Global Economy
During the year under review, the global economy faced a challenging landscape influenced by various economic, geopolitical, and policy-related factors. The World Economic Outlook, by the International Monetary Fund (IMF), reported that for the Calendar Year (CY) 2024, global Gross Domestic Product (GDP) growth eased to 3.3%. Growth patterns differed significantly; developed economies showed a slower pace of expansion, whereas emerging markets, especially those in Asia, maintained a relatively stronger growth trajectory.
(Source: World Economic Outlook (IMF), Reuters)
Geopolitical factors, including the ongoing Russia-Ukraine conflict, disruptions in the Red Sea, persistent supply chain issues, and trade tensions between major economic powers continued to present challenges to global economic stability during the past year. Moreover, the evolving landscape of climate change policies and regulations influenced investment choices across various industries.
Despite these obstacles, during the Calendar Year 2024, the United States economy showed resilience, achieving 2.8% growth driven by a strengthened labour market and moderating inflation. The Eurozone, however, experienced slower growth at 0.9%, including a slight contraction in Germany. Emerging markets, particularly in Asia, maintained stronger growth momentum, reaching 4.3% growth overall, fuelled by investments in technology and infrastructure. Chinas economy grew by 5.0%, supported by government policies and a recovering property sector.
Global inflation is showing improvement, estimated at 5.7% in CY 2024, down from 6.6% in CY 2023. Advanced economies are likely to achieve their inflation targets sooner than emerging markets and developing economies, where the decline may be more gradual. Advanced economies should see inflation average 2.6% in CY 2024, likely reaching target levels by late CY 2025. Emerging markets will experience a slower but still positive trend.
Major central banks have implemented interest rate reductions to address economic challenges and stimulate growth. December 2024 marked the most substantial wave of rate cuts among G10 central banks since the pandemic, totalling 825 basis points for the year, reflecting an aggressive easing cycle not seen since 2009.
Global Economy Outlook
The global economy is projected to grow, with anticipated GDP growth rates of 2.8% and 3.0% in CY 2025 and CY 2026, respectively as per World Economic Outlook, IMF. This is based on economic expansion in the United States and across some major emerging markets.
Growth in the US is expected to decelerate to 1.8% in CY 2025 and 1.7% in CY 2026, driven by shifts in labour market dynamics and a reduction in consumer spending. The Eurozone is forecast to experience a recovery, with growth reaching 0.8% in CY 2025 and further improving to 1.2% in CY 2026, supported by increased consumer expenditure and reduced inflation.
Although global disinflation continues, certain regions are experiencing stagnation due to persistently high inflation rates. Global inflation is forecast to decrease to 4.3% in CY 2025 and 3.6% in CY 2026, with developed economies expected to achieve their targets before others. Monetary policies are likely to remain varied across different regions.
Indian Economy
Indias economy displayed resilience and consistent growth throughout FY 2024-25, continuing its status as one of the worlds fastest-expanding major economies. As indicated by the Second Advanced Estimate (SAE) data released by the National Statistical Office (NSO), real Gross Domestic Product (GDP) is estimated to be 6.5% for the FY 2024-25, following a notable 9.2% (per the First Revised Estimates) growth in the previous financial year, as depicted in the following chart.
This sustained momentum is a reflection of the nations sound economic foundations, supportive government policies, an expanding services sector, and strong domestic demand, all of which contribute to increased confidence in Indias long-term growth potential.
Government reforms, substantial investments in both physical and digital infrastructure, and initiatives like Make in India and the Production-Linked Incentive (PLI) scheme have played a crucial role in improving the countrys growth path and encouraging self-sufficiency.
The services sector sustained steady growth at 7.2% in the FY 2024-25, propelled by strong activity across a range of segments, including finance, real estate, professional services, public administration, defence, and other related areas.
Indias economic standing continues to ascend, now holding the position of the worlds fourth-largest economy by nominal Gross Domestic Product (GDP) and the third-largest by Purchasing Power Parity (PPP). Ambitious national objectives are set to achieve a
$ 5 trillion economy by FY 2027-28 and a $ 30 trillion economy by 2047. These targets are to be realised through investments in infrastructure, ongoing reforms, and widespread adoption of technology. The capital investment budget for FY 2025-26 demonstrates this commitment, increasing to Rs.11.21 lakh crores, representing 3.1% of GDP.
Outlook - Indian Economy
Indias economy is projected to expand by 6.2% in FY 2025-26. By 2030, India is expected to become the worlds third-largest economy, propelled by infrastructure investment, private capital expenditure, and the expansion of financial services. Continuous reforms are anticipated to underpin this long-term growth aspiration.
This optimistic outlook is reinforced by Indias demographic advantages, increased capital investment, proactive government policies, and strong consumer demand. Improved rural consumption, driven by moderating inflation, further strengthens this growth trajectory. The governments emphasis on capital expenditure, fiscal responsibility, and increasing business and consumer confidence supports both investment and consumption.
Initiatives such as Make in India 2.0, Ease of Doing Business reforms, and the Production-Linked Incentive (PLI) scheme are designed to promote infrastructure, manufacturing, and exports, positioning India as a global manufacturing centre. With inflation expected to align with targets by 2025, a more accommodating monetary policy is anticipated. Infrastructure development and public policies will drive capital formation, while rural demand will be supported by initiatives such as the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
The Union Budget 2025-26 introduces a balanced, growth-oriented strategy that enhances disposable income, prioritises infrastructure, and promotes domestic manufacturing. A key feature is the increased income tax exemption limit of Rs.12 lakh per annum, boosting disposable income for middle-class households, which is expected to stimulate consumer spending. Significant investments in infrastructure aim to improve connectivity and create jobs.
(Source: World Economic Outlook (IMF), PIB)
Industry Overview Indian IT Services Industry
The Indian tech sector is rapidly evolving into a global hub for technology and innovation, as evidenced by the increasing share of Multinational Corporations (MNCs) and Global Capability Centres (GCCs), which now account for nearly 50% of the total tech sector revenues in the country. Over the past five years, the number of GCCs in India has surged from over 1,285+ in FY 19 to more than 1,750 in FY 25, employing over 1.9 million professionals. This growth underscores Indias innovation capabilities, as many MNCs and GCCs have established their largest engineering teams in the country to support next-generation technology advancements.
Changing structure of the Indian tech industry
Industry exports composition by type of companies % Share
As of FY 25, the Indian technology industry is set to surpass the $ 280 billion mark in revenue. This significant milestone reflects the sectors significant growth trajectory and its increasing importance in the global technology landscape. The industry is not only expanding in terms of revenue but also in workforce.
Indias technology revenue is projected to grow by 5.1% in FY 25, rising from $ 268.8 billion in FY 24 to $ 282.6 billion. This growth encompasses various sectors, including IT services, Business Process Management (BPM), software products, Engineering Research and Development (ER&D), and hardware. The direct employment in the industry is expected to reach 5.8 million, reflecting a net addition of 126,000 jobs over FY 24, which is 1.4 times higher than the previous years lowest addition.
Furthermore, exports from the industry are anticipated to exceed $ 224 billion, marking an increase of $ 10 billion and a growth rate of 4.6% compared to FY 24. This performance highlights Indias strategic position in the global tech landscape and its potential for continued growth and innovation in the coming years.
A dynamic mix of deals is driving growth and consolidation, with cybersecurity and cloud services leading the way. In CY 24, IT services deals saw an uptick in demand for emerging technologies across key sectors with NASSCOM estimating that the Banking, Financial Services, and Insurance (BFSI) sector accounted for 14.3% of deals, followed by Retail at 15.8% and Healthcare at 9.1%. Emerging technologies such as cloud services, cybersecurity, data engineering, and AI/Generative AI witnessed growth, underscoring focus on innovation and efficiency.
IT services deals in CY 24 saw an uptick in demand for emerging technologies
Cloud services witnessed growth driven by increased adoption of scalable, resilient applications and enhanced speed-to-market. Cybersecurity also saw an uptick, reflecting the growing importance of safeguarding digital assets. Additionally, data engineering services are becoming increasingly critical, particularly in BFSI and healthcare, as organisations prioritise real-time insights and advanced analytics to improve decision-making and operational efficiency.
Indias position as a global hub for technology innovation is reinforced by its advancements in AI/Generative AI and its leadership in developing cutting-edge cybersecurity solutions. These trends highlight the IT sectors resilience and its pivotal role in shaping the future of technology on a global scale.
Industry Outlook
The technology sector is expected to see some improvement in spending during the course of FY 26, bringing it in line with initial projections for FY 25. This is reflected in NASSCOMs Annual Tech Services CXO Survey 2025, which polled over 100 technology service providers, including IT services, BPM, ER&D, and software product companies. The survey reveals a generally positive outlook regarding client demand, AI investment, and overall growth.
A substantial 77% of these providers expect business growth to increase in FY 26. This growth is anticipated to stem from the expansion of foundational digital services, the development of emerging markets, and the strategic deployment of AI-driven solutions.
However, expectations for enterprise (client) technology budgets are more tempered for FY 26. Only 40% of providers predict an increase in client budgets, while 45% expect budgets to remain at levels comparable to the previous year.
Hiring projections for FY 26 are also modest. 45% of providers anticipate an increase in hiring, primarily at entry-level positions. This is likely to facilitate the upskilling of new employees in AI-related roles. Additionally, there is expected to be an increase in demand for data and cloud-related job roles, as well as the creation of specialised AI management positions, such as AI model validation or reinforcement trainers.
The industry anticipates that several factors will influence client technology spending in FY 26. Notably, AI-led service transformations are expected to be a primary driver of change, alongside macroeconomic constraints on discretionary spending and geopolitical uncertainties. Providers are preparing to navigate these diverse challenges by maintaining flexibility and responsiveness to both external and internal pressures. Recent uncertainty emanating from protectionist measures such as higher tariffs too could affect some of the industry verticals that the Indian IT services industry serves, creating cautiousness among customers and clients with regard to their investment and spending programmes.
Company Overview
Birlasoft Limited has grown into a leading global provider of IT services and solutions, driving digital and business transformation across industries. Since its establishment in 1990, the Company has built a strong reputation for innovation and expertise, and it delivers cutting-edge technological solutions that reshape business operations and enhance enterprise efficiency.
Birlasofts services span multiple industries, including Manufacturing, Banking, Financial Services & Insurance (BFSI), Life Sciences & Services (LSS), and Energy & Utilities (E&U). The Company differentiates itself by offering holistic, end-to-end solutions encompassing Data & Analytics, Digital, and Cloud services, Enterprise Resource Planning (ERP), and Infrastructure Management Services (IMS). With a strong focus on emerging technologies such as AI/GenAI, Birlasoft helps businesses stay ahead in an evolving digital landscape.
As part of the multibillion-dollar CKA Birla Group with presence in diverse sectors including technology, automotive, home and building and healthcare, Birlasoft benefits from the groups vast resources and global presence. The CKA Birla Group is recognised for its commitment to long-term value creation, fostering strategic partnerships, and driving positive social impact through its business endeavours.
The Company has carved out a prominent place in the Indian IT services sector, strengthening its global reach across North America, Europe, and the Asia-Pacific over the years. The Company employs a structured delivery model, leveraging innovative service frameworks and tailored solutions to meet the evolving needs of its clients. Its proactive approach to market trends enables it to deliver superior value and maintain its competitive edge.
The Companys strategic direction is centred on expanding its domain-specific technology capabilities, reinforcing its industry-focused service offerings, and fostering a culture of continuous innovation. By capitalising on leading technology platforms such as SAP, Oracle, J.D. Edwards, Microsoft, Amazon Web Services (AWS), Google Cloud, Salesforce.com, and ServiceNow, Birlasoft has built a comprehensive client portfolio that includes major global enterprises.
Focusing on scalability and efficiency, Birlasoft has refined its customer base to prioritise high-growth potential accounts, leading to an optimised and dynamic client portfolio. As of FY 2024-25, its active client count reflects a well-calibrated approach to customer engagement and business sustainability. Furthermore, the Company has deepened its expertise in next-generation technologies such as Digital Transformation, Machine Learning, and Generative AI (GenAI), reinforcing its commitment to staying at the forefront of digital transformation. By continuously advancing its delivery capabilities and embracing emerging trends, Birlasoft maintains strong, enduring relationships with its valued clients worldwide.
About The CKA Birla Group
The CKA Birla Group is an Indian multinational conglomerate with a multibillion dollar revenue. With over 35,000 employees, the group operates more than 50 manufacturing facilities across India and the world, with a presence in diverse sectors including technology, automotive, home and building and healthcare.
The CKA Birla Group continuously adapts to stay ahead in a changing world. By harnessing technology and investing in people and digital transformation, the Group consistently remains agile and delivers profitable growth. Viewing value creation through a global lens, our companies operate without borders.
The CKA Birla Group companies include Birlasoft, GMMCO, National Engineering Industries (manufacturer of NBC Bearings), BirlaNu (formerly HIL), Orient Electric, CK Birla Healthcare (CK Birla Hospitals and Birla Fertility & IVF), Orient Paper, AVTEC and Neosym.
Our companies share a common purpose of serving customers, partners and communities to create long term value through trust based relationships.
Our commitment to our community
The CKA Birla Group is also known for its deep-rooted commitment to community with institutions like BIT Mesra, Modern High Schools, BM Birla Science Centre, and The CMRI Trust Hospitals, serving millions and nurturing generations of talent.
Operational Highlights
Birlasoft maintains a strong presence across multiple competencies while investing in future growth. Through the course of the past year, Birlasoft continued to make the investments necessary towards ensuring that it enjoys a well-differentiated spectrum of tech and domain capabilities while also expanding its footprint in high potential markets where it has traditionally had a much smaller footprint. This in turn is key to retaining customers, winning more deals, and improving the quality of revenues. The quantum of deal wins during the year under review, with total deals TCV worth $ 758 million secured, demonstrates the Companys ability to successfully compete even while navigating a challenging demand condition amidst global macro-economic headwinds.
The Companys investments aim to bridge capability gaps and scale existing competencies that are relevant in the marketplace. In terms of its technology capability roadmap, the Company is focusing on AI/GenAI, AI-driven quality assurance services, data, and product and app engineering.
During the year under review, Birlasoft launched its "AI for All" initiative, which envisions integrating Agentic AI solutions into all phases of software engineering. This initiative enhances human capabilities, optimises processes, improves decision-making, accelerates time to market, and builds cost-effective solutions. This builds on the Companys past successes as an early mover in this space, having established an Open AI Centre of Excellence in collaboration with Microsoft in the previous financial year, and re-skilling most employees on GenAI.
Birlasoft has also made significant strides in cloud technologies and services, strengthening its cloud-first foundation. This year, the Company attained AWS Migration Consulting Competency, highlighting its expertise in assisting enterprise customers with migrating applications and legacy infrastructure to AWS. This is evident through successful client solutions across various industries. As an AWS Advanced Tier Services Partner, Birlasoft has demonstrated extensive technical proficiency and excellence in professional services, guiding businesses through every stage of migration on AWS.
Later in the year, Birlasoft achieved AWS Competency in Manufacturing and Industrial Consulting. Additionally, it recently received Oracle Cloud Solutions Provider Expertise, showcasing its capabilities in managing and implementing Oracle Cloud Services to deliver value to customers worldwide in their cloud transformation journeys.
Financial Overview
Financial Performance
(in Rs.million)
Particulars |
FY 2024-25 | FY 2023-24 |
| Revenue from Operations | 53,752 | 52,781 |
| Employee benefits expense | 32,008 | 30,483 |
| Other expenses | 14,770 | 13,936 |
| Total expenses | 46,778 | 44,419 |
| Earnings before interest, tax, depreciation & amortization (EBITDA) | 6,974 | 8,362 |
| Depreciation and amortization expense | 857 | 850 |
| Earnings before interest & tax | 6,117 | 7,512 |
| Other income (Net) | 1,085 | 1,035 |
| Finance costs | 234 | 199 |
| Profit Before Tax (PBT) from continuing operations | 6,968 | 8,348 |
| Tax expense | 1,801 | 2,110 |
| Profit After Tax (PAT) | 5,168 | 6,238 |
For the year under review, Birlasoft has reported consolidated revenues of Rs.53,752 million, representing a growth of 1.8% over the preceding financial year. In dollar terms, consolidated revenue stood at $ 635.4 million, reflecting a marginal degrowth of about 0.3%. This steady revenue performance was achieved in the face of a challenging demand environment owing to sustained macroeconomic headwinds that resulted in some project ramp-downs or closures as well as reduced discretionary spending by some customers. At the same time, the Company has been able to maintain its long-standing relationships with its key customers and contribution from its top 5, 10, and 20 customers during the year was 37.1%, 52.0%, and 65.2% respectively to overall consolidated revenue.
During the course of the year under review, the Company made significant investments in its business, successfully secured some consolidation deals that required pricing flexibility, and also grew its Infrastructure services business that tends to have lower margins in initial stages. This has had a tempering effect on EBITDA for the year. Consolidated EBITDA for the year was Rs.6,974 million, implying an EBITDA margin of 13.0%. As a result, Birlasoft has reported a drop in Profit After Taxes (PAT) over the preceding year, when it also had the benefit of a one-time insurance claim. For the year under review, PAT has been Rs.5,168 million.
From FY 2024-25 onwards, the Company has realigned its reporting on service lines in a manner that better reflects how it is driving its business. Accordingly, the service lines have now been organized as Digital & Data, ERP, and Infrastructure services.
Growth during the year was led by BFSI and E&U among verticals and by Infrastructure and Digital & Data among service lines. In dollar terms, the BFSI vertical grew by 13.5% during the year under review while the E&U grew by 12.6%. The Manufacturing and Lifesciences verticals witnessed some decline, reflecting some project ramp-downs on account of project closures or insourcing. Among service lines, the Companys Digital & Data business recorded a growth of 0.8% over the preceding financial year, while Infrastructure grew by 19.1%. The ERP business de-grew during the year under review, reflecting the softness in verticals such as Manufacturing where much of this service lines revenues come from.
Among geographies, the Americas registered a growth over the preceding financial year, with its contribution to overall revenue rising from 85.5% in FY 2023-24 to 86.5% in FY 2024-25. The Rest of the World (ROW) region, however, experienced a decline in its contribution from 14.5% to 13.5%, indicating a relatively weaker revenue performance compared to the Americas. The Company has been making investments in the ROW region, with a new leadership and front-end team that was onboarded in the previous year, and this region is expected to deliver progressive performance going forward.
Birlasofts balance sheet remains strong, and it continued to enjoy among the best Days of Sales Outstanding (DSO) metrics in the industry at 54 days during the year, reflecting its ability to consistently generate strong cash flows. Consequently, consolidated cash & cash equivalents including investments rose to Rs.22,177 million by the end of FY 25, an increase of almost 27.1% year-on-year.
Analysis of Consolidated Profit and Loss Statement
Revenue
The Companys consolidated revenue for the financial year under review (FY 2024-25) stood at Rs.53,752 million, compared to
Rs.52,781 million in the preceding year, registering a growth of 1.8%. This growth was achieved even as the Company navigated through tempered customer spends and some project ramp-downs resulting in revenue headwinds. This demonstrates the Companys resilience in the face of a soft demand environment and its ability to execute on opportunities despite macro- economic uncertainty. Additionally, the Companys Other Income (net) grew from Rs.1,035 million in FY 2023-24 to Rs.1,085 million in FY 2024-25. This increase in Other Income is on account of higher income from investments.
Expenses
Total expenses of the Company increased by 5.3%, from Rs.44,419 million in FY 2023-24 to Rs.46,778 million in FY 2024-25. This rise was driven primarily by higher employee benefit expenses, reflecting compensation revisions and promotions rolled out to employees both in India and other global locations as well as investments in technology and domain talent during the year. Employee benefit expenses increased by 5.0% during the year, rising from Rs.30,483 million in the previous year to Rs.32,008 million in FY 2024-25. Other expenses grew from Rs.13,936 million in FY 2023-24 to Rs.14,770 million in FY 2024-25, marking an increase of 6.0%.
Tax Expenses
The Companys Tax Expenses for FY 2024-25 were lower at
Rs.1,801 million, which constituted 25.8% of the Profit Before Tax (PBT), compared to Rs.2,110 million in FY 2023-24. The effective tax rate has been similar to the preceding year (when it was 25.3%).
Analysis of Balance Sheet
Sources of Funds
The Companys balance sheet size stood at Rs.44,624 million on March 31, 2025, compared to Rs.39,256 million on March 31, 2024. The net worth of the Company increased from Rs.30,441 million as of March 31, 2024, to Rs.34,782 million as of March 31, 2025. The equity share capital of the Company, comprising 277,877,193 equity shares of Rs.2 each, increased from Rs.552 million at the end of FY 2023-24 to Rs.556 million by the end of FY 2024-25, reflecting allotment of shares under the Companys employee stock option plans. Other financial liabilities decreased by 18.4% year-on-year, from Rs.2,117 million in the previous year toRs.1,728 million in FY 2024-25, due to lower accrued employee costs.
Application of Funds
The Companys Property, Plant and Equipment (including capital work in progress) decreased to Rs.1,019 million in FY 2024-25 from
Rs.1,164 million at the end of FY 2023-24.
Working Capital Management
The Companys Current Investments increased from Rs.10,336 million as of March 31, 2024 to Rs.14,571 million as of March 31, 2025. Trade receivables (billed) rose by 3.0%, from Rs.7,677 million as of March 31, 2024, to Rs.7,907 million as of March 31, 2025. Reflecting continued strong collections, billed Days Sales Outstanding (DSO) slightly improved from 55 days in FY 2023-24 to 54 days in FY 2024-25 and continue to be among the best in class.
Bank balances and deposits with banks increased from Rs.4,249 million as of March 31, 2024, to Rs.4,449 million as of March 31, 2025, on account of increase in deposits with maturity of less than 12 months. Other financial current assets of the Company increased from Rs.29 million as of March 31, 2024, to Rs.67 million as of March 31, 2025, significantly on account of payment of security deposits for new lease premises. The Companys Other Current Assets were lower by 8.8%, from Rs.2,695 million as of March 31, 2024, to Rs.2,458 million as of March 31, 2025, due to reduction in contract assets.
Key Financial Ratios |
||
Particulars |
FY 2024-25 | FY 2023-24 |
| EBITDA Margin (%) | 13.0% | 15.8% |
| Operating/EBIT Margin (%) | 11.4% | 14.2% |
| Net Profit Margin (%) | 9.6% | 11.8% |
| Return on Equity (ROE) (%) | 15.6% | 22.2% |
| Return on Capital Employed | 18.0% | 25.7% |
| (ROCE) (%) | ||
| Days Sales Outstanding - Billed | 54 | 55 |
Business Outlook
The year under review has been marked by increased macroeconomic uncertainty, exacerbated by recent developments and still evolving uncertainties around tariffs and international trade. As a result, the demand environment remains challenging with several large spenders on IT continuing to focus more on cost takeouts and efficiency optimization engagements than large transformational programmes. Some of the sectors where the Company derives a significant share of its revenue from, such as Manufacturing or Med Tech, have been under pressure and that is likely to have an impact on overall performance during the coming financial year.
Technology, however, remains one of the most important tools available for enterprises across the world to innovate and create better services and products, become more competitive, deliver superior experiences to end-customers, enhance efficiencies, and drive transformational initiatives. Global enterprises will therefore continue to spend on technology and IT services. IT services providers that can offer expertise and solutions relevant to customer needs should be able to outperform the industry in the long term.
Birlasoft, through its specialisation in its verticals and sub-verticals of focus and through its continued emphasis on capability-augmentation and strategic partnerships within the tech ecosystem, is well-placed to deliver technology transformation and capitalise upon a recovery in demand.
The Companys proactive deal pipeline remains strong, and it did witness an uptick in deal flow during the second-half of the financial year under review. As customer decision-making picks up in sync with an upturn in the macroeconomic situation, order booking should improve further, resulting in healthy revenue performance.
Risks and Opportunities Risk Management
The Company encounters a range of risks and fluctuations in the external operating landscape. It functions within a highly competitive sphere and is influenced by both beneficial and detrimental macroeconomic factors. Challenges include restricted pricing flexibility due to intense competition from major players within the global IT sector. Moreover, issues such as fluctuations in foreign currency, difficulties in attracting and retaining talent, and macroeconomic pressures in significant markets like the US and Europe continue to present challenges. The increased interest rates and extended decision-making periods of customers further complicate matters. Additionally, any notable regulatory obstacles could affect the Companys operations.
Birlasoft recognises that proficient risk management is vital for achieving its strategic goals and is an essential component of its business activities. The Company adopts a systematic and cohesive strategy for risk evaluation and mitigation, aligned with standard Governance, Risks, and Compliance (GRC) protocols. It regularly employs analytical techniques to assess and manage risks across various tiers within the organisation, including business units, geographical areas, delivery functions, and ancillary activities. The Company is firmly committed to transparency with its stakeholders, as demonstrated by its disclosures regarding significant risks and the associated mitigation strategies.
For a detailed discussion on risks and the mitigation plan, please refer to the section on Enterprise Risk Management.
Opportunities
The Indian Technological Industry stands at a pivotal juncture, presented with significant potential for expansion and value creation in the coming years. Several converging factors create a dynamic environment ripe for development and innovation.
Accelerating Digital Transformation: The imperative for digital adoption across all sectors of the Indian economy continues unabated. Businesses, from large enterprises to small and medium-sized entities, are increasingly integrating digital technologies to enhance efficiency, customer experience, and competitiveness. This presents an unprecedented scope for technology service providers in areas such as cloud migration, data analytics, process automation, and Customer Relationship Management (CRM) systems. The financial services (BFSI), retail, manufacturing, and healthcare sectors, in particular, represent substantial avenues for growth.
Advancement in Next-Generation Technologies: India is rapidly becoming a centre for cutting-edge technological development and adoption.
• Artificial Intelligence (AI) & Machine Learning (ML):
Opportunities abound in developing AI-driven solutions for diverse applications, including predictive analytics, natural language processing, computer vision, and personalised services across industries.
• Cloud Computing:The migration to cloud platforms (public, private, and hybrid) continues its upward trajectory, creating demand for cloud infrastructure management, application modernisation, and cloud-native development services.
• Cybersecurity: With the increasing sophistication of cyber threats, there is a critical and growing need for advanced cybersecurity solutions and services to protect digital assets and infrastructure.
• Internet of Things (IoT) & Edge Computing: The proliferation of connected devices and the need for real-time data processing are opening up new possibilities in industrial IoT, smart cities, connected vehicles, and consumer electronics.
• 5G Technology: The ongoing rollout of 5G networks will unlock transformative potential across various sectors, demanding innovative applications and services that leverage high-speed, low-latency connectivity.
Expanding Domestic Market: Indias large and rapidly digitising population presents a vast domestic market. Increasing internet penetration, widespread smartphone adoption, a burgeoning e-commerce landscape, and a world-leading digital payments ecosystem create fertile ground for consumer technology products, digital content, fintech innovations, and platform-based services tailored to Indian consumers.
Supportive Government Initiatives: Government programmes such as Digital India, Make in India, the Smart Cities Mission, and Production Linked Incentive (PLI) schemes for electronics manufacturing are creating a conducive environment for the technology sector. These initiatives stimulate demand, encourage domestic manufacturing and innovation, and aim to improve digital infrastructure nationwide.
Global Hub for Talent and Services: India continues to be a preferred global destination for IT services, Business Process Management (BPM), and Engineering Research & Development (ER&D) due to its extensive pool of skilled technology professionals and cost advantages. The increasing establishment and expansion of Global Capability Centres (GCCs) by multinational corporations further underscore Indias position in the global technology landscape. There is a significant opportunity to move up the value chain by concentrating on complex, high-value services and software product development.
Emergence of Software Products and Platforms: While services remain dominant, there is a noticeable shift towards developing indigenous software products and digital platforms. This transition presents opportunities for Indian technology companies to create intellectual property and build scalable, high-margin businesses for both domestic and international markets.
Sustainability and Green Technology: Growing global and domestic emphasis on Environmental, Social, and Governance (ESG) factors is creating demand for technology solutions that support sustainability goals. Opportunities exist in areas like green data centres, energy efficiency solutions, supply chain transparency technologies, and climate tech.
Internal Control Systems
Birlasoft has put in place a detailed internal control framework, carefully structured to match the scale of its activities, and has been taking measures to further strengthen it. To ensure independent oversight, PricewaterhouseCoopers Private Limited (PwC) conducts internal audits according to a plan approved by the Audit Committee, which is reviewed annually. The internal audit team carries out regular audits across the organisation, including assessments of the operational efficiency of internal controls. External consultants are also engaged for specific audits or reviews when necessary. The Companys audited consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) as specified under Section 133 of the Companies Act, 2013, Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, and the Companies (Indian Accounting Standards) Amendment Rules, 2016. The Companys statutory auditors have audited the financial statements for the year ending 31 March 2025, and have issued an unqualified opinion. The Boards Report in this annual report discusses Internal Control Systems and Adequacy of Internal Financial Controls in more detail.
Human Resources
Birlasoft recognises its employees as indispensable assets and the seeds of its success, prioritising talent development and creating a collaborative and innovative workplace. The Company has implemented HR policies that promote a transparent, merit-based environment, and consistently works to maximise employee potential by aligning individual goals with organisational objectives. Regular training and engagement programmes enhance employee skills, and the Company leverages its Generative AI Centre of Excellence, in partnership with Microsoft, to train all employees in emerging technologies. As of March 31, 2025, Birlasoft employed nearly 12,000 people.
The Company saw a fairly stable level of employee attrition rate through the year, increasing marginally to 12.8% in FY 25 from 12.4% the previous year. While reflecting industry trends, this also indicates a revitalised organisation and the success of ongoing employee engagement initiatives. Birlasoft attributes its operating performance to its talented workforce, driven by employee-focused initiatives that cultivate a sense of belonging. The Companys HR strategies are designed to drive growth, enhance stakeholder value, and create a motivated workforce, with cohesive leadership unifying efforts towards achieving the Companys vision.
Innovation and excellence are pursued through structured approaches and productivity improvements. Birlasoft encourages continuous learning through upskilling and cross-skilling initiatives, supported by domain-specific offerings and technology solutions. During the year under review, the Company built upon its "Optimus" technology transformation programme that was initiated in the preceding year with a set of culture transformation initiatives aligned with its long-term strategic goals. Birlasoft launched Career Compass and SkillFolio, its AI-driven skill and talent management platform that serves as a foundation for upskilling, competency building, talent strategy, and career progression and has already bagged several industry awards including the Best HR Tech Program by Business World. The Company also prioritises diversity and inclusion, implementing initiatives to increase representation from diverse backgrounds through focused hiring and other interventions like inclusivity workshops have resulted in improvements along those metrics. Birlasoft has a robust community development program that supports environment, education for girl child and healthcare for people in underprivileged communities with programs like "Shodhan", "Disha" and "e-vidya". All these efforts have been reflected in recognitions and assessments such as being certified as a Great Place to Work? for the fourth consecutive year and as one of Indias Top 50 Best Workplaces in IT & IT-BPM 2024 by Great Place to Work?. Birlasoft was also recognized as one of the Leadership Factories™ of India 2024 by the Great Manager Institute and Top 50 companies with Great Managers by People Business.
Cautionary Statement
This Managements Discussion and Analysis contains statements describing the Companys financial and growth estimates as well as declarations of its objectives, plans, strategies, and beliefs which may be ‘forward-looking statements within the meaning of applicable laws and regulations and are based on informed judgements and estimates. These assertions are based on information currently accessible, and the Company disclaims any obligation to update them as events or circumstances warrant. Actual results may differ materially from those expressed or implied due to risks and uncertainties, including but not limited to, the level of demand in the market for the Companys services, the intense competition in the market for the types of services that it offers, market conditions that could cause the customers to lower their spending for its services, the Companys ability to create, acquire and build new businesses and to grow its existing businesses, its ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are prevalent in the industry.
Boards Report
Dear Members,
The Directors are pleased to present the 34th Annual Report on the business and operations of Birlasoft Limited, along with the Audited Standalone and Consolidated Financial Statements for the financial year ended March 31, 2025.
Summary of Financial Performance
The financial performance of Birlasoft Limited ("Birlasoft" or "the Company") for the financial year ended March 31, 2025, is summarized below: (Rs.in million)
Standalone |
Consolidated |
|||
Particulars |
FY 2024-25 | FY 2023-24 | FY 2024-25 | FY 2023-24 |
| Revenue from operations | 26,579 | 26,445 | 53,752 | 52,781 |
| Earnings Before Interest, Depreciation and Tax | 3,331 | 3,812 | 6,974 | 8,362 |
| Less: Interest | 86 | 69 | 234 | 199 |
| Less: Depreciation | 730 | 763 | 857 | 850 |
| Add: Other Income | 1,369 | 983 | 1,085 | 1,035 |
| Profit before tax | 3,884 | 3,962 | 6,968 | 8,348 |
| Less: Taxes | 899 | 975 | 1,801 | 2,110 |
| Profit for the Year | 2,985 | 2,987 | 5,168 | 6,238 |
| Other Comprehensive Income/(Loss) net of tax | (27) | 8 | 349 | 244 |
| Total Comprehensive Income for the year | 2,958 | 2,996 | 5,517 | 6,482 |
Business Performance
FY 2024-25 (FY25) has been a steady year for Birlasoft from the revenue perspective, reflecting its resilience in the face of a softened demand environment owing to sustained macroeconomic challenges.
On a consolidated basis, revenues for the year under review grew by 1.8% to Rs.53,752 million from Rs.52,781 million in the previous year (FY24). Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at Rs.6,974 million (Rs.8,362 million in FY24). Net Profit after tax stood at Rs.5,168 million (Rs.6,238 million in FY24), translating into a basic earnings per share of 18.64 for the year (Rs.22.54 in FY24).
During FY25, the Company made significant investments in its business, successfully secured some consolidation deals that required pricing flexibility, and grew its infrastructure business that initially tends to have lower margins. Over time infrastructure engagements tend to see an improvement in margins as they scale up. These factors have had a tempering effect on margin performance for the year.
On a standalone basis, revenue from operations increased by 0.5% to Rs.26,579 million in FY25 from Rs.26,445 million in FY24. Net Profit after tax stood at Rs.2,985 million (Rs.2,987 million in FY24).
During FY25, Birlasoft continued to invest in creating or scaling-up capabilities that should drive future growth. An example of that is its early adoption of emerging technologies like GenAI. The Company is also using its specialized domain expertise within each of its verticals and sub-verticals, together with its tech capabilities, to create offerings and use cases that are more relevant for customers and prospects. The Company has also been driving a cultural transformation aimed at driving greater accountability and swifter action.
On the deals front, Birlasoft secured deals amounting to a Total Contract Value ("TCV") of $ 758 million during FY25. This came on the back of a significant spike in TCV volume during the second half of the financial year, with a large deal win in the Rest of the World (ROW) region where the Company has been making investments. The Company achieved deals TCV of $ 226 million in the third quarter of FY25 and recorded a further sequential increase of 4% in total deals TCV to $ 236 million during the fourth quarter of FY25. The deals pipeline remains promising, which augurs well for the Companys future performance.
In terms of investments for future growth, the Company has been investing in its business with a focus on bridging capability gaps and scaling existing capabilities that are and will remain relevant in the marketplace. Birlasoft has been concentrating its efforts in the areas of AI/GenAI and AI-driven quality assurance services, Data, and Product & App Engineering. During the year under review, Birlasoft launched its "AI for All" initiative that envisions a future where Agentic AI solutions are seamlessly integrated into every phase of software engineering, augmenting human capabilities to optimize processes, decision making, improving time to market, and building cost effective solutions. Birlasoft has been an early mover in this apace, having established an Open AI Centre of Excellence in collaboration with Microsoft in the FY24 and since having trained or re-skilled most of its employees on GenAI. The Company has also made noticeable progress on the Cloud technologies and services front, augmenting its already strong cloud-first foundation with noticeable progress in further building up its competencies across platforms such as Azure and AWS.
The Management Discussion & Analysis (MD&A) of the Companys business, industry, and performance, appears separately in this Annual Report.
Dividend
During the year under review, the Company recommended/ declared dividend as under:
Type of Dividend |
Dividend per share (in ) | Percentage of face value | Face Value (in ) |
| (%) | |||
| Interim | 2.50 | 125% | 2 |
| Final* | 4.00 | 200% | 2 |
*Recommended by the Board of Directors at its meeting held on May 28, 2025. The payment is subject to the approval of the Members at the ensuing Annual General Meeting ("AGM") of the Company. The Record Date for determining the entitlement of the Members to the final dividend for the financial year 2024-25, if approved by the Members at the AGM, is Friday, July 18, 2025.
Pursuant to the provisions of the Income-tax Act, 1961, dividend paid or distributed by the companies shall be taxable in the hands of the Members. The Company shall, accordingly, make the payment of dividend after deduction of tax at source, at the rates prescribed therein. For further details on taxability, please refer the "Annexure – TDS on Dividend" which forms part of this Annual Report.
Dividend Distribution Policy
The Dividend Distribution Policy of the Company, in terms of Regulation 43A of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the SEBI (LODR) Regulations, 2015"), is available on the Companys website at https://www.birlasoft.com/company/ investors/policies-reports-filings.
Share Capital
During the year under review, the Company allotted 1,939,772 equity shares of Rs.2/- each, under its Employees Stock Option Plans. The issued, subscribed and paid-up capital of the Company, as on March 31, 2025, is Rs.555,754,386/-, consisting of 277,877,193 equity shares of Rs.2/- each.
Transfer to General Reserve
During the year under review, the Company has not transferred any amount to General Reserve. For complete details on movement in Reserves and Surplus during the financial year ended March 31, 2025, please refer to the ‘Statement of Changes in Equity included in the standalone and consolidated financial statements which forms part of this Annual Report.
Credit Rating
The Company has been rated by CARE Ratings Limited ("Credit Rating Agency"), as below:
Facilities |
Rating |
| Long-term Bank Facilities | CARE AA+; Stable |
| Long-term/Short-term Bank | CARE AA+; Stable/CARE A1+ |
| Facilities | |
| Short-term Bank Facilities | CARE A1+ |
Quality and Information Security
The Company continues to improve its quality focus through internal initiatives and by getting assessed against international standards. During the current Voice of Customer ("VOC") cycle, customers have appreciated the value delivered by project teams and have rated them on an average at 4.54 on a scale of 1-5, 5 being the highest. This reinforces our commitment to boosting productivity by helping customers run their businesses efficiently.
In line with its focus to be assessed against international standards, Birlasoft is appraised for CMMI-DEV? (Development) & CMMI-SVC? (Services) V3.0 at Maturity Level 5. This milestone is a testimony to Birlasofts commitment to continuously improve on quality & operational processes, while at the same time, strengthening delivery capabilities to meet customer expectations. Birlasofts Quality Management system is certified for ISO 9001:2015 and ISO 20000:2018 Standards for IT Services and this reflects the Companys belief in delivering the right quality.
Birlasoft has continued to maintain a mature Information Security Management System & Privacy Information Management System in support of the hybrid workforce, providing improved user experience and security at the edge. The Company continues to remain ever vigilant of the evolving threat landscape globally and made investments in modern technologies and improved processes, whilst adopting automation to stay abreast of new and emerging threats. Birlasoft continues to be certified against the newer version of Information Security Management System standard - ISO 27001:2022 and Privacy Information Management System Standard - ISO 27701:2019. Further, as per SSAE 18 SOC 2 Type 2 criteria, the Companys service commitments and system requirements were achieved, which have also been validated by an independent audit firm.
Productivity
The Company is committed to productivity improvements to create a future abundant with a wealth of knowledge. Multiple initiatives like Knowledge Management, bRight, UREKA, and Value IN Customers Interest ("VINCI") enable the Company to harness latent knowledge in the organization and mobilize it.
bRight is an initiative that has been introduced to share the best practices & celebrate the accounts with exemplary performance, cross-account learning opportunities through eight different themes, driving continuous improvement culture across the organization.
Institutional Shareholding
As on March 31, 2025, the total Institutional Shareholding in the Company was 36.2% of the total paid-up equity share capital.
Subsidiaries, Associates and Joint Venture Companies
As on March 31, 2025, the Company has 13 subsidiaries, including step-down subsidiaries. The Company has two material subsidiaries, viz., Birlasoft Solutions Inc. & Birlasoft Inc., details of which are given in the Corporate Governance Report.
As per Section 129(3) of the Companies Act, 2013 ("the Act"), consolidated financial statements of the Company and all its subsidiaries have been prepared and the same form a part of this Annual Report. In terms of Rule 5 of Companies (Accounts) Rules, 2014, a statement containing salient features of the financial statements of subsidiaries in Form AOC-1 is annexed to this Report as "Annexure 1".
In accordance with Section 136(1) of the Act, this Annual Report of the Company, containing the standalone and the consolidated financial statements and all other documents required to be attached thereto has been placed on the website of the Company at www.birlasoft.com.
During the financial year 2024-25, the Company had no Associate or Joint Venture company.
Board of Directors, its Committees and Meetings thereof
The Companys Board comprises an optimal mix of executive, non-executive, and independent directors (including three women directors), offering a balanced array of knowledge, skills, and expertise. The Board provides strategic guidance and direction to the Company in achieving its business objectives and safeguarding the interests of all stakeholders.
The Board has following five Committees:
- Audit Committee;
- Stakeholders Relationship Committee;
- Nomination and Remuneration Committee;
- Corporate Social Responsibility Committee; and
- Risk Management Committee.
The Board meets once every quarter. Additional meetings of the Board/Committees are convened as may be necessary for the proper management of the business operations of the Company. A separate meeting of Independent Directors is also held at least once a year to review the performance of the Chairman, other Non-Independent Directors and the Board as a whole.
During the year, five Board meetings were held on April 29, 2024, July 31, 2024, October 23, 2024, February 11, 2025 and March 28, 2025. The maximum gap between any two consecutive meetings was within the period prescribed under the Act and SEBI (LODR) Regulations, 2015.
A detailed update on the Board and its Committees composition, meetings held and attendance of the Directors at these meetings is provided in the Corporate Governance Report, which forms a part of this Annual Report.
Directors and Key Managerial Personnel ("KMP")
There were no changes in the composition of Directors during the financial year.
In accordance with Section 152 of the Act, Angan Guha (DIN: 09791436), Executive Director of the Company, is liable to retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. The Nomination and Remuneration Committee & the Board recommends the resolution for his re-appointment for approval of the Members at the ensuing AGM. A brief profile and other details relating to re-appointment of Angan Guha are provided in this Annual Report.
None of the Directors are disqualified under Section 164(2) of the Act.
The following persons are currently designated as KMP of the Company pursuant to Sections 2(51) and 203 of the Act, read with the Rules framed thereunder:
Sr. No. |
Name | DIN/ Membership Number | Designation |
| 1 | Angan Guha | 09791436 | Chief Executive |
| Officer & Managing | |||
| Director | |||
| 2 | Kamini Shah | FCA 203593 | Chief Financial Officer |
| 3 | Sneha Padve | ACS 9678 | Company Secretary |
Independence of the Board
The Board comprises optimal number of Independent Directors. Based on the confirmation/disclosures received from the Directors and on evaluation of the relationships disclosed, the following Non-Executive Directors are independent in terms of Regulations 16(1)(b) and 25 of the SEBI (LODR) Regulations, 2015 and Section 149(6) of the Act:
1. Ananth Sankaranarayanan (DIN: 07527676);
2. Satyavati Berera (DIN: 05002709);
3. Nidhi Killawala (DIN: 05182060); and
4. Manish Choksi (DIN: 00026496).
All the abovenamed Directors have registered themselves with the Independent Directors Databank maintained by Indian Institute of Corporate Affairs ("IICA") and are either exempted from or have complied with the requirements of online proficiency self-assessment test conducted by IICA.
The Board is of the opinion that the Independent Directors of the Company possess the requisite qualifications, experience, proficiency, expertise and hold high standards of integrity.
Auditors
- Statutory Auditors
M/s. S R B C & Co LLP, Chartered Accountants (ICAI Firm Registration No.: 324982E/E300003), were appointed as the Statutory Auditors of the Company, at the AGM held on July 27, 2023, for a period of 5 (five) years till the conclusion of the AGM to be held in the year 2028.
During the year under review, the Auditors have not reported any matter under Section 143(12) of the Act, therefore no detail is required to be disclosed under Section 134(3)(ca) of the Act.
Further, in terms of Regulation 33(1)(d) of the SEBI (LODR) Regulations, 2015, the Statutory Auditors of the Company are subjected to the Peer Review process of the Institute of Chartered Accountants of India; and they have confirmed that they hold a valid certificate issued by the ‘Peer Review Board of Institute of Chartered Accountants of India.
Secretarial Auditor
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, Dr. K. R. Chandratre, Practising Company Secretary (FCS No.: 1370 and CP No.: 5144), was appointed as the Secretarial Auditor to conduct audit for the year under review. The Report of the Secretarial Auditor, for the financial year ended March 31, 2025, is annexed as "Annexure 2". It does not contain any qualification, reservation or adverse remark.
During the year under review, the Secretarial Auditor has not reported any matter under Section 143(12) of the Act, and therefore no details are required to be disclosed under Section 134(3)(ca) of the Act.
Further, pursuant to the SEBI (LODR) Regulations, 2015, and based on the recommendation of the Board of Directors of the Company, it is proposed to appoint Dr. K. R. Chandratre, a Peer Reviewed Company Secretary in Whole-time Practice, (Membership No.: FCS 1370 and Certificate of Practice No.: 5144), as the Secretarial Auditor of the Company, to hold office for a period of
5 (five) consecutive financial years commencing from April 1, 2025 till March 31, 2030.
Accordingly, an item for appointment of Dr. K. R. Chandratre as the Secretarial Auditor of the Company is being placed at the ensuing AGM for approval of the Members. Information about the proposed appointment is given in the Notice of AGM which forms part of this Annual Report.
Internal Auditor
The Internal Auditor and the Head of Internal Audit function within the Company reports functionally to the Audit Committee of Board, which reviews and approves risk based annual internal audit plan and the performance of internal audit function. The scope of work, including annual internal audit plan, authority and resources, is regularly reviewed and approved by the Audit Committee. Annual internal audit plan is aligned with the Enterprise Risk Management framework to ensure that all critical risks are covered in the audit plan. Internal Audit work is also supported by the services of leading international audit firms.
Annual Secretarial Compliance Report
Pursuant to Regulation 24A of the SEBI (LODR) Regulations, 2015, the Company has undertaken an audit for the year ended March 31, 2025, for all applicable compliances. The Annual Secretarial Compliance Report duly signed by Dr. K. R. Chandratre, Practising Company Secretary, is available on the website of the Company athttps://www.birlasoft.com/company/ investors/policies-reports-filings.
Corporate Governance
Pursuant to Regulation 34 of the SEBI (LODR) Regulations, 2015, Corporate Governance Report for the year ended March 31, 2025, forms an integral part of this Annual Report. It also includes a certificate from the Practicing Company Secretary in respect of compliance with the provisions of the SEBI (LODR) Regulations, 2015 related to Corporate Governance.
Management Discussion and Analysis
In terms of provisions of Regulation 34(2) of the SEBI (LODR) Regulations, 2015, a detailed review of the operations, performance and outlook of the Company and its business is given in the Management Discussion and Analysis Report, which is presented in a separate section forming part of this Annual Report.
Awards & Recognitions
In recognition of its constant quest for excellence, the Company has been awarded and recognised at various forums. The prominent ones are listed below:
Corporate
• Birlasoft recognized as a Great Place to Work for the fourth consecutive year.
• Birlasoft is among the TOP 100 Great Places to Work.
• Birlasoft recognized as one of Indias Top 50 Best Workplaces in IT & IT-BPM 2024 by Great Place to Work?.
• Birlasoft recognized amongst the Top Leadership Factories in India by the Great Manager Institute.
• Birlasoft ranked amongst Indias Top 50 Companies with Great Managers™ for 2024 by People Business.
• Birlasoft recognized at Jombays WOW Workplace Awards 2025 – for creating an innovative and inclusive workplace.
• Birlasoft CFO Kamini Shah bagged Gold for Excellence in Corporate Governance and Silver for Excellence in Risk Management at the ASSOCHAM 3rd Vibrant Bharat CFO Summit & Awards.
• Birlasoft CFO Kamini Shah recognized as the Visionary Leader of 2024 at the FE Finance Leadership Dialogue 2024.
• Birlasoft COO Dr. Selvakumaran Mannappan featured in the ‘Chief Operating Officer: Operational Maestros list by HR ASSOCIATION OF INDIA (HRAI).
• Birlasoft won two awards at ISG Women in Digital awards in the APAC and India region. Rishu Sharma, Director of the Digital and Data practice, won the title of Digital Titan. Sarika Arora Saini, DEI Lead, received Silver under the Womens Advocacy category.
• Birlasoft bagged one Gold and four Silver awards for its bInclusive campaign at the Economic Times BrandEquity MarTech Awards 2024, FE FuTech Awards 2024, and e4m MarTech India Awards 2024.
• Birlasofts weekly radio show - Birlasoft on Air won Gold at the 13th ACEF Global Customer Engagement Awards.
• Birlasoft awarded for Best Legal Tech Implementation by the Economic Times at the Global Legal Awards 2024-25.
Business
• Birlasoft recognized as the SnapLogic Americas Partner of the Year 2025.
• Birlasoft received the Corporate Governance Excellence Award 2024 by the Directors Institute.
• Birlasoft honoured for its Outstanding Contribution to Digital Transformation at the GCC Excellence Award 2024.
• Birlasoft won the prestigious SAP ALM Excellence at the Indus Awards 2024.
• Birlasoft recognized as the Innovative Partnership Leader at Synchronys Path to Parity 2024.
Human Resources
• Birlasoft bagged Gold at The Economic Times Human Capital Awards 2024 in the ITES & Telecom category.
• Birlasoft secured Gold at the BW People Tech Future Awards 2025 in the HR Tech category for its SkillFolio initiative.
• Birlasofts HR Leaders Deeraj Malhotra and Runu Jain recognized at the BW People HR 50 Under 50 Awards 2025.
• Birlasoft bagged Gold at the Brandon Hall Group HCM Excellence Awards 2024 in the Best Learning Technology Implementation category for ‘Democratizing Learning - Ride the Tide of Change initiative.
• Birlasofts Young Titans High Potential Development Program earned Silver at the Brandon Hall Group HCM Excellence Awards 2024.
Diversity Equity & Inclusion
• Birlasoft recognized with 7 awards at the DivHersity & ForHer Awards 2025 across seven categories.
• Birlasoft certified as DEI Crusader at the ET Now Diversity and Inclusion Summit 2024.
• Birlasoft recognized as a DEI Champion at the DEI Awards 2024 by the HR Association of India.
Corporate Social Responsibility
• Birlasofts CSR initiative, Project Shodhan, awarded the Eco Warrior Award at the Karma Summit 2024.
Environmental Social & Governance
• Birlasoft recognized as one of the ‘ESG Champions of India 2025 in the Supplier Engagement category by Dun & Bradstreet.
• Birlasoft bags Bronze at the BW Businessworld FM Conference and Excellence Awards 2024 for its Green Building practices.
• Birlasoft has secured the Diamond Award for Leader of the year 2024-25 in Water stewardship category at INFHRA Corporate Excellence Awards 2024-25 - New Delhi Edition.
Analyst recognitions
• Birlasoft recognized as ‘Leader in the ‘SAP Ecosystem Partners 2025 ISG Provider Lens™ Study - APAC, Germany, U.S.
• Birlasoft identified as a ‘Leader in the ‘Oil and Gas Industry - Services and Solutions 2024 ISG Provider Lens™ Study - North America.
• Birlasoft recognized as ‘Leader in the ‘Next-Gen ADM Services 2024 ISG Provider Lens Study - APAC, Europe, U.S.
• Birlasoft positioned in ‘Leader Zone by Zinnov for ‘Digital Engineering and ER&D Services – U.S. Digital Engineering Services and Data and AI services – 2024.
• Birlasoft recognized as ‘Leader in the ‘Generative AI Services 2024 ISG Provider Lens Study - Global.
• Birlasoft positioned in ‘Horizon 2 as an ‘Enterprise Innovator in the HFS Generative Enterprise Services 2025 Horizons Report.
• Birlasofts three case studies recognized as ‘Stand Out, one each in Manufacturing, ERP and Data & Digital.
• Birlasoft recognized as an ‘Innovator in Avasants SAP Successfactors Services 2024 Radarview™ report.
• Birlasoft recognized as ‘Star Performer and a ‘Major Contender in the Everest Group Capital Markets IT Services PEAK Matrix? Assessment.
• Birlasoft identified as ‘Rising Star and ‘Major Contender in the Everest groups SAP Business Application Services PEAK Matrix? Assessment 2025.
• Birlasoft identified as a ‘Product Challenger; Market Challenger and Contender in the ‘Manufacturing Industry Services and Solutions 2024 ISG Provider Lens™ Study - EUR, North America.
• Birlasoft recognized as a ‘Major Contender in the ‘Quality Engineering (QE) Services for AI Applications and Systems PEAK Matrix? Assessment 2024 by Everest.
• Birlasoft recognized as ‘Market Challenger and ‘Product Challenger in the ‘Digital Engineering Services 2025 ISG Provider Lens™ Study - Europe, U.S.
• Birlasoft identified as a ‘Product Challenger in the ‘Advanced Analytics and AI Services ISG Provider Lens Study.
• Birlasoft identified as a ‘Product Challenger in the ‘Intelligent Automation Services and Solutions 2024 ISG Provider Lens™ Study.
• Birlasoft identified as a ‘Product Challenger in the ‘Insurance Services 2024 ISG Provider Lens™ Study.
• Birlasoft recognized as ‘Product Challengers in the ‘Supply chain Services 2024 ISG Provider Lens Study - Brazil, Europe and U.S.
• Birlasoft recognized as a ‘Product Challenger in ISGs Life Sciences Digital Services report.
• Birlasoft recognized as ‘Major Contender in ‘Everest Group Open Banking IT Services PEAK Matrix Assessment 2024.
• Birlasoft identified as ‘Innovator in the Avasant High-Tech Industry Digital Services 2024-2025 RadarView™.
• Birlasoft recognized as a ‘Major Contender in Everests Capital Markets IT Services Peak Matrix Assessment 2024.
• Birlasoft recognized as a ‘Disruptor in Avasants Multisourcing Service Integration 2023–2024 Radarview™ report.
• Birlasoft identified as ‘Disruptor in the Avasant Life Sciences Digital Services 2025 RadarView™.
• Birlasoft identified as a ‘Disruptor in the ‘Avasant Hybrid Enterprise Cloud Services 2024-2025 RadarView Report.
• Birlasoft recognized as a ‘Disruptor in Avasants Manufacturing Digital Services 2024 Radarview™ report.
Particulars of Employees, Directors and Key Managerial Personnel
The ratio of remuneration of each Director to the median employees remuneration and other details prescribed in Section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are annexed to this Report as "Annexure 3".
In terms of the provisions of Section 197(12) of the Act, read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names of employees and other particulars of the top ten employees and employees drawing remuneration in excess of the limits as provided in the said Rules are required in the Boards Report as an addendum thereto. However, in terms of provisions of the first proviso to Section 136(1) of the Act, this Annual Report is being sent to the Members of the Company excluding the aforesaid information. The said information is available for inspection and any Member interested in obtaining such information may write to the Company Secretary for the same.
Employees Stock Option Plans ("ESOPs")
The information pursuant to the provisions of the Act and Regulation 14 of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, relating to ESOPs of the Company, is annexed to this
Report as "Annexure 4" and has been uploaded on the website of the Company and can be accessed through web link https:// www.birlasoft.com/company/investors/policies-reports-filings.
Certificate from Dr. K. R. Chandratre, Practising Company Secretary (FCS No.: 1370 and CP No.: 5144), the Secretarial Auditor of the Company, confirming that the schemes have been implemented in accordance with the said SEBI Regulations, would be placed at the ensuing AGM of the Company for inspection by the Members.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
The Company has zero tolerance towards sexual harassment at the workplace and has adopted a Policy on prevention and prohibition of sexual harassment at workplace ("POSH Policy"). The Company has also put in place a redressal mechanism for resolving complaints received with respect to sexual harassment and discriminatory employment practices for all genders. This process ensures complete anonymity and confidentiality of information. An Internal Committee ("the IC") has been constituted to investigate and resolve all sexual harassment complaints reported to this Committee.
During the year under review, six complaints of sexual harassment were received by the Company. Details as per the provisions of Sections 21 and 22 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, are as under:
| Number of cases pending at | Nil |
| the beginning of the financial | |
| year | |
| Number of complaints filed | 6 |
| during the financial year | |
| Number of cases pending at | Nil |
| the end of the financial year | |
| Details of workshops or | • The IC was reconstituted |
| awareness programs against | and is also represented |
| sexual harassment carried out | by a Lawyer through an |
| external POSH partner. | |
| • Three training sessions | |
| were conducted for the IC | |
| members. Two sessions | |
| by the External Partner | |
| and one by a legal firm. |
| • | All new joiners are |
| provided POSH | |
| orientation and mandatory | |
| formal training sessions | |
| through e-learning | |
| modules. | |
| • | All existing employees |
| are required to undergo | |
| mandatory refresher | |
| training through | |
| e-learning modules. | |
| • | Regular (quarterly) POSH |
| awareness mailers and | |
| complaint mechanism is | |
| shared with all employees | |
| over email. | |
| Nature of action taken by the Conciliation – 2 cases | |
| employer or district officer | |
| Warning Letter and | |
| Promotion & Increment | |
| withholding: 1 case | |
| Warning Letter: 1 case | |
| Termination: 2 cases |
Policy on Directors appointment and remuneration
Pursuant to the provisions of Section 134(3)(c) of the Act, the policy of the Company on the appointment and remuneration of Directors including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under Section 178(3) of the Act is annexed to this Report as "Annexure 5". This Nomination and Remuneration Policy as approved by the Board is available on the Companys website and can be accessed through the web link https://www.birlasoft.com/company/investors/ policies-reports-filings.
Particulars of loans, guarantees or investments
The details of loans, guarantees and investments, if any, which are covered under the provisions of Section 186 of the Act are given in the notes to the financial statements.
Related Party Transactions
The Company has adequate procedures for identification and monitoring of related party transactions. All the transactions entered into with the related parties during the financial year were at arms length basis and in the ordinary course of business. The related party transactions are placed before the Audit Committee on a quarterly basis for their approval/noting, as the case may be.
For details on related party transactions, Members may refer to the notes to the financial statements. The Policy on Related Party Transactions as approved by the Board is available on the Companys website and can be accessed through the web link https://www.birlasoft.com/company/ investors/policies-reports-filings.
Pursuant to the provisions of Section 134(3)(h) of the Act, the particulars of contracts or arrangements with related parties referred to in Section 188(1) of the Act and prescribed in Form AOC-2 of Companies (Accounts) Rules, 2014, is annexed to this Report as "Annexure 6".
Material changes and commitments
No material changes and commitments affecting the financial position of the Company have occurred between the end of the financial year of the Company to which the financial statements relate, and the date of this Report.
Enterprise Risk Management Policy
The Board has constituted a Risk Management Committee (the "RMC") to review the risk management plan/process of the Company. The RMC assists the Board in its oversight of the Companys management of key risks, including strategic and operational risks, as well as the guidelines, policies and processes for monitoring and mitigating such risks under the aegis of the overall Business Risk Management Framework.
The Company has an Enterprise Risk Management Policy which has been approved by the Board. This Policy acts as an overarching statement of intent and establishes the guiding principles by which key risks are managed across the organization. The Board monitors and reviews periodically the implementation of various aspects of the Enterprise Risk Management Policy through the RMC.
A write-up on ‘Enterprise Risk Management forms part of this Annual Report.
There are no risks identified by the Board which may threaten the existence of the Company.
Internal Control Systems and Adequacy of Internal Financial Controls
The Company has put in place adequate internal financial control procedures and has identified and documented all key financial controls, which impact the financial statements as part of its Standard Operating Procedures. The financial controls are tested for operating effectiveness through ongoing monitoring and review process by the management and also independently by the Internal Auditor. Where weaknesses are identified as a result of such reviews, new procedures are put in place to strengthen controls, and these are in turn reviewed at regular intervals.
Based on the review, it has been determined that the Internal Control over Financial Reporting as at March 31, 2025, requires further strengthening with regard to maintenance of adequate documentation to support the operating effectiveness of controls relating to timely recording of time incurred by employees and sub-contractors on time-and-material revenue contracts, which could potentially result in the Company recognizing revenue on such contracts, which is not in agreement with the accounting policies for revenue recognition. Statutory Auditors have considered this a material weakness in determining the nature, timing and extent of audit tests applied in their audit of annual financial statements of the Company for the year ended March 31, 2025, but it does not affect their opinion on the annual financial statements of the Company. The Statutory Auditors have expressed an unqualified opinion on the Companys financial statements.
The managements response to the same is as follows:
The Board and management have taken note of the aforesaid and endeavour to make internal control systems more stringent. Effective steps are being taken in this regard. The Statutory Auditors report does not contain any other qualifications, reservations, adverse remarks or disclaimers.
Audit Committee
The Board has a duly constituted Audit Committee in line with the provisions of the Act and the SEBI (LODR) Regulations, 2015. The primary objective of the Committee is to monitor and provide effective supervision of the managements financial reporting process, to ensure accurate and timely disclosures, with the highest level of transparency, integrity and quality of financial reporting. The Committee met four times during the year. Detailed information pertaining to the Audit Committee has been provided in the Corporate Governance Report.
Committee Recommendations
During the year, recommendations of all the Committees were accepted by the Board.
Corporate Social Responsibility ("CSR")
The details of the initiatives taken by the Company during the year on CSR, in accordance with Section 135 of the Act and the Companies (Corporate Social Responsibility Policy) Rules, 2014 & the amendments thereto, along with information about CSR Committee of the Board, is annexed to this Report as
"Annexure 7".
The CSR Policy of the Company is available on the website of the Company and can be accessed through the web link https:// www.birlasoft.com/company/investors/policies-reports-filings.
Annual Evaluation of the Board, its Committees and Individual Directors
A formal evaluation of the performance of the Board, its Committees, the Chairman and the individual Directors was carried out for the financial year 2024-25. The performance evaluation was done individually using structured questionnaires, covering composition of Board, receipt of regular inputs and information, functioning, performance and structure of Board Committees, skill set, knowledge and expertise of Directors, attendance at Board/Committee meetings, preparation and contribution at Board/Committee meetings, leadership, etc. The performance evaluation of the respective Committees and that of Independent and Non-Independent Directors was done by the Board, excluding the Director being evaluated. List of Key Skills/Expertise/Competencies of the Board is provided in the Corporate Governance Report.
The performance evaluation of Non-Independent Directors, the Chairman and the Board was done by the Independent Directors.
Establishment of Vigil Mechanism
The Company has a Whistle Blower Policy covering vigil mechanism as per Regulation 22 of the SEBI (LODR) Regulations, 2015, for the Directors and employees to report their genuine concerns. The details of the same are explained in the Corporate Governance Report. The Whistle Blower Policy can be accessed on the Companys website at https://www.birlasoft. com/company/investors/policies-reports-filings.
Annual Return
Pursuant to Sections 134(3)(a) and 92(3) of the Act, read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return in e-form MGT-7 can be accessed on the Companys website at https://www.birlasoft.com/company/ investors/policies-reports-filings#annual-return.
Conservation of energy, technology absorption and foreign exchange earnings and outgo
Information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Act, read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed as "Annexure 8" to this Report.
Directors Responsibility Statement
The Directors, to the best of their knowledge and belief and according to the information and explanations obtained, and pursuant to Section 134(3)(c) and Section 134(5) of the Act, confirm that:
i) in the preparation of the annual accounts for the financial year ended March 31, 2025, the applicable accounting standards have been followed and there are no material departures;
ii) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2025 and of the profit of the Company for the year ended March 31, 2025;
iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; read with the observation appearing in "Internal Control Systems and Adequacy of Internal Financial Controls";
iv) they have prepared the annual financial statements on a going concern basis;
v) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively, read with the observation appearing in "Internal Control Systems and Adequacy of Internal Financial Controls"; and
vi) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
CEO & CFO Certification
As required by Regulation 17(8) of the SEBI (LODR) Regulations, 2015, the CEO and CFO certificate, for the year under review was placed before the Board at its meeting held on May 28, 2025.
A copy of such certificate forms a part of the Corporate Governance Report.
Secretarial Standards issued by the Institute of Company Secretaries of India
The Company complies with all applicable Secretarial Standards as issued by the Institute of Company Secretaries of India.
Listing with Stock Exchanges
The equity shares of the Company continue to be listed on the National Stock Exchange of India Limited and BSE Limited. The Annual Listing Fee for the financial year 2025-26 has been paid to these exchanges.
Directors & Officers Insurance Policy
The Company has in place an insurance policy for its Directors & Officers with a quantum and coverage as approved by the Board. The policy complies with the requirement of Regulation 25(10) of the SEBI (LODR) Regulations, 2015.
Other Statutory Disclosures
The Directors state that no disclosure or reporting is required with respect to the following items as there were no transactions related to these items during the year under review:
- Details relating to Deposits covered under Chapter V of the Act;
- Issue of sweat equity shares or equity shares with differential rights as to dividend, voting or otherwise;
- Raising of funds through preferential allotment or qualified institutions placement;
- Provision of money for purchase of its own shares by employees or by trustees for the benefit of employees;
- Significant or material order passed by any regulators or courts or tribunals against the Company impacting the going concern status and Companys operations in future;
- Application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016;
- Instance of one-time settlement with any financial Institution; and
- Maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148(1) of the Act.
Acknowledgments
The Directors sincerely appreciate the trust placed in Birlasofts professional integrity by our valued investors and customers.
The Directors extend their gratitude to all business partners and bankers for their unwavering support. Additionally, the Directors place on record their appreciation to the invaluable contributions of employees at all levels, whose diligence, unity, cooperation, and support have been instrumental in the Companys sustained growth.
The Directors extend their profound gratitude to the governments of the various countries where the Company operates. Furthermore, the Directors express their sincere appreciation to the Government of India, particularly the Ministry of Communication and Information Technology, the Ministry of
Commerce, the Ministry of Finance, the Ministry of Corporate Affairs, the Customs and Indirect Taxes Departments, the Income Tax Department, the Reserve Bank of India, the State Governments, and the Software Development Centres (SDCs)/ Special Economic Zones (SEZs)/Domestic Tariff Area (DTA) in Pune, Noida, Mumbai, Navi Mumbai, Chennai, Coimbatore, Bengaluru, Hyderabad, and other governmental agencies. The Directors anticipate their continued patronage in the future.
The Board remains committed to fostering strong relationships and advancing mutual growth and success.
| For and on behalf of the Board of Directors | |
| Amita Birla | |
| New York | Chairman |
| May 28, 2025 | DIN: 00837718 |
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