Q4 2025 Birlasoft Ltd Earnings Call Transcript
Key Points
- Birlasoft Ltd (BOM:532400) reported a sequential increase in total contract value (TCV) during Q4, with deals worth $236 million signed, marking a 4% increase from Q3.
- The company achieved a significant multiyear engagement with a new customer in the UK, deploying advanced AI-powered capabilities.
- EBITDA margin rose to 13.2% in Q4, a sequential expansion of 119 basis points, driven by operational efficiencies and one-off benefits.
- Strong cash flow generation was maintained, with cash and cash equivalents growing by 24% year-on-year.
- The Board of Directors proposed a final dividend of INR4 per share, bringing the total dividend for the year to INR6.5 per share, translating to a payout of about 35%.
- Consolidated revenue for FY25 grew only 1.8% year-on-year, with a flattish performance in dollar terms compared to FY24.
- The company faced a decline in Q4 revenue to INR1,316 crores ($152.2 million), attributed to soft demand and project closures.
- Birlasoft Ltd (BOM:532400) experienced a 5.4% quarter-on-quarter decline in dollar terms due to higher-than-usual furloughs and project ramp-downs.
- The company anticipates muted revenue growth in Q1 FY26, with potential for minor degrowth due to ongoing macroeconomic challenges.
- ERP business declined by 6.4% year-on-year, with challenges in transitioning clients to cloud-based solutions like SAP S/4HANA and Oracle Fusion.
Ladies and gentlemen, good day, and welcome to the Q4 FY25 earnings conference call hosted by Birlasoft Limited. (Operator Instructions)
I now hand the conference over to Mr. Abhinandan Singh, Head Investor Relations, Birlasoft. Thank you, and over to you, Mr. Singh.
Thank you and welcome, folks. By now you would have received our or seen our results that were announced last evening India time. Those are also available on our website, www.birlasoft.com.
Joining me on this call this morning are our CEO and MD, Mr. Angan Guha; and our CFO, Ms. Kamini Shah. We will begin the call today as usual with opening remarks from both Angan and Kamini. And after that, we'll open up the floor for your questions.
But before I hand over the floor to Angan, a quick reminder that anything that we say on this call on the company's outlook for the future could be a forward-looking statement involving significant uncertainty and
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