Birlasoft Q1 FY27: Revenue Up 2.3% QoQ to ₹1,379.4 Crore, Deal Wins Surge 20% YoY to $168.7 Million
Birlasoft reported Q1 FY27 revenue of ₹1,379.4 crore, up 2.3% QoQ. Deal wins surged 20% YoY to $168.7 million, driven by AI engagements. EBITDA margins normalized to 16.1%, with EBITDA at ₹222 crore. The company is confident in sustaining growth momentum and strengthening its AI capabilities.
The results show positive growth and strong deal pipeline, indicating a healthy business outlook. However, the revenue growth is modest, and there are concerns about potential short-term margin impact from wage hikes, which moderate the overall impact.
The company reported positive year-on-year growth in revenue and EBITDA, along with a significant increase in deal wins, particularly in AI-led projects. Management expressed confidence in sustaining growth momentum.
Birlasoft Limited announced its financial results for the first quarter of FY27, reporting a sequential revenue growth of 2.3% in rupee terms, reaching ₹1,379.4 crore. In constant currency, the growth was 0.3% quarter-on-quarter, while dollar terms remained flat. The company's EBITDA margins normalized to 16.1%, with EBITDA reported at ₹222 crore, a significant year-on-year increase of 40.3%. Cash collections remained strong, leading to an increase in cash balances.
Total Contract Value (TCV) deal signings for the quarter were robust at $168.7 million, marking a 20% year-on-year increase, with a notable inclusion of several AI-led engagements. Birlasoft secured a strategic AI partnership with a leading US financial services player to accelerate AI innovation and expanded its engagement with the same client to transform operations using Gen AI, RPA, and AI Ops. In Europe, a multiyear deal was won with a banking group for AI-led transformation, cloud migration, and legacy platform modernization. Additionally, the company secured a strategic engagement with a global pharma and medtech firm to deploy Gen AI-powered solutions for pharmacovigilance.
The company highlighted its sustained investments in AI capabilities, including Agentic AI tools, the Birlasoft Cogito AI platform, talent transformation, and a Forward Deployed Engineering model. Over a quarter of the code generated is now through agentic AI tools. Birlasoft also launched LynX, an AI-powered test engineering platform, and is leveraging Sigma, an Agentic AIOps and AMS platform.
Financially, the consolidated revenue for Q1 FY27 stood at $145.2 million. The effective tax rate (ETR) for the quarter was 29.4%. Profit After Tax (PAT) was $16.9 million, translating to INR161 crore, with a basic non-annualized EPS of INR5.72 per share. Cash collections increased to $163.1 million, and DSO improved to 55 days. Cash and cash equivalents rose to ₹2,878.6 crore, a 9% increase quarter-on-quarter and 26% year-on-year. OCF to EBITDA was healthy at 108%.
Management expressed confidence in sustaining the growth momentum, driven by strong deal signings and a healthy pipeline, particularly in AI-led engagements. While acknowledging potential short-term margin dilution in Q2 FY27 due to wage increases (estimated at 170-200 basis points impact), the company expects to recover this through productivity improvements, maintaining a target of 15%+ EBITDA margins. The company is also focused on capability building through strategic acquisitions, particularly in AI, and is working on delivering consistent organic growth. The rationalization of tail accounts is largely complete, with a focus now on growing the top client relationships.
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