Birlasoft Limited (NSE:BSOFT) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Shareholders might have noticed that Birlasoft Limited (NSE:BSOFT) filed its annual result this time last week. The early response was not positive, with shares down 5.7% to ₹401 in the past week. Results were roughly in line with estimates, with revenues of ₹54b and statutory earnings per share of ₹18.48. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Birlasoft's 13 analysts are forecasting 2026 revenues to be ₹54.7b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 5.6% to ₹19.65. Before this earnings report, the analysts had been forecasting revenues of ₹57.7b and earnings per share (EPS) of ₹21.51 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

View our latest analysis for Birlasoft

The consensus price target fell 13% to ₹449, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Birlasoft, with the most bullish analyst valuing it at ₹670 and the most bearish at ₹342 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Birlasoft's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Birlasoft.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Birlasoft's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Birlasoft analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Birlasoft that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.