Birlasoft shares are down 45% from record high, analysts on recovery signals

Shares of multibagger Birlasoft Ltd are down 45% from their record high in a year. The IT stock, which hit a record high of Rs 687 on August 30 last year closed 2% higher at Rs 375.65 in the current session. The IT stock is down 33.28% in 2025 and fallen 11.37% in six months as market sentiment was hit by Trump tariffs on India. The multibagger stock has lost 44% in a year but gained 122.41% in five years. In 10 years, the IT stock zoomed 508%. 

On the other hand, benchmark BSE 500 index lost 5% in a year and gained 32% in two years. 

Birlasoft shares ended 2% higher at Rs 375.65 on Monday. Total 0.21 lakh shares of the firm changed hands amounting to a turnover of Rs 77.59 lakh on BSE. Market cap of the firm climbed to Rs 10,443 crore on BSE. The multibagger IT stock fell to a 52-week low of Rs 330.15 on April 7, 2025.

Birlasoft stock has a one-year beta of 1.4, indicating very high volatility during the period.   

In terms of technicals, the relative strength index (RSI) of the stock stands at 37.1, signaling it's trading neither in the overbought nor in the oversold zone. 

Drumil Vithlani Technical Research Analyst at Bonanza said, "Birlasoft is attempting to stabilize after a corrective phase. The positive RSI divergence and strong base near Rs 365 suggests a potential relief rally. The stock has formed a near-term base around Rs 365– Rs 370, which is acting as a strong support. Multiple candles have tested this level, suggesting demand is emerging here. RSI (Relative Strength Index): Currently around 40, forming a positive divergence as price made equal/lower lows, but RSI is making higher lows indicating early sign of momentum revival. Stop loss can be fixed at Rs 350 with upside targets of Rs 405 & Rs 430."

Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global Securities said, "Birlasoft has spent the past two weeks locked in a tug-of-war, with bears pressing the stock lower while buyers attempt to defend key support levels. After peaking near Rs 450 in February 2025, the counter has steadily retreated, recently testing the ?363–365 zone before finding some stability.

From a technical standpoint, the stock remains under pressure, trading below a dense cluster of moving averages, including its 200-day exponential moving average. Momentum indicators such as MACD continue to signal weakness, keeping the near-term bias tilted toward the bears. On the downside, the Rs 362– Rs 360 region remains a crucial cushion. A break below Rs 360 could open the door for a deeper slide toward the Rs 340–335 range. On the flip side, resistance is stacked around Rs 390–395, with a convincing close above this zone—supported by strong volumes—likely to mark the first sign of a sustainable recovery, paving the way toward Rs 415–420. For now, Birlasoft retains a bearish undertone. Unless a decisive breakout emerges, the stock is likely to remain a “sell-on-rallies” candidate in the short term."

Hardik Matalia, Derivative Analyst, Choice Broking says long term investors can add more on dips for a staggered investment approach.

"The stock is currently trading around Rs 376, after remaining in a bearish trend over the past few months, marked by the formation of lower highs and lower lows on the daily timeframe. Recently, the stock has started showing early signs of a possible reversal from its support levels, but a clear confirmation is still awaited. A sustainable move above Rs 400 could trigger a short-term bounce, while for the broader trend to shift decisively, the stock would need to deliver a strong breakout above the Rs 450 zone. On the technical front, BirlaSoft continues to hover below all its key moving averages, though it is now approaching its short-term and medium-term EMAs. Surpassing these levels could open the path toward testing its long-term EMA. This suggests that the stock may attempt a recovery phase if it sustains above near-term supports. However, if the Rs 350–Rs 330 support zone is breached, the stock could witness further extended selling pressure.

For short-term traders, fresh buying opportunities should be considered only once a reversal is confirmed. Long-term investors, on the other hand, may begin partial accumulation at current levels and look to add more on dips for a staggered investment approach."

The IT company reported a 29 per cent fall in profit after tax (PAT) to Rs 106 crore for the June 2025 quarter against a profit of Rs 150.2 crore in the same period last year. 

Revenue from operations also fell 3.2% to Rs 1,284.8 crore against Rs 1327 crore in the year-ago period. Operating profit (EBIT) fell 21% YoY to Rs 138 crore, while the EBIT margin slipped to 10.7% from 13.7% in Q1FY25.

Birlasoft is engaged in providing information and communication, computer programming, consultancy, and related activities. The company provides a range of services, which includes digital and enterprise technologies and services.