Birlasoft reported a 37.5% year-on-year (YoY) increase in consolidated net profit to ₹160 crore in the second quarter (Q2) of FY27, compared with ₹116 crore in the corresponding quarter last year.
Revenue from operations rose 6.6% to ₹1,416 crore from ₹1,329 crore a year earlier.
Despite the increase in revenue and net profit, the company's operating profitability weakened during the quarter. Earnings before interest and tax (EBIT) declined 1.4% year-on-year to ₹190.3 crore from ₹193 crore.
The EBIT margin also contracted to 13.4% from 14.5% in the corresponding quarter last year.
Birlasoft's board has recommended an interim dividend of ₹3 per equity share for FY27, equivalent to 150% of the share's face value of ₹2.
The dividend will be paid within 30 days of the board's announcement, in accordance with the provisions of the Companies Act, 2013.
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Global brokerage Nomura has assigned a 'Neutral' rating to Birlasoft shares and set a target price of ₹330.
Nomura said the company's Q2 revenue and EBITDA were slightly better than estimates. However, it emphasised that securing new deals and strengthening the pipeline would be essential to improving the growth rate.
The company also reported that its order book was below its own expectations, as several deals were pushed into Q3 and Q4.
Management said it aims to maintain EBITDA margins at around 15% or above, although seasonal fluctuations could affect performance.
The company has projected EBITDA margins of 15.6% and 15.7% for FY27 and FY28, respectively, compared with 16.3% in FY26.
Nuvama Institutional Equities said Birlasoft delivered a good performance in Q2 FY27.
The company's constant-currency (CC) revenue increased 2.1% quarter-on-quarter, significantly above the brokerage's estimate of 0.5% growth. However, constant-currency revenue declined 1.1% year-on-year.
The EBIT margin contracted by 130 basis points quarter-on-quarter to 13.4%, in line with the brokerage's expectations.
However, the pace of new deal wins remained slow.
Birlasoft reported a total contract value (TCV) of $116 million, down 31% quarter-on-quarter but up 8% year-on-year.
New deal bookings stood at $47 million, declining 18% compared with the previous quarter but increasing 18% from the corresponding period a year earlier.
The company's share price had fallen to a 52-week low of ₹267.05 on October 1, 2026, before reaching a 52-week high of ₹473.75 on February 11, 2026.
The latest quarterly results have brought renewed attention to Birlasoft shares, with the company's profit growth and revenue performance contrasting with pressure on operating margins and the need to strengthen its deal pipeline.
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