The company’s net profit stood at ₹160.9 crore for the quarter ended June 30, 2026, compared with ₹106.4 crore a year earlier.
Revenue from operations rose 7.4% to ₹1,379 crore from ₹1,285 crore in the corresponding quarter last year.
The standout feature of the quarter was margin expansion, indicating that Birlasoft generated significantly higher profit even though revenue growth remained in the single digits.
Operating performance strengthens
EBITDA increased 40.4% year-on-year to ₹222.6 crore from ₹158.6 crore.
The EBITDA margin expanded to 16.1% from 12.3% a year ago.
A nearly four-percentage-point improvement in margins suggests the company benefited from better operational efficiency, improved project mix and tighter cost management.
BFSI, ERP and AI deals drive growth
Birlasoft said revenue growth during the quarter was led by its Banking, Financial Services and Insurance (BFSI) and Life Sciences & Services (LSS) verticals.
Among service lines, Enterprise Resource Planning (ERP) and Infrastructure Services were the key growth drivers.
Chief Executive Officer and Managing Director Angan Guha said the company delivered 2.3% sequential revenue growth, despite a challenging macroeconomic environment.
“We have delivered a sequential revenue growth of 2.3% quarter on quarter, reflecting stable performance in the face of a macro-environment that remains challenging,” Guha said.
He added that deal signings reached $169 million in total contract value (TCV) during the quarter, up 20% year-on-year, and included several AI-led engagements.
Growing deal wins are an important leading indicator for IT services companies, as they provide visibility into future revenue. The increase in AI-related contracts also reflects rising enterprise spending on artificial intelligence projects.
Guha said the company continues to invest in technology capabilities and its sales force to strengthen the deal pipeline through the rest of the year.
Cash generation improves
Birlasoft also reported stronger cash generation during the quarter.
Chief Financial Officer Chandrasekar Thyagarajan said robust collections helped improve the company’s Days Sales Outstanding (DSO) to 55 days.
A lower DSO means the company is collecting payments from customers faster, improving cash flows and reducing working capital requirements.
Cash and cash equivalents rose to ₹28,786 million at the end of June 2026, up about 9% quarter-on-quarter and 26% year-on-year.
“As a result, we have started the current financial year on a strong note,” Thyagarajan said.
Headcount falls, but attrition improves
On the workforce front, Birlasoft’s employee strength stood at 11,057 as of June 30, down from 11,363 in the previous quarter and 11,834 a year earlier.
Despite the decline in headcount, the company reported an improvement in employee retention.
Attrition fell to 11.7% in the first quarter from 13% in the March quarter.
Utilisation also edged up to 81.7%, compared with 81.5% in the previous quarter and 81.2% a year ago.
The combination of lower attrition and higher utilisation suggests Birlasoft is deploying its workforce more efficiently while retaining a larger share of its talent—a positive trend for profitability.
Ahead of the earnings announcement, Birlasoft shares closed 2.57% higher at ₹301 on the NSE on July 28.
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