Firstsource Solutions Ltd(FSL)

NSE: FSLBSE: 532809

₹ 291.6+0.45%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 20,324 crNext results: 29 Oct 2026Website: www.firstsource.comUpdated: 27 Oct 2026

About

Firstsource Solutions Ltd is an India-headquartered business process outsourcing company serving clients in Healthcare, Banking & Financial Services, Communications/Media/Technology, and Diverse Industries across the US, UK, and other markets. In FY26, the company crossed the US$1 billion revenue milestone, reporting full-year revenues of INR 95,564M / USD 1,082M. FSL employs 36,875 people as of Q1 FY27 and has delivered nine consecutive quarters of double-digit year-on-year constant-currency revenue growth.^[1][2][3]

Business segments

Communications, Media and Technology: 21.3% of FY26 revenue (INR 2,044 Cr); EBIT margin 18.9% in FY26.^[4]

Key operating numbers

Constant-currency revenue growth of 12.3% YoY and 2.2% QoQ in Q1 FY27; full-year FY26 CC growth was 13.6%.^[2][1]
EBIT margin reached 12.4% in Q1 FY27, up 110bps YoY and 20bps QoQ; seventh consecutive quarter of sequential margin expansion.^[2]
TTM employee attrition was 33.1% in Q1 FY27, up from 28.9% in Q1 FY26.^[2]
Total headcount of 36,875 in Q1 FY27, a net addition of 2,380 year-on-year.^[2]
Revenue per employee grew 12% over the two years to FY26 as revenue growth materially outpaced headcount growth.^[1]

Delivery mix and operations

Offshore and nearshore delivery share rose to 43.5% of revenue in Q1 FY27, up from 41.2% in Q1 FY26 and from ~31% eight quarters prior.^[2]
Approximately 80% of gross hiring additions in FY26 were at offshore and nearshore locations, a trend management expects to continue.^[1]
UK onshore headcount fell ~40% over four quarters to Q3 FY26 while South Africa headcount rose ~50% over the same period.^[5]
TeleMedik, a Puerto Rico-based provider with ~30 years of operations, was acquired to add clinical operations and utilization management capabilities for Medicare Advantage and Medicaid payers.^[5]

Deal activity and pipeline

Four large deals (ACV >US$5M) signed in Q1 FY27, the sixth consecutive quarter of four or more large-deal wins; ACV intake was the highest in the last four quarters.^[2]
17 large deals won in FY26 versus 14 in FY25 and more than double FY24 wins; exit deal pipeline exceeded US$1bn in Q4 FY26, described as the highest ever.^[1]
12 new logos added in Q1 FY27; clients with US$5M+ annual revenue run rate stood at 45, and US$10M+ at 20.^[2]

Customers and concentration

Top-5 client revenue concentration fell to 27.4% in Q1 FY27 from 29.6% in Q1 FY26; top-10 fell to 39.2% from 42.6%.^[2]
Clients with US$1M+ revenue run rate rose to 150 at end of FY26 from 116 a year earlier; US$5M+ clients rose to 42 from 30.^[1]
BFS vertical added five new logos in Q1 FY27 and grew 14% YoY and 5% QoQ in constant-currency terms, with collections demand elevated by record US consumer debt levels.^[2]

Vertical trends

Healthcare vertical grew 11% YoY but declined 2% sequentially in CC terms in Q1 FY27, as Medicare Advantage clients recalibrated program scope in response to CMS rate adjustments.^[2]
A healthcare payer BPaaS engagement was wound down in Q1 FY27 following a client leadership change, impacting expected FY27 revenue by approximately 1 - 1.5%; FSL took an exceptional charge of INR 357M (net INR 271M).^[2]
Diverse Industries revenue grew 21% YoY and 37% QoQ in constant-currency terms in Q3 FY26, rising to 15% of total revenue from 11.6% in Q2 FY26.^[5]
CMT revenues grew only 3% YoY and declined 4% QoQ in constant-currency terms in Q4 FY26, driven by timing volatility in large consumer-tech work packets.^[1]

Expansion and new capabilities

Five new growth engines launched in Q1 FY27 with dedicated leaders targeting the Middle East, South Africa, and Canada geographically, plus a US Retail and CPG practice, a marketing services offering, and a security and resiliency services business.^[2]
Strategic minority investments made in AppliedAI (large work model for end-to-end process re-engineering) and Lyzr (agentic AI platform) in Q2 FY26 to embed agentic AI into service delivery.^[6]
Pastdue Credit Solutions acquired (GBP 22M) to add debt collections capabilities and utility-sector logos in the UK; FCA approval received and integration commenced in Q3 FY26.^[6][5]

Guidance and targets

FY27 constant-currency revenue growth guidance reaffirmed at 10 - 13%, maintained even after absorbing the 1 - 1.5% BPaaS wind-down headwind.^[2]
FY27 EBIT margin guidance reaffirmed at 12.25 - 12.75%; medium-term EBIT margin target of 14 - 15% over the next 2 - 3 years, with ~50 - 75bps annual expansion as the stated framework.^[2]
Offshore and nearshore hiring expected to account for ~80% of gross additions going forward; revenue per headcount targeted to grow faster than headcount as agentic operations scale.^[2]

Market Cap

₹20,324 Cr

High / Low

₹372 / 201

Stock P/E

30.4

Price / Book

4.7

Book Value

₹63

EPS

₹9.7

No. of Shares

69.7 Cr

ROCE

16.4%

ROE

15.9%

OPM

11.8%

Debt / Equity

0.44

Sales

₹9,556 Cr

Net Profit

₹674 Cr

Promoter holding

53.7%

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Firstsource Solutions Ltd(FSL)

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Customers and concentration

Vertical trends

Expansion and new capabilities

Guidance and targets

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