Birlasoft Shares Jump 11% After Second-Quarter Profit Rises 37.5% Year on Year
Key Facts
Birlasoft shares jumped 11% to 341.20 rupees in intraday trading on the Bombay Stock Exchange on Thursday, October 29, 2026, after the company reported results for the second quarter of fiscal 2027, according to Business Standard. The rise came amid heavy trading, with sequential quarterly profit improving. Net profit after tax rose 37.5% year on year to 159.6 crore rupees. But compared with the previous quarter, net profit fell 0.8%. The figures reflect strong annual profit growth, alongside a slight sequential decline.
Quarterly revenue was $148.3 million, up 2.1% from the previous quarter, but down 1.1% year on year on a constant-currency basis, according to Business Standard. This comparison puts quarterly revenue growth in a weaker context relative to the same period a year earlier. Revenue in the first quarter of fiscal 2027 was $145.2 million, providing a baseline for the two consecutive quarters. In the second quarter of fiscal 2026, the company posted revenue of 13,289 million rupees after quarterly growth of 3.4%. This shows that revenue growth in the current quarter did not extend to the constant-currency annual growth rate.
By contrast, the EBITDA margin was 15.2%, down 95 basis points from the previous quarter and 84 basis points from the same period last year. ICICI Securities attributed the margin pressure to wage increases and continued investment in sales and service lines, with operating efficiencies partly offsetting the impact. Management described it as "strong" in light of compensation increases and investments, Business Standard reported. The margin was 16.0% in the second quarter of fiscal 2026. The company's annual data also showed the margin rising to 16.3% in fiscal 2026, from 13.0% in fiscal 2025, despite a 1.2% decline in annual revenue.
Gross contract value in the quarter was $116 million, down 31.4% from the previous quarter and up 8% year on year. The total included $47 million in new contracts, representing 41% of the total. For the first half of fiscal 2027, gross contract value rose 15% year on year to $285 million. However, quarterly bookings came in below management's expectations, according to Business Standard. Contract performance therefore combined annual growth in bookings for the first half with a clear sequential decline in the second quarter.
Interest in the shares was evident in early trading volumes, with 7.07 million shares changing hands on the NSE and BSE in the first 22 minutes of the session. At 09:37 a.m., the stock was up 10% at 336.70 rupees, compared with a 0.23% gain in the BSE Sensex. Prices later rose 11% to 341.20 rupees in intraday trading. This coincided with the quarterly earnings announcement and an annual improvement in net profit. The comparison with the index highlights the scale of the stock's gains at that moment, while leaving unchanged the margin decline and the weakness in quarterly bookings compared with the previous quarter.
ICICI Securities said some deals had been pushed to the third and fourth quarters, while the sales pipeline remained steady "without any material improvement." The company said near-term performance would be affected by macroeconomic conditions and usual seasonal factors. The brokerage also pointed to weakness in the energy and utilities sector and the possibility that seasonal client holidays would affect the third quarter. Management, meanwhile, said it remained committed to continued investment in sales capabilities and areas to support future growth. The delayed deals and continued investment in these capabilities remain among the factors cited by management and the brokerage in discussing the coming quarters.