BirlasoftNSE:BSOFT -0.64%82 ROE % is 17.11% as of Mar. 2026, which is 8% above its 10-year median of 15.81. GuruFocus rates NSE:BSOFT with a GF Score™ of 82/100 and a GF Value™ of ₹494.06 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,675 Software companies, Birlasoft ranks better than 71.14% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Birlasoft's annualized net income for the quarter that ended in Mar. 2026 was ₹7,037 Mil. Birlasoft's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹41,131 Mil. Therefore, Birlasoft's annualized ROE % for the quarter that ended in Mar. 2026 was 17.11%.
The historical rank and industry rank for Birlasoft's ROE % or its related term are showing as below:
NSE:BSOFT'
s ROE % Range Over the Past 10 Years
Min: 12.44 Med: 15.81 Max: 22.71
Current: 13.77
During the past 13 years, Birlasoft's highest ROE % was 22.71%. The lowest was 12.44%. And the median was 15.81%.
NSE:BSOFT's ROE % is ranked better than 71.14% of 2675
companies
in the Software industry
Industry Median: 4.69
vs NSE:BSOFT: 13.77
Birlasoft (NSE:BSOFT) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Birlasoft ROE % Related Terms
Birlasoft ROE % Historical Data
* Premium members only.
The historical data trend for Birlasoft's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, Birlasoft's ROE % distribution charts can be found below:
* The bar in red indicates where Birlasoft's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Birlasoft (NSE:BSOFT) has a ROE % of 17.11% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Birlasoft and its competitors. This is near median its historical median of 15.81. Over the past decade, Birlasoft's ROE % has ranged from 12.44 to 22.71. According to the industry distribution chart, Birlasoft ranks #772 out of 2675 companies in the Software industry, placing it in the top 28.9%.
Is Birlasoft's ROE % too high?
Birlasoft's current ROE % of 17.11% is near median its 10-year median of 15.81. Over the past 10 years, this metric has ranged from a low of 12.44 to a high of 22.71. The Software industry median ROE % is 4.69. Birlasoft's value of 17.11% is 264.8% above this industry median. Based on the distribution chart, Birlasoft ranks #772 out of 2675 companies in the Software industry, which is above the industry midpoint. Overall, Birlasoft has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Birlasoft's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Birlasoft ranks #772 out of 2675 companies for ROE %. This puts Birlasoft in the upper half of its industry. The industry median ROE % is 4.69. Birlasoft's value of 17.11% is 264.8% above this benchmark. Historically, Birlasoft's own ROE % has ranged from 12.44 to 22.71 over the past decade. While the company's 10-year median is 15.81 vs. the industry median of 4.69, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.69, based on 2,675 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Birlasoft's current ROE % of 17.11% is 264.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Birlasoft and its competitors. For the Software industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Birlasoft's current ROE % is 17.11%, which is near median its own 10-year median of 15.81. 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 (NSE:BSOFT) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹494.06, compared to a current price of ₹280.75 — trading 43.2% below its estimated fair value. The current ROE % is 17.11%, which is near median its 10-year median of 15.81 and 264.8% above the Software industry median of 4.69. Birlasoft's overall GF Score™ is 82/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Birlasoft (NSE:BSOFT), the current ROE % is 17.11% 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 (NSE:BSOFT) Overvalued in 2026?
Based on GuruFocus' analysis, Birlasoft stock appears to be undervalued.
The current stock price of ₹280.75 is trading 43.2% below its estimated GF Value™ of ₹494.06.
GuruFocus considers Birlasoft to be Significantly Undervalued.
Key valuation signals for NSE:BSOFT:
ROE %: 17.11% (near median its 10-year median of 15.81)
GF Value™: ₹494.06 vs. price of ₹280.75 (43.2% below fair value)
Industry Position: 264.8% above the Software median (#772 of 2675)
No single metric tells the full story. See the NSE:BSOFT 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.
82GF Score
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