Birlasoft Ltd.
NSE: BSOFTBirlasoft Ltd.: A 30-second snapshot
Birlasoft (BSOFT) is a mid-cap IT services company trading at ₹314.4, down 24.1% over 12 months and 33.7% below its 52-week high, with the price below both the 50-DMA (₹364.15) and 200-DMA (₹385.77). Trailing PE stands at 17.0 against a forward PE of 12.9, with ROE of 13.66% and a dividend yield of 2.07%. Debt-to-equity of 3.42 is rising, which is unusual for an IT sector peer group where most large-caps carry negligible leverage.
P/E
17.0
Forward P/E
12.9
ROE
+13.7%
Debt / Equity
3.42
Profit Margin
+9.8%
Div. Yield
+2.1%
5Y ROE > 15%
1/5
5Y FCF > 0
4/5
Quality
48/100
News
8 headlines · 3 positive · 0 negative
Birlasoft Limited Reports Earnings Results for the Fourth Quarter and Full Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
BSOFT: Q4 FY26 delivered higher margins, strong cash growth, and robust deal wins amid soft demand - TradingView
TradingView
BSOFT: FY26 profit and revenue stable; final dividend of ₹4/share recommended; one-time labour cost hit - TradingView
TradingView
Birlasoft Limited Recommends Final Dividend for the Financial Year 2025-26 - marketscreener.com
marketscreener.com
Birlasoft recommends final dividend of 4 rupees per share - marketscreener.com
marketscreener.com
Recent context
- ·Q4 FY26 results reported on May 6 2026 showed higher margins and strong deal wins; management described robust order intake alongside soft demand conditions — profit and revenue were characterised as stable for the full year.
- ·Birlasoft declared a final dividend of ₹4/share for FY26, maintaining shareholder distributions despite reporting a one-time labour cost hit in the quarter.
- ·Mean analyst rating of 2.5 across 14 analysts (1–5 scale, lower = more constructive); the forward PE of 12.9 vs trailing PE of 17.0 reflects consensus expectation of earnings improvement in FY27.
Strengths
- +FCF was positive in 4 of the available historical years, indicating the business has generated cash across most of its measurable operating history.
- +5-year earnings growth of 44.5% indicates meaningful profit expansion over the period, even as revenue contracted — pointing to significant margin improvement or cost restructuring in the business model.
- +Forward PE of 12.9 is below the trailing PE of 17.0 and below sector peer Tech Mahindra (25.3), suggesting consensus earnings estimates embed growth relative to the current price.
- +Dividend yield of 2.07% — reinforced by a final dividend of ₹4/share declared for FY26 — reflects a company returning cash to shareholders even in a year described as having stable but not accelerating profit.
Weaknesses
- −Debt-to-equity of 3.42 is sharply elevated for an IT services company, with the trend flagged as rising; peers such as TCS, Infosys, and HCL Technologies operate with far lower leverage.
- −ROE of 13.66% has exceeded 15% in only 1 of the available historical years, ranking 6th of 6 in the IT peer group — materially below Infosys (31.4%), TCS (48.4%), and HCL Technologies (23.4%).
- −5-year revenue growth of -4.6% (negative) means the top line has contracted over the medium term; Q4 FY26 revenue declined year-on-year, and a one-time labour cost was reported alongside stable full-year profit.
- −Price is 33.7% below the 52-week high, 18.5% below the 200-DMA, and RSI is at 26.75 (oversold territory); the technical model identifies no support levels, with resistance clustered between ₹382 and ₹398.
Open questions
- ?Does the 44.5% earnings growth over 5 years reflect a durable improvement in operating efficiency, or is it primarily the result of one-time cost actions that may not recur as revenue remains under pressure?
- ?How does Birlasoft's debt-to-equity of 3.42 — and its rising trend — compare to the nature of the debt (lease obligations vs financial borrowings), and what are the covenants or maturity profile?
- ?If revenue growth remains negative or flat in FY27, can the forward PE of 12.9 be supported by margin expansion alone, or does the valuation embed top-line recovery?
- ?What is the structural reason BSOFT ranks 6th of 6 in ROE within its IT peer group, and is there a pathway — such as capital return or leverage reduction — that could close the gap to sector median?
Peer comparison: IT
Ranks 3 of 6 on qualityTechnical state
Current price
₹314.40
SMA 50
₹364.15
SMA 200
₹385.77
RSI (14)
26.8 (oversold)
From 52w high
-33.7%
1Y return
-24.1%
3M return
-32.4%
50-DMA
Below
200-DMA
Below
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 3.42 is sharply elevated for an IT services company; sector peers typically carry negligible debt, and the debt trend is flagged as rising, compounding leverage exposure.
- highPrice at ₹314.4 is 13.7% below the 50-DMA (₹364.15) and 18.5% below the 200-DMA (₹385.77); the stock is down 24.1% over 12 months and 32.4% over 3 months, with a 33.7% drawdown from its 52-week high. RSI at 26.75 is in oversold territory. No support levels are identified in the technical model.
- mediumROE of 13.66% cleared the 15% threshold in only 1 of the available historical years; against IT peers TCS (48.4%), Infosys (31.4%), and HCL Technologies (23.4%), capital efficiency is materially weaker.
- medium5-year revenue growth of -4.6% (negative) contrasts with 5-year earnings growth of 44.5%; divergence of this magnitude typically reflects margin expansion or restructuring rather than organic top-line compounding, and is not sustainable without revenue recovery.
- mediumQuality score of 53 ranks BSOFT 3rd of 6 in its IT peer group on that metric, but ROE ranks 6th of 6; consistency score of 36 indicates below-median financial quality.
- lowNews sample covers only 8 articles, all clustered around the Q4 FY26 results release on May 6 2026; coverage breadth is thin for a sentiment assessment to be considered fully reliable.
Cross-section contradictions
- Q4 FY26 deal wins are described as robust and margins improved, yet the stock is 33.7% below its 52-week high and has fallen 32.4% over the past 3 months — price action has not reflected the operational progress reported in the most recent quarter.
- 5-year earnings growth of 44.5% and a forward PE of 12.9 (vs trailing PE of 17.0) imply substantial profit growth, yet 5-year revenue growth is -4.6% and Q4 FY26 revenue declined year-on-year — earnings expansion built on a shrinking top line raises questions about sustainability.
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Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days