Birlasoft Jumps 11% as a 37% Profit Rise Outruns a 31% Drop in Quarterly Deal Wins

Birlasoft shares rose as much as 11% to Rs 341.20 on the BSE on Thursday morning after the mid-sized IT services company posted a sequential recovery in revenue for the September quarter, outpacing a market that was up only about 0.2% at the time. Trading was unusually heavy: about 7.07 million shares changed hands on the NSE and BSE in the first 22 minutes.

The jump stands out because the quarter was far from clean. Order bookings fell sharply, margins narrowed and one brokerage stayed cautious. The rally looks more like relief from a beaten-down base than a vote of confidence in a turnaround.

The numbers behind the move

For Q2 FY27, Birlasoft reported revenue of $148.3 million, or Rs 1,416.2 crore. In constant currency, that was up 2.1% from the June quarter but still 1.1% lower than a year earlier.

Net profit came in at Rs 159.6 crore, nearly flat (down 0.8%) from the previous quarter but up 37.5% from a year ago. The board declared an interim dividend of Rs 3 per share, with November 5 as the record date.

EBITDA margin was 15.2%, down 95 basis points from the previous quarter and 84 basis points from a year earlier. Management pointed to a company-wide pay rise during the quarter and continued spending on sales and domain capabilities, and said that given those costs the margin was strong.

The weak spot: deal flow

Total contract value for the quarter was $116 million, 31.4% lower than in Q1, though 8% higher than a year ago. New deals made up $47 million, or about 41% of that; renewals made up the rest. For the first half of FY27, TCV rose 15% year on year to $285 million.

Management admitted that bookings fell short of its own expectations, with some deals slipping into the third and fourth quarters. It described the pipeline as steady rather than improving.

ICICI Securities was blunt. It said the sequential revenue recovery offers limited comfort while revenue is still shrinking year on year and quarterly deal wins have fallen. It also flagged a weak energy and utilities vertical with no near-term recovery in sight, and seasonal furloughs that typically weigh on the December quarter. Management expects the second half to be better than the first, but the brokerage said growth visibility will stay weak without stronger order conversion. It remains cautious.

Why the stock rallied anyway

The answer is mostly in the chart. Birlasoft hit a 52-week low of Rs 267.05 on October 1, almost 44% below its February 11 high of Rs 473.75. Expectations were very low, so a quarter that showed revenue growing again and profit well above last year's level was enough to trigger buying.

Choice Broking's Sachin Gupta said the stock appears to be reversing after finding support in the Rs 266-270 zone, and that holding above Rs 330 could open a path to Rs 360-400. Thursday's high has already cleared that first level.

The bigger IT picture

The reaction contrasts with the large caps. Infosys fell nearly 4% this week after cutting its FY27 revenue growth guidance to 1-2% despite a large deal haul (see our earlier coverage). The sector is still dealing with cautious client spending and pricing pressure from AI-led efficiency deals. Birlasoft's move shows how sharply sold-off mid-tier names can bounce on modest improvement. Whether it lasts depends on whether the deals pushed into H2 actually close.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.