Q3 2026 Birlasoft Ltd Earnings Call Transcript
Key Points
- Birlasoft Ltd (BOM:532400) reported a stable revenue performance in Q3 FY26, with a growth of 0.3% in constant currency and 0.1% in dollar terms, despite it being a seasonally weak quarter.
- The company achieved a significant quarter-on-quarter expansion of 212 basis points in EBITDA margins, reaching 18.2%, driven by improved revenue quality, cost optimization, and one-off benefits.
- Total contract value (TCV) for Q3 stood at $202 million, marking an 89% increase quarter-on-quarter, with nearly half of it being new engagements.
- Birlasoft Ltd (BOM:532400) has successfully deployed AI-led capabilities across various verticals, including BFSI and manufacturing, enhancing its competitive edge.
- The company maintained a robust track record in cash collections, with cash and cash equivalents increasing by 6% quarter-on-quarter and 21% year-on-year, and a DSO of 54 days, among the best in the industry.
- The manufacturing vertical, despite showing growth in Q3, is expected to face headwinds in Q4, with softness anticipated to continue until Q1 or Q2 of the next financial year.
- Birlasoft Ltd (BOM:532400) anticipates pricing pressures in renewals, which could impact margins, particularly in the healthcare segment due to tariff uncertainties.
- The company faces challenges in achieving revenue growth, with a focus on increasing order bookings and pipeline creation to drive future growth.
- There is a cautious outlook for Q4 revenue growth due to factors such as three fewer working days and the one-off nature of some Q3 manufacturing growth.
- Despite strong deal wins, the company acknowledges that the number of clients has been rationalized, focusing on more profitable engagements, which may impact overall client count.
Ladies and gentlemen, good evening, and welcome to the Birlasoft Limited Q3 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Abhinandan Singh, Head of Investor Relations, Birlasoft Limited. Thank you, and over to you, Mr. Singh.
Thank you, and welcome, folks. By now, you have received or seen our results that were announced earlier today. Those are also available on our website, www.birlasoft.com. Joining me on this call this evening are our CEO and MD, Mr. Angan Guha; and our CFO, Mr. Chandrasekar Thyagarajan or Chandru as we call him. We will begin the call today, as usual, with opening remarks from both Angan and Chandru.
Before I hand over the floor to Angan, a quick reminder that anything that we say on this call and the company's outlook for the future could be a forward-looking statement involving
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