Birlasoft shares fell nearly 4% after global brokerage Macquarie downgraded the stock from Outperform to Underperform, citing a broad-based revenue decline and a weaker margin outlook. The brokerage also slashed its target price sharply from ₹640 to ₹350. Birlasoft last closed at ₹420.70, still significantly above the revised target.
In its Q4FY25 results, Birlasoft reported a 5.3% quarter-on-quarter and 7.1% year-on-year revenue decline. Macquarie noted the weakness was visible across all business verticals and client segments, suggesting systemic challenges within the company’s operations.
Macquarie had earlier expected margin improvements from a strategic shift towards offshore delivery. However, it now believes such gains are unlikely in the near term. Reflecting this change in outlook, the brokerage has cut its EPS estimates for FY26 and FY27 by 30% and 28%, respectively.
Birlasoft shares opened at ₹412.00, and, at the time of writing, reached the same mark for the day’s high, while dipping to a low of ₹401.10. The stock remains well below its 52-week high of ₹760.45, but still above the 52-week low of ₹331.00.
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