Firstsource Solutions Limited (FSL)
₹281.80 +0.02% last close, 16 Oct
Q2 FY27 results
📅 Next results: 29 Oct 2026 (board meeting)Firstsource Solutions Limited's board meets on 29 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Firstsource Solutions' revenue was ₹2,725 Cr (+22.9% year on year, +5.5% on the previous quarter), and net profit ₹166 Cr (-1.8% year on year); the operating margin was 16.6%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹2,725 | +22.9% | +5.5% |
| Operating profit | ₹451 | +30.1% | +5.0% |
| Net profit | ₹166 | -1.8% | -19.1% |
| EPS (₹) | 2.40 | +0.4% | -17.2% |
| Operating margin | 16.6% | — | — |
FSL delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 24.05% of the FSL shares traded on NSE were taken to delivery, against the stock's own 20-session average of 32.16%. That is close to its usual level. Volume was 0.4 times its average, well below normal.
Delivery in the last 5 sessions: 39.4% · 9.9% · 38.5% · 25.9% · 24.1%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Firstsource Solutions announced that it was recognized as the first runner-up in the 'Services Eating Software' category at the 2026 HFS Services-as-Software (SaS) Awards. The recognition was selected from more than 250 global submissions and highlights its AI-native operating system, Kairos. An accompanying HFS report noted that Firstsource is among six tracked service providers whose revenue growth outpaced headcount growth for four consecutive quarters. The announcement does not disclose any direct contract wins or immediate financial impacts.
- Named first runner-up among 250+ submissions at the 2026 HFS Services-as-Software Awards
- Recognized for its AI-native operating system Kairos, built on 25 years of domain experience
- Reported by HFS to have revenue growth outpacing headcount growth for 4 consecutive quarters
Firstsource Solutions Limited has informed stock exchanges that Niche Ninety Nine Capability and Certifications (OPC) Private Limited assigned the company an ESG rating of 75.00. The rating was reported to exchanges by Niche on September 17, 2026. Firstsource clarified that it did not engage Niche for this assessment, which was independently prepared using publicly available domain data. The update is purely informational and has no direct financial or operational impact on the company.
- ESG rating of 75.00 assigned by Niche Ninety Nine Capability and Certifications (OPC) Private Limited
- Rating was intimated to stock exchanges by Niche on 17th September 2026 at 6:50 p.m. (IST)
- FSL confirmed it did not engage Niche; the rating is an independent unsolicited assessment based on public data
Firstsource Solutions Limited has approved the allotment of 67,968 equity shares on September 9, 2026. The allotment was carried out pursuant to the exercise of stock options under the company's ESOP 2019 Plan and ESOS 2003 scheme. Approval was granted by the Trustees of the Firstsource Employee Benefit Trust at 11:57 AM. This is a routine share issuance resulting in minimal equity dilution.
- Allotment of 67,968 equity shares approved on September 9, 2026
- Issued pursuant to ESOP 2019 Plan and ESOS 2003
- Trustees of Firstsource Employee Benefit Trust approved the issuance at 11:57 AM
Firstsource Solutions Limited (FSL) has notified the exchanges of its schedule for analyst and institutional investor interactions across September 2026. Management is scheduled to attend Axis Capital's Consumer & Tech Conference and a one-on-one with Franklin Templeton on September 11, 2026. Subsequent meetings include a one-on-one session with Emkay Global on September 21, 2026, and participation in the JP Morgan AI Day Conference on September 23, 2026. The company confirmed that only publicly available information will be discussed without sharing unpublished price-sensitive information.
- Schedule covers 4 separate institutional interaction sessions across September 2026
- Axis Capital Consumer & Tech Conference and Franklin Templeton 1-on-1 scheduled for September 11, 2026
- Emkay Global 1-on-1 session scheduled for September 21, 2026
- JP Morgan AI Day Conference group interaction scheduled for September 23, 2026
Firstsource Solutions Limited has approved the allotment of 269,883 equity shares following the exercise of stock options under its ESOP 2019 Plan. The allotment was approved by the Trustees of the Firstsource Employee Benefit Trust on August 28, 2026. This is a routine capital addition resulting from employee option exercises.
- Allotment of 269,883 equity shares under the ESOP schemes
- Shares allotted pursuant to the exercise of options under the ESOP 2019 Plan
- Approved by the Trustees of Firstsource Employee Benefit Trust on 28th August 2026
Firstsource Solutions Limited has notified the stock exchanges about an upcoming interaction with institutional analysts. The company's Key Managerial Personnel are scheduled to hold a one-on-one physical meeting with PL Capital on August 26, 2026. FSL stated that only information already in the public domain will be reiterated and no unpublished price-sensitive information (UPSI) will be shared.
- One-on-one physical meeting scheduled with PL Capital on August 26, 2026
- Interaction to be conducted by Key Managerial Personnel (KMP)
- Company confirmed no unpublished price-sensitive information (UPSI) will be shared
Firstsource Solutions Limited has announced the allotment of 127,883 equity shares pursuant to the exercise of stock options under its ESOS 2003 and ESOP 2019 Plan. The allotment was approved by the Trustees of the Firstsource Employee Benefit Trust on 19th August 2026 at 6:20 p.m. This is a routine corporate action resulting in negligible equity dilution.
- Allotment of 127,883 equity shares under ESOS 2003 and ESOP 2019 Plan
- Approval granted by Trustees of Firstsource Employee Benefit Trust on 19th August 2026
- Options exercised pursuant to the company's ESOP 2019 Plan
Firstsource Solutions Limited (FSL) has allotted 353,905 equity shares to employees on August 12, 2026. This allotment follows the exercise of stock options under the company's ESOS 2003 and ESOP 2019 plans. The action was approved by the Trustees of the Firstsource Employee Benefit Trust. This is a routine administrative procedure that results in a marginal increase in the company's total outstanding equity capital.
- Total allotment of 353,905 equity shares on August 12, 2026
- Shares issued under ESOS 2003 and ESOP 2019 Plan frameworks
- Trustees of Firstsource Employee Benefit Trust approved the allotment at 5:01 p.m.
- The allotment is pursuant to the exercise of stock options granted to employees
FSL reported a strong Q1FY27 with revenue reaching ₹2,720 Cr, a 22.9% YoY increase, marking the 11th consecutive quarter of sequential growth. EBIT margins expanded to 12.4%, up 110 bps YoY, driven by operational efficiencies and AI-led transformation. The company secured 4 large deals (ACV >$5M each) and added 12 new logos, with the BFS vertical growing 14% YoY in constant currency. Management maintained FY27 revenue growth guidance of 10-13% CC and aims for 14-15% EBIT margins over the next 2-3 years.
- Revenue grew 22.9% YoY to ₹27.2 billion (₹2,720 Cr) in Q1FY27, marking 9 straight quarters of double-digit growth.
- EBIT margin improved by 110 bps YoY to 12.4%, representing the 7th consecutive quarter of margin expansion.
- Signed 4 large deals with Annual Contract Value (ACV) exceeding $5 million each, the highest ACV intake in 4 quarters.
- Added 12 new logos during the quarter, including 3 strategic logos with potential for $5M+ annual relationships.
- BFS vertical grew 14% YoY in constant currency, driven by strong demand in collections and financial crime compliance.
Firstsource Solutions (FSL) has announced a strategic partnership with Cresta to deploy AI-powered customer experience (CX) solutions across the US, UK, Australia, and Middle East. To support this, FSL has established a dedicated AI Center of Excellence to integrate Cresta's AI agents with FSL's 'Kairos' operating system. This move aligns with FSL's strategy to drive 50-75 bps EBIT margin expansion through AI infusion across its TTM revenue base of Rs 9,559 Cr. While no specific deal value was disclosed, the partnership targets efficiency gains for FSL's 100+ global clients.
- Established 1 dedicated AI Center of Excellence to serve as the integration engine for Cresta deployments.
- Partnership targets 4 key geographic regions: US, UK, Australia, and the Middle East.
- Aims to support management's target of 50-75 bps EBIT margin expansion through operational efficiency.
- Leverages FSL's existing infrastructure of 51 delivery centers and 35,997 employees to scale AI solutions.
- Integrates Cresta's AI platform with FSL's proprietary 'Kairos' operating system for AI-native operations.
Firstsource Solutions Limited (FSL) successfully concluded its 25th Annual General Meeting on August 6, 2026, with shareholders approving all four proposed resolutions. Key approvals included the formal adoption of FY26 audited financial statements and the confirmation of a 55% interim dividend (Rs 5.50 per share). Shareholders also supported the re-appointment and continuation of Mr. Pradip Kumar Khaitan as a Non-Executive Director with over 99.9% approval. The voting process saw high participation, with 58.84 crore votes polled, representing strong alignment between the board and shareholders.
- Confirmed interim dividend of 55% (Rs 5.50 per equity share) for the financial year ended March 31, 2026
- Resolution for adoption of FY26 financial statements passed with 58,83,93,910 votes in favor (100% of valid votes)
- Special resolution for the continuation of Mr. Pradip Kumar Khaitan as Director passed with 99.99% majority
- Total shareholder base stood at 2,40,674 as of the record date of July 30, 2026
- Promoter group demonstrated 100% voting participation with 37,39,76,673 shares polled
Firstsource Solutions (FSL) has released the audio recording link for its Q1 FY27 earnings conference call held on August 6, 2026. This follows the Board's approval of the audited financial results for the quarter ended June 30, 2026. The filing is a standard regulatory requirement to ensure transparency for shareholders who could not attend the live call. Investors can use this to gauge management's progress on the 'FSL80' cohort strategy and the integration of recent acquisitions like Ascensos.
- Earnings call conducted on August 6, 2026, for the June 2026 quarter.
- Board approval of results finalized on August 6, 2026.
- Company operates with a TTM revenue of Rs 9,559 Cr and OPM of 16.3%.
Firstsource Solutions Limited (FSL) concluded its 25th Annual General Meeting on August 6, 2026. Shareholders transacted four key items, including the adoption of FY26 financial statements and the confirmation of a 55% interim dividend (Rs 5.50 per share). The meeting also addressed the re-appointment of Mr. Pradip Kumar Khaitan, requiring a special resolution for his continuation beyond the age of 75. With a TTM EPS of Rs 9.63, the confirmed dividend represents a payout ratio of approximately 57%.
- Confirmation of 55% interim dividend amounting to Rs 5.50 per equity share for FY26.
- Adoption of Audited Standalone and Consolidated Financial Statements for the year ended March 31, 2026.
- Special Resolution proposed for the continuation of Mr. Pradip Kumar Khaitan as Director beyond 75 years of age.
- Total of 96 members attended the meeting conducted via Video Conferencing.
- Remote e-voting concluded on August 5, 2026, with results to be declared following the Scrutinizer's Report.
Firstsource Solutions (FSL) reported a strong operational performance for Q1 FY27, with revenue growing 22.9% YoY to ₹2,724.9 Cr. EBIT saw a significant jump of 34.8% YoY to ₹336.7 Cr, with margins expanding by 110 bps to 12.4%. However, reported PAT declined 2% YoY to ₹165.9 Cr due to a one-time exceptional charge of ₹71.7 Cr related to new Labour Codes. The company maintained its FY27 guidance of 10-13% constant currency revenue growth and 12.25-12.75% EBIT margins.
- Revenue from operations grew 22.9% YoY to ₹2,724.9 Cr, contributing ~28.5% of TTM revenue.
- EBIT margin expanded by 110 bps YoY to 12.4%, reaching ₹336.7 Cr.
- Secured a large transformative deal with a UK-based benefits and pensions administration provider.
- Total headcount reached 36,875 with a net addition of 670 employees during the quarter.
- Exceptional item of ₹71.7 Cr recognized for the one-time impact of new Labour Codes.
Firstsource Solutions (FSL) reported a strong start to FY27 with Q1 revenue of ₹2,724.9 crore, up 22.9% YoY. EBIT margins improved significantly by 110 bps YoY to 12.4%, reflecting operational efficiencies. While PAT including exceptional items fell 2% YoY to ₹165.9 crore due to a ₹71.7 crore one-time impact from new Labour Codes, core operational performance remains robust. The company has guided for 10-13% constant currency revenue growth for the full FY27.
- Revenue from operations grew 22.9% YoY to ₹2,724.9 crore in Q1 FY27.
- EBIT margin expanded by 110 bps YoY to 12.4%, reaching ₹336.7 crore.
- Secured a large transformative deal with a UK-based benefits and pensions provider.
- Total headcount increased to 36,875 with a net addition of 670 employees in the quarter.
- FY27 guidance set at 10-13% constant currency revenue growth and 12.25-12.75% EBIT margin.
Financial Performance
Revenue Growth by Segment
In H1 FY25, Healthcare grew 33.6% YoY, CMT grew 22.6% YoY, and BFS grew 4% YoY (recovering from previous degrowth). For Q2 FY25, BFS contributed 33.2%, Healthcare 33.5%, CMT 21.7%, and Diverse industries 11.6% of total revenue.
Geographic Revenue Split
Revenue is highly concentrated in the US (68%) and UK/EMEA (29-32%), with the US market growing 26% YoY in Q1 FY25.
Profitability Margins
Operating EBITDA margin stood at 15.1% in FY25, consistent with FY24. Operating EBIT margin was 11.0% in FY25. PAT margins declined by 41 bps to 8.12% in FY24 due to higher interest costs.
EBITDA Margin
EBITDA margin remained stable at 15.1% in FY25 (INR 1,207.62 Cr) compared to 15.1% in FY24 (INR 956.44 Cr). Management targets a 50-75 bps EBIT expansion over the medium term.
Capital Expenditure
The company plans to furnish debt repayment of INR 80-100 Cr in FY25. Organic capex is funded through internal accruals, which are expected to be INR 500-700 Cr per annum.
Credit Rating & Borrowing
CRISIL and CARE maintain a Positive/Stable outlook. Interest coverage ratio was 7.04x to 7.3x in FY24. Finance charges increased to INR 147.87 Cr in FY25 from INR 103.38 Cr in FY24 due to higher working capital debt.
Operational Drivers
Raw Materials
Personnel/Human Capital is the primary input, representing 62.6% of total income (INR 4,995.78 Cr in FY25).
Import Sources
Talent is sourced globally from delivery centers in India, Philippines, USA, UK, and Mexico.
Key Suppliers
Not applicable for service-based BPO model; primary 'suppliers' are the global workforce of 35,997 employees.
Capacity Expansion
Current capacity includes 35,997 employees and 51 delivery centers across 10 countries as of late 2024. Expansion is driven by nearshore delivery capabilities in retail/e-commerce via the Ascensos acquisition.
Raw Material Costs
Personnel costs increased to INR 4,995.78 Cr (62.6% of revenue) in FY25 from INR 3,909.32 Cr (61.7% of revenue) in FY24, reflecting wage inflation and headcount growth.
Manufacturing Efficiency
Efficiency is measured by operating leverage and cost efficiency measures, aiming for a 50-75 bps margin improvement through automation and offshore transition.
Strategic Growth
Expected Growth Rate
14-16%
Growth Strategy
Growth will be driven by the 'FSL80' cohort (top 80 accounts) to increase share of wallet, AI infusion across all services to drive automation, and strategic acquisitions like QBSS (Revenue Cycle Management) and Ascensos (Retail/E-commerce CX).
Products & Services
Business Process Management (BPM) services, Revenue Cycle Management (RCM) for hospitals/payers, Mortgage processing, Financial Crime Compliance, and Customer Experience (CX) for retail and edtech.
Brand Portfolio
Firstsource, Ascensos, Quintessence Business Solutions and Services (QBSS).
New Products/Services
AI-driven solutions and vertical-specific language models are expected to support medium-term growth and margin unlocks.
Market Expansion
Expanding into the US Healthcare RCM market (estimated at $25 billion) and increasing nearshore delivery capabilities in the UK/Europe retail sector.
Market Share & Ranking
Prominent player in the global BPO and ITeS provider space with over 100 clients, including Fortune 500 and FTSE 100 companies.
Strategic Alliances
Acquisition of Ascensos Limited for INR 467 Cr in Q2 FY25 and QBSS in May 2024 to enhance offshore capabilities.
External Factors
Industry Trends
The BPM industry is shifting toward tech-led, offshore-centric models with AI adoption. The Healthcare RCM market is growing at double digits, and FSL is positioning to gain share from traditional players.
Competitive Landscape
Intense competition from other Indian BPO/ITeS firms and low-cost delivery centers in other countries.
Competitive Moat
Moat is built on deep domain expertise in Healthcare and BFS, a global delivery model with 35,997 employees, and long-term contracts (1-10 years) with Fortune 500 clients.
Macro Economic Sensitivity
Highly sensitive to US and UK GDP growth; slowdowns in these regions led to low 4% revenue growth in FY24.
Consumer Behavior
Structural shifts in healthcare toward value-based care are driving demand for specialized RCM services.
Geopolitical Risks
Susceptible to protectionist legislation in the US/EU that may restrict outsourcing to low-cost countries like India and the Philippines.
Regulatory & Governance
Industry Regulations
Operations must comply with US/EU data privacy laws and potential legislative changes restricting offshore outsourcing.
Taxation Policy Impact
Effective tax rate was approximately 19.7% in FY25 (INR 146.2 Cr tax on INR 740.65 Cr PBT).
Risk Analysis
Key Uncertainties
Volatility in the US mortgage market and the pace of AI disruption are key uncertainties that could impact revenue by more than 5-10%.
Geographic Concentration Risk
Extremely high concentration with ~97-100% of revenue derived from the US and UK markets.
Third Party Dependencies
High dependency on top 10 clients who account for 42.3% to 51.5% of total revenue.
Technology Obsolescence Risk
Risk of AI replacing traditional BPO tasks; FSL is mitigating this by infusing AI into its own service offerings.
Credit & Counterparty Risk
Low risk due to a client base primarily consisting of Fortune 500 and FTSE 100 companies.
