Birlasoft reported revenue of $150.7 million for Q2 FY26, a slight increase of 0.1% quarter-over-quarter. The company saw a substantial EBITDA margin expansion to 16%, up from 12.4% in the previous quarter. Signed TCV stood at $107 million for the quarter. The company anticipates sequential revenue growth in the upcoming quarters. Birlasoft has appointed Komal Jain as the new CEO for Americas to drive growth in the region.
Financial Performance
Birlasoft announced its earnings for Q2 FY26, posting consolidated revenue of $150.7 million, reflecting a 0.1% sequential increase and a 3.4% growth in rupee terms. The company’s EBITDA margin significantly improved to 16%, compared to 12.4% in Q1 FY26. This expansion was driven by operational efficiencies, improved collections, and favorable exchange rates, alongside certain one-off gains.
Key Financial Metrics
Key highlights from the earnings report include:
- EBITDA increased by 34.3% quarter-on-quarter in rupee terms to Rs. 2,133 million.
- Cash and cash equivalents rose to Rs. 23,434 million, up 3% quarter-on-quarter.
- DSO (Days Sales Outstanding) improved to 55 days.
- Operating cash flow to EBITDA increased to 74.3%.
Deal Wins and Outlook
Birlasoft reported a signed TCV of $107 million in Q2 FY26. The company noted that some deal signings were delayed and are expected to be reflected in the next quarter’s TCV. Despite a challenging macroeconomic environment, Birlasoft expects sequential revenue growth in Q3 and Q4, driven by growth in BFSI and Life Sciences & Services verticals.
Strategic Developments
Birlasoft welcomed Komal Jain as the new CEO for Americas. This appointment aims to accelerate growth and strengthen client partnerships across the United States, Canada, and Latin America. The company is also focused on leveraging AI-led capabilities, including Agentic AI, across its engagements.
Tax Rate Expectations
The company anticipates an effective tax rate of approximately 42%-43% for the full fiscal year FY26. For FY27, the ETR is expected to settle between 28% and 30%.
Vertical Performance
BFSI continues to be a growth leader, with steady performance in insurance, asset management, and payments. Life Sciences and Energy & Utilities verticals are also expected to show continued growth. Manufacturing remains a challenge, and the company is taking measures to revive growth in this sector.
Source: BSE
