NewsEarningsBirlasoft Reports Strong Q2 FY26 Results with Improved Profitability and EBITDA MarginBirlasoft Reports Strong Q2 FY26 Results with Improved Profitability and EBITDA Margin
Birlasoft Limited announced Q2 FY26 results with revenue of ₹13,289.00 million, up 3.4% QoQ. EBITDA increased by 34.3% to ₹2,133.00 million, with margin expanding to 16.0%. Net profit grew 9.1% to ₹1,161.00 million. The company signed deals worth $107 million TCV, including $40 million in new wins. BFSI and Lifesciences & Services verticals showed growth, while Manufacturing declined. Cash position strengthened to ₹23,434.00 million. The Board declared an interim dividend of ₹2.50 per share. Despite challenging macroeconomic conditions, Birlasoft remains optimistic about future growth, particularly in AI-led services.
*this image is generated using AI for illustrative purposes only.
Birlasoft Limited , a part of the multibillion-dollar CKA Birla Group, has announced its financial results for the second quarter of fiscal year 2026, demonstrating resilience and operational efficiency in a challenging macroeconomic environment.
Financial Highlights
For Q2 FY26, Birlasoft reported:
| Metric | Q2 FY26 | Q1 FY26 | QoQ Change |
|---|---|---|---|
| Revenue | ₹13,289.00 | ₹12,849.00 | +3.4% |
| EBITDA | ₹2,133.00 | ₹1,588.00 | +34.3% |
| EBITDA Margin | 16.0% | 12.4% | +360 bps |
| Net Profit | ₹1,161.00 | ₹1,064.00 | +9.1% |
Key Performance Indicators
Revenue Growth: The company's revenue grew by 3.4% quarter-on-quarter to ₹13,289.00 million, driven by growth in the BFSI and Lifesciences & Services verticals.
EBITDA Margin Expansion: EBITDA margin significantly improved from 12.4% in Q1 FY26 to 16.0% in Q2 FY26, reflecting enhanced operational efficiencies and exchange rate benefits.
Cash Position: Cash and cash equivalents rose to ₹23,434.00 million by the end of Q2 FY26, up about 3% QoQ and 26% YoY, highlighting strong cash flow generation.
Deal Wins: Birlasoft signed deals with a Total Contract Value (TCV) of $107 million during the quarter, including new deal wins of $40 million.
Segment Performance
- The BFSI vertical grew by 1.8% QoQ in dollar terms.
- Lifesciences & Services (LSS) vertical showed strong growth, up 6.4% QoQ.
- The Manufacturing vertical experienced a sequential decline.
- Infrastructure services saw an impressive growth of 11.2% QoQ.
Management Commentary
Mr. Angan Guha, Chief Executive Officer and Managing Director of Birlasoft, stated, "We have delivered a healthy operating quarter in the face of a macro-environment that remains challenging. Our performance during the quarter under review also reflects our ability to drive operational efficiencies and generate strong cash flows."
Mr. Chandrasekar Thyagarajan, Chief Financial Officer, added, "Our focus continues to be on prioritising operational efficiency, cashflow generation, and prudent capital allocation."
Strategic Developments
- Birlasoft achieved AWS DevOps Competency status, enhancing its capabilities in delivering DevOps solutions.
- The company inducted Mr. Komal Jain as CEO−Americas to lead business across the United States, Canada, and Latin America.
Dividend Announcement
The Board of Directors has declared an interim dividend of ₹2.50 per equity share for FY 2025-26.
Outlook
Despite the challenging macro-environment, Birlasoft maintains a robust pipeline and expects an upswing in deal wins as customer decision-making picks up. The company continues to invest in enhancing its capabilities, particularly in AI-led services, including Agentic AI.
Birlasoft's strong performance in Q2 FY26, marked by improved profitability and operational efficiency, positions it well for future growth in the dynamic IT services landscape.
Note: All figures are in accordance with Ind AS accounting standards.
Historical Stock Returns for Birlasoft
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.69% | -0.92% | +4.21% | -2.95% | -36.00% | +106.28% |
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