Birlasoft Limited (BSE: 532400, NSE: BSOFT), a part of the CKA Birla Group, has released its financial results for the first quarter, revealing a slight decline in revenue and elevated tax rates.

Financial Performance

Birlasoft reported consolidated revenue of ₹12,849.00 million, down 2.4% quarter-on-quarter (QoQ) and 3.2% year-on-year (YoY). In USD terms, revenue stood at $150.70 million, representing a 1% QoQ decline.

The company's EBITDA for the quarter was ₹1,588.00 million, with an EBITDA margin of 12.4%. Profit After Tax (PAT) came in at ₹1,064.00 million, translating to a basic Earnings Per Share (EPS) of ₹3.81.

Elevated Tax Rates

A notable aspect of Birlasoft's Q1 results is the elevated tax rate. The company expects tax rates to remain around 35.9% before returning to historical levels. This higher tax rate has impacted the company's bottom line for the quarter.

Segment Performance

Among industry verticals, Energy & Utilities, Life Sciences & Services, and Banking, Financial Services and Insurance (BFSI) showed growth in dollar terms:

However, the Manufacturing vertical, which is Birlasoft's largest, experienced a decline due to project closures and ramp-downs.

Deal Wins and Client Base

Birlasoft secured deals with a Total Contract Value (TCV) of $141.00 million during the quarter, including new deal wins of $76.00 million. The company's active client count stood at 247, compared to 254 in the previous quarter.

AI and Digital Transformation

CEO and Managing Director Angan Guha highlighted the company's focus on AI-powered capabilities, including Generative AI. Birlasoft has been deploying these advanced technologies across multiple customer engagements and has been winning deals centered on Generative AI.

Operational Efficiency and Cash Position

Despite the revenue decline, Birlasoft continues to generate healthy cash flows. Cash and cash equivalents rose to $266.60 million by the end of the quarter, up 3% QoQ and 16% YoY.

Management Commentary

Angan Guha stated, "While the demand environment remains challenging due to the prevailing macroeconomic conditions, our deal pipeline is robust and we expect an uptick in deal wins as customer decision-making picks up."

Chief Financial Officer Kamini Shah added, "We are making judicious investments in the business, prioritising initiatives where we anticipate returns in the medium term."

Leadership Change

The company announced that Kamini Shah will be stepping down as CFO, effective August 7, 2025. Chandrasekar Thyagarajan has been appointed as the new Chief Financial Officer and Key Managerial Personnel, effective August 8, 2025.

As Birlasoft navigates through a challenging macroeconomic environment, the company remains focused on operational efficiency, cash flow generation, and strategic investments in AI and digital transformation capabilities.

Birlasoft Limited , a part of the CK Birla Group, has announced its financial results, revealing a significant decline in both revenue and profitability compared to the same period last year.

Financial Performance

The IT services company reported a consolidated net profit of ₹106.40 crore, down 29.2% year-on-year from ₹150.20 crore. Revenue from operations declined 3.2% to ₹1,284.80 crore from ₹1,327.40 crore in the same period last year.

Operational Metrics

Birlasoft's operating profit dropped 21% to ₹138.00 crore, with the EBIT margin contracting to 10.7% from 13.7% in the previous year.

Segment Performance

Despite the overall decline, Birlasoft saw growth in three of its four vertical segments:

• Energy & Utilities
• Life Sciences & Services
• Banking, Financial Services and Insurance (BFSI)

However, the Manufacturing vertical, which is Birlasoft's largest segment, experienced a decline due to project closures and ramp-downs, outweighing the growth in other areas.

Deal Wins and Client Metrics

Birlasoft secured new deals with a Total Contract Value (TCV) of $141 million during the period, including:

• New deal wins: $76 million
• Renewals: $65 million

The company's active client count stood at 247, compared to 254 in the previous quarter.

Digital & Data Services

The company's Digital & Data services grew 2.6% quarter-on-quarter, showing resilience in this segment.

Cash Position

Birlasoft's cash and cash equivalents increased 19.4% year-on-year to ₹2,286.40 crore, indicating a strong liquidity position.

Management Commentary

CEO Angan Guha commented on the results:

"Three of our four verticals delivered sequential growth, but Manufacturing remained soft in a challenging demand environment."

Outlook

Despite the challenging quarter, Birlasoft remains focused on navigating the current market conditions. The company's performance in the coming periods will be closely watched, particularly in light of the softness in the Manufacturing segment and the overall challenging demand environment.

As the IT services landscape continues to evolve, Birlasoft's ability to adapt and capitalize on growth opportunities in its stronger segments will be crucial for its future performance.