Birlasoft share price rallies 11% on huge volume post Q2 results

Birlasoft said margin performance has been strong, considering the organization-wide compensation increase rolled out during the quarter and the ongoing investments in sales and domain capabilities.

Birlasoft share price movement

 

Share price of Birlasoft surged 11 per cent to ₹341.20 on the BSE in Thursday’s intraday deals amid heavy volume due to improved sequential earnings for the quarter ended September 2026 (Q2FY27).

 

At 09:37 AM, Birlasoft quoted 10 per cent higher at ₹336.70, compared to 0.23 per cent rise in the BSE Sensex. A combined 7.07 million shares changed hands on the NSE and BSE in first 22 minutes of trade. 

 

The stock hit a 52-week low of ₹267.05 on October 1, 2026 and it touched a 52-week high of ₹473.75 on February 11, 2026.

 

Birlasoft – Q2 results

 

Birlasoft reported revenue of $148.3 million (₹1,416.2 crore), up 2.1 per cent quarter-on-quarter (QoQ)/down 1.1 per cent year-on-year (YoY) in constant currency (CC) terms in Q2FY27. 

 

 

Reported earnings before interest, tax, depreciation and amortization (EBITDA) margin stood at 15.2 per cent, down 95 bps QoQ/84 bps YoY, as wage hikes and continued investments in sales and service line capabilities were only partly offset by operational efficiencies, according to ICICI Securities.

 

Reported profit after tax stood at ₹159.6 crore, down 0.8 per cent QoQ/up 37.5 per cent YoY. Total contract value (TCV) for the quarter stood at $116 million, down 31.4 per cent QoQ/up 8 per cent YoY, including new deal wins of US$47 million (41 per cent of TCV).  H1FY27 TCV grew 15 per cent YoY to $285 million, although quarterly order booking remained below management expectations.

 

While near-term performance would reflect both macro conditions and usual seasonality, the management said the company remains committed to making investments in sales and domain capabilities with an eye on driving future growth.

 

Margin performance has been strong, considering the organization-wide compensation increase rolled out during the quarter and the ongoing investments in sales and domain capabilities, with EBITDA margin at 15.2 per cent, the management said. 

Brokerages view on Birlasoft

 

Birlasoft’s QoQ revenue recovery provides limited comfort, with revenue still declining 1.1 per cent YoY CC and quarterly TCV falling 31.4 per cent QoQ, highlighting continued weakness in demand conversion.

 

Management acknowledged that order bookings fell short of expectations, with some deals pushed to Q3/Q4, while the pipeline remains steady rather than materially improving. Although H1FY27 deal signings grew 15 per cent YoY and AI-led engagements offer a potential growth lever, these wins are yet to translate into a sustained improvement in the revenue trajectory, ICICI Securities said in a note.

 

Energy & Utilities (E&U) remains weak, with no near-term recovery expected, while Q3 is likely to face seasonal furloughs. Management expects H2 performance to improve over H1, however, without stronger order bookings and conversion, growth visibility remains weak. Overall, the brokerage firm remains cautious given the subdued demand environment, weak quarterly deal momentum and limited near-term margin expansion potential.

 

Meanwhile, according to Sachin Gupta, VP-Research at Choice Broking, Birlasoft is showing signs of a possible trend reversal after finding support in the ₹266–270 zone, near the lower Bollinger Band. Gupta believes that a sustained move above ₹330 could open the way towards ₹360–₹400. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.