Firstsource Solutions (FSL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached ₹22,177 million ($259M), up 23.8% YoY and 2.6% sequentially, with EBIT of ₹2,498 million (11.3% margin) and PAT of ₹1,693 million (7.6% margin); diluted EPS at ₹2.40.

• EBIT margin improved to 11.3%, marking four consecutive quarters of margin expansion.

• Net profit was ₹1,693 million, up 25.2% YoY, with diluted EPS at ₹2.40.

• Four large deal wins and 17 new client additions, including major deals in healthcare, utilities, fintech, and telecom.

• Recognized among top global BPS providers and for ESG leadership; employee base at 34,495 with attrition at 28.9%.

Financial highlights

• Revenue grew 23.8% YoY in INR, 20.7% YoY in USD, and 19.2% YoY in constant currency, reaching ₹22,177 million.

• EBIT margin at 11.3%, up 10 bps QoQ and 30 bps YoY; EBITDA margin at 15.7% (up 60bps YoY).

• Net profit at ₹1,693 million, up 25.2% YoY; diluted EPS at ₹2.40.

• OCF to EBITDA at 102%, FCF to PAT at 196%, both highest in six quarters; free cash flow up 135% sequentially.

• DSO reduced to 65 days from 70 days QoQ; cash balance at ₹3,100 million.

Outlook and guidance

• FY26 constant currency revenue growth guidance raised to 13–15% (previously 12–15%), excluding Pastdue Credit Solutions.

• EBIT margin guidance maintained at 11.25%–12% for FY26.

• Expect continued margin expansion of 50–75 bps annually.

• Guidance excludes contribution from Pastdue Credit Solutions pending regulatory approval.

• Healthy deal pipeline and strong client additions support confidence in growth trajectory.