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BirlasoftBOM:532400 +1.02%80 ROA % is 13.36% as of Mar. 2026, which is 23% above its 10-year median of 10.87. GuruFocus rates BOM:532400 with a GF Score™ of 80/100 and a GF Value™ of ₹494.86 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,890 Software companies, Birlasoft ranks better than 84.12% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Birlasoft's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹7,037 Mil.
Birlasoft's average Total Assets over the quarter that ended in Mar. 2026 was ₹52,663 Mil. Therefore, Birlasoft's annualized ROA % for the quarter that ended in Mar. 2026 was 13.36%.
The historical rank and industry rank for Birlasoft's ROA % or its related term are showing as below:
BOM:532400'
s ROA % Range Over the Past 10 Years
Min: 8.65 Med: 10.87 Max: 17.54
Current: 10.74
During the past 13 years, Birlasoft's highest ROA % was 17.54%. The lowest was 8.65%. And the median was 10.87%.
BOM:532400's ROA % is ranked better than 84.12% of 2890
companies
in the Software industry
Industry Median: 1.705
vs BOM:532400: 10.74
Birlasoft (BOM:532400) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Birlasoft ROA % Related Terms
Birlasoft ROA % Historical Data
* Premium members only.
The historical data trend for Birlasoft's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Birlasoft's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Birlasoft ROA % vs Software Industry
For the Software industry and Technology sector, Birlasoft's ROA % distribution charts can be found below:
* The bar in red indicates where Birlasoft's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Birlasoft (BOM:532400) has a ROA % of 13.36% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Birlasoft and its competitors. This is 23% above median its historical median of 10.87. Over the past decade, Birlasoft's ROA % has ranged from 8.65 to 17.54. According to the industry distribution chart, Birlasoft ranks #459 out of 2890 companies in the Software industry, placing it in the top 15.9%.
Is Birlasoft's ROA % too high?
Birlasoft's current ROA % of 13.36% is 23% above median its 10-year median of 10.87. Over the past 10 years, this metric has ranged from a low of 8.65 to a high of 17.54. The Software industry median ROA % is 1.71. Birlasoft's value of 13.36% is 683.6% above this industry median. Based on the distribution chart, Birlasoft ranks #459 out of 2890 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Birlasoft has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Birlasoft's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Birlasoft ranks #459 out of 2890 companies for ROA %. This places Birlasoft in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 1.71. Birlasoft's value of 13.36% is 683.6% above this benchmark. Historically, Birlasoft's own ROA % has ranged from 8.65 to 17.54 over the past decade. While the company's 10-year median is 10.87 vs. the industry median of 1.71, Birlasoft has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Software company?
The median ROA % among Software companies is 1.71, based on 2,890 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Birlasoft's current ROA % of 13.36% is 683.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Birlasoft and its competitors. For the Software industry, the median ROA % is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Birlasoft's current ROA % is 13.36%, which is 23% above median its own 10-year median of 10.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Birlasoft stock overvalued right now?
Based on GuruFocus' analysis, Birlasoft (BOM:532400) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹494.86, compared to a current price of ₹291.10 — trading 41.2% below its estimated fair value. The current ROA % is 13.36%, which is 23% above median its 10-year median of 10.87 and 683.6% above the Software industry median of 1.71. Birlasoft's overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Birlasoft (BOM:532400), the current ROA % is 13.36% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Birlasoft (BOM:532400) Overvalued in 2026?
Based on GuruFocus' analysis, Birlasoft stock appears to be undervalued.
The current stock price of ₹291.10 is trading 41.2% below its estimated GF Value™ of ₹494.86.
GuruFocus considers Birlasoft to be Significantly Undervalued.
Key valuation signals for BOM:532400:
ROA %: 13.36% (23% above median its 10-year median of 10.87)
GF Value™: ₹494.86 vs. price of ₹291.10 (41.2% below fair value)
Industry Position: 683.6% above the Software median (#459 of 2890)
No single metric tells the full story. See the BOM:532400 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Birlasoft Ltd is engaged in providing software and IT-enabled services globally. It provides software development and IT consulting to its customers, which involves solutions related to artificial intelligence, blockchain, customer experience, data analytics, cybersecurity, cloud, and other technologies. Its reportable segments are based on the industry vertical it serves and consist of Manufacturing, which is its key revenue-generating segment, Banking, Financial Services and Insurance (BFSI), Energy and Utilities, and Life Sciences. Geographically, the company generates maximum revenue from America and the rest from the UK and Europe, and the Rest of the World.
80GF Score
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