Birlasoft Share Price Drops 4% After Q4 Results; Stock Down 33% in One Year

Market Performance

The Birlasoft share price fell sharply on May 30, sliding over 4% in early trade. As of 9:40 AM, the stock was trading at ₹404.05 on the NSE, reflecting investor disappointment following the company's Q4 FY25 earnings.

This marks a significant decline over the past year, with Birlasoft shares down 33%, underperforming the Nifty 50, which gained 10.5% during the same period.

Main News

The fourth-quarter results failed to excite the market, triggering a sharp drop in the Birlasoft share price. While there was a modest increase in net profit, a decline in revenue and operating margins raised concerns.

Here's a quick breakdown of Birla Soft's Q4 FY25 financial performance:

Revenue

• ₹1,317 Crore, down 3.4% YoY
• Previous year: ₹1,362.55 Crore

EBITDA

• ₹173.5 Crore, down 21.7% YoY
• Previous year: ₹221.5 Crore

EBITDA Margins

• Dropped to 13.18% from 16.26%

Net Profit

• ₹122 Crore, up 4.3% YoY
• Previous year: ₹117 Crore

Company Details

Despite the muted quarterly performance, the company emphasized stability in a challenging macro environment. According to CEO and Managing Director Angan Guha, FY25 revenue increased by 1.8% over the previous year.

He also noted a sequential increase in deal wins, with a total contract value of $236 million in the latest quarter, highlighting strong business momentum. Additionally, Birlasoft has continued to invest in emerging technologies, such as GenAI, positioning itself for long-term growth.

The board has proposed a final dividend of ₹4 per share for FY25, pending shareholder approval at the upcoming Annual General Meeting (AGM).

Summary

• Birlasoft share price dropped 4% following weaker-than-expected Q4 results.
• Revenue and EBITDA saw notable YoY declines.
• Margins contracted sharply, raising concerns among investors.
• Net profit saw a modest rise of 4.3%.
• The stock has declined 33% over the past year, significantly underperforming the broader market.

The recent earnings report has added pressure on the Birlasoft share price, reflecting cautious investor sentiment amid subdued financial performance.