Birlasoft Q2 Profit Jumps 37.5% YoY to ₹160 Cr

Birlasoft (BSOFT) shares surged over 10% after announcing strong Q2FY27 results — net profit jumped 37.5% YoY to ₹160 crore, revenue rose 6.6% to ₹1,416 crore, and the board declared an interim dividend of ₹3 per share. Despite margin pressure, brokerages upgraded their outlook, with DAM Capital setting a target of ₹370. 📊 Key Financial Highlights (Q2FY27) Metric Q2FY27 YoY Change QoQ Change Notes Net Profit ₹160 crore +37.5% −0.6% Driven by growth in BFSI, manufacturing, and lifesciences verticals Revenue ₹1,416 crore +6.6% +2.7% Supported by digital, data, and ERP service lines EBIT Margin 13.4% ↓110 bps ↓90 bps Impacted by wage hikes and higher sales investments EBITDA Margin 15.2% ↓84 bps ↓95 bps Margins expected to stabilize near 15% Total Contract Value (TCV) $116 million +8% −31% Some deals deferred to Q3–Q4 Dividend ₹3/share — — 150% of face value ₹2; payable within 30 days 💬 Management Commentary CEO Angan Guha emphasized steady growth across key accounts and verticals, with strong traction in digital transformation and AI-driven services. The company saw a 10% increase in machine-generated code, improving delivery efficiency. Management expects better performance in H2FY27, with stable demand and margin recovery. 📈 Market Reaction Stock Price: Jumped 11.5% intraday to ₹341.45 (BSE), marking its biggest single-day gain in 5 years. Volume: Over 7 million shares traded across NSE and BSE in early hours. 52-week range: ₹267.05 (low) – ₹473.75 (high). Brokerage Views: DAM Capital: Upgraded to Buy, target ₹370. Nuvama: Retained Hold, raised target to ₹300. ICICI Securities: Neutral stance, citing margin pressure. ⚠️ Key Risks & Outlook Margin Pressure: Wage hikes and sales investments continue to weigh on profitability. Deal Deferrals: Some contracts shifted to later quarters, affecting short-term growth visibility. Valuation: Trading near ₹330–₹340 range; upside potential moderate until margin expansion materializes.