Birlasoft Ltd Q2 FY27 Results (NSE: BSOFT)

28 Oct 2026 · Analysis by Alpha Inflection

Signal: Margin pressure

The read

The revenue recovery continued at ₹14,162.00 million, +6.6% YoY, but the margin arc weakened: derived EBITDA margin fell to 15.20% from 17.61% and EBIT declined 1.5% despite growth. PAT growth of 37.5% to ₹1,596.46 million was therefore more tax- and other-income-led than operating-led, while Manufacturing and BFSI supplied the growth and Life Sciences remained weak.

P&L walk

Revenue increased to ₹14,162.00 million, +6.6% YoY and +2.7% QoQ, but EBIT fell 1.5% YoY to ₹1,902.58 million as employee costs rose 8.2%; PAT rose 37.5% to ₹1,596.46 million mainly because other income increased 92.9% and the tax charge declined 30.3%.

Segments

Manufacturing was the main consolidated growth driver, with revenue up 13.0% YoY to ₹5,486.07 million and segment result up 8.8% to ₹1,368.47 million; Life Sciences & Services dragged, with revenue down 2.3% and segment result down 15.6% YoY.

Key positives

• Consolidated revenue reached ₹14,162.00 million, +6.6% YoY, improving from +2.4% in Q4FY26; Manufacturing revenue grew 13.0% and BFSI revenue grew 10.4%.
• H1 operating cash flow increased to ₹3,807.47 million from ₹1,897.62 million, a 100.6% YoY improvement.
• Standalone revenue grew 24.4% YoY to ₹8,583.88 million, materially faster than consolidated revenue growth of 6.6%.

Key concerns

• Derived EBITDA margin fell 241bps YoY to 15.20% as employee costs rose 8.2%, faster than revenue growth of 6.6%.
• EBIT declined 1.5% YoY to ₹1,902.58 million even as revenue grew, indicating weaker operating conversion.
• Life Sciences & Services revenue declined 2.3% YoY and segment result declined 15.6% to ₹440.45 million.
• Finance costs increased 51.8% YoY to ₹77.37 million, although the absolute burden remains modest.

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