Birlasoft share price jumps over 10% after Q2 results; Brokerages divided on software stock – Buy, sell or hold? – Markets

Birlasoft share price surged nearly 10 per cent on Thursday after the software and consulting company reported its Q2 results for the financial year 2026-27 and announced an interim dividend of Rs 3 per equity share. The stock also featured among the top 10 gainers on the National Stock Exchange (NSE).

As of 9:40 am, Birlasoft shares were trading at Rs 336.40, up Rs 30.10 or 9.8 per cent. The stock touched an intraday high of Rs 341.45, rising 11.5 per cent from its previous close of Rs 306.10.

Birlasoft Q2 Results

Birlasoft reported a 37.5 per cent year-on-year (YoY) increase in net profit to Rs 160 crore in the second quarter of FY27, compared with Rs 116 crore in the corresponding quarter of the previous year.

Revenue from operations increased 6.6 per cent YoY to Rs 1,416 crore in the quarter under review, against Rs 1,329 crore a year earlier.

However, the company’s operating performance remained subdued. Earnings before interest and tax (EBIT) declined 1.4 per cent YoY to Rs 190.3 crore from Rs 193 crore in the year-ago period.

Birlasoft Dividend

Along with its Q2 results, Birlasoft announced an interim dividend of Rs 3 per equity share against a face value of Rs 2 per share. The interim dividend represents a payout of 150 per cent, as per the company’s announcement.

Birlasoft Share Price Target

DAM Capital Upgrades to Buy

DAM Capital upgraded Birlasoft to Buy from Neutral and set a share price target of Rs 370. The brokerage expects the company to deliver mid-single-digit growth in FY28, supported by a strong recovery in the second half of FY27.

Nuvama Maintains Hold, Raises Target

Nuvama maintained its Hold rating on Birlasoft but raised its share price target to Rs 300 from Rs 280. The brokerage cited revenue growth of 2.1 per cent quarter-on-quarter in constant currency terms in Q2 FY27. However, softer deal wins remain a concern, with sustained growth dependent on stronger signings and AI-led opportunities.

Emkay Maintains Add Rating

Emkay maintained its Add rating on Birlasoft with a share price target of Rs 350. The brokerage raised its FY27-FY29 earnings per share estimates by 0.6-1.6 per cent following the company’s Q2 performance. Emkay expects a stronger second half, supported by the existing pipeline, client conversations and an anticipated improvement in deal intake.

Nirmal Bang Maintains Hold

Nirmal Bang maintained its Hold rating on Birlasoft with a share price target of Rs 317, indicating an upside potential of 3.7 per cent. The brokerage highlighted a recovery in growth but identified the order book as a key weakness.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)