Shares of Birlasoft will be in focus after global brokerage Macquarie downgraded the stock to Underperform from Outperform, citing broad-based revenue decline and weaker margin outlook. The brokerage also sharply cut its target price to ₹350 from ₹640. The stock last closed at ₹420.70.
Birlasoft reported a continued revenue decline in Q4FY25, with topline falling 5.3% quarter-on-quarter and 7.1% year-on-year. According to Macquarie, the revenue weakness was broad-based across both verticals and client segments, indicating systemic challenges.
The brokerage highlighted that it had previously expected margin expansion from an offshore shift, but now believes such an improvement looks unlikely. Reflecting the weaker revenue projections, Macquarie has cut its FY26E/FY27E EPS estimates by 30% and 28%, respectively.
The sharp earnings downgrade and cautious margin outlook led Macquarie to revise its stance on the stock, despite Birlasoft still trading well above the new target price.
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