Birlasoft Shares Plunge 7% as Q3 Results Disappoint

Shares of

Ltd., a prominent IT services provider, tumbled 7% during the morning trading session on February 12, following the release of its third-quarter (Q3) results for the financial year 2024-25 (FY25). The company reported a sharp decline in net profit, which failed to meet market expectations, prompting criticism from analysts. Weak Q3 Performance Birlasoft’s revenue for the quarter ended December 31, 2024, saw a modest increase of 1.5% year-on-year, reaching Rs 13,627 crore. However, net profit plummeted 27.4% to Rs 1,169 crore, primarily due to rising employee costs and subdued seasonal demand. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) also took a hit, declining 23.7% year-on-year to Rs 1,634 crore. EBITDA margins contracted by 396 basis points to 12%, reflecting pressure on profitability.