Birlasoft Profits Soar 51% on AI Deals, Margin Gains

Birlasoft, part of the CKA Birla Group, announced a strong first quarter for FY27, ending June 30, 2026. The company's consolidated net profit soared by 51.2% compared to the previous year, reaching ₹160.9 crore. Revenue from operations saw a 7.4% increase, amounting to ₹1,379 crore.

A key highlight of the quarter was the significant expansion of operating margins. EBITDA grew by 40.4% year-on-year to ₹222.6 crore, driving the EBITDA margin up to 16.1% from 12.3% in the prior year. This improvement reflects enhanced operational efficiency, a better project mix, and effective cost management.

Growth in the quarter was primarily fueled by the Banking, Financial Services and Insurance (BFSI) and Life Sciences & Services (LSS) verticals, alongside strong performance in Enterprise Resource Planning (ERP) and Infrastructure Services. Total contract value (TCV) for new deals signed reached $169 million, marking a 20% increase year-on-year, with a notable contribution from AI-led engagements.

Financially, Birlasoft demonstrated improved cash generation, with cash and cash equivalents rising to ₹28,786 million. Days Sales Outstanding (DSO) improved to 55 days, indicating faster customer payment collections. Workforce management also saw positive trends, with employee headcount decreasing to 11,057, while attrition rates dropped to 11.7% and utilization edged up to 81.7%.