performance for Q3FY26 showed stronger revenue growth compared to consolidated results, with revenue reaching ₹7,495.95 million, up from ₹6,603.14 million in Q3FY25. Standalone net profit was ₹656.09 million compared to ₹578.87 million in the previous year, representing a 13.3% increase despite the labour code impact.
The Board of Directors approved these unaudited financial results at their meeting held on January 28, 2026, with the results being reviewed by the Audit Committee and receiving an unmodified conclusion from statutory auditors S R B C & CO LLP.
Historical Stock Returns for Birlasoft
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.97% | -0.42% | -10.30% | +1.71% | -22.21% | +56.09% |
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