Firstsource Solutions (FSL) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached ₹24,431 million (US$274 million), up 16.2% year-on-year, with EBIT at ₹2,915 million (11.9% margin) and adjusted PAT at ₹2,022 million (8.3% margin); five large deals were signed, including two from new clients, and nine new logos were added.

• Strategic acquisitions of Past Due Credit and TeleMedik were completed, strengthening collections and healthcare capabilities.

• For the nine months ended December 31, 2025, revenue was ₹69,729 million, up 19.8% year-on-year, with EBIT at ₹8,078 million (11.6% margin) and adjusted PAT at ₹5,510 million (7.9% margin).

• Interim dividend of ₹5.50 per share declared for FY26.

• Recognized as a leader in multiple industry analyst reports and achieved top global ESG ranking in professional services.

Financial highlights

• EBIT margin for Q3 was 11.9%, up 80bps year-on-year and 40bps sequentially, with operating profit up 24.9% year-on-year.

• Adjusted diluted EPS for Q3 FY26 was ₹2.87; FCF/adjusted PAT at 164% for Q3 and 159% for nine months.

• Net debt was ₹11.7 billion as of December 31, 2025; cash balance stood at ₹4 billion.

• Operating cash flow for 9MFY26 was ₹9,665 million, up from ₹4,936 million in the prior year period.

• Interim dividend of ₹5.5 per share declared.

Outlook and guidance

• FY26 constant currency revenue growth guidance raised to 14.5%-15.5%, including 1.5% from acquisitions.

• EBIT margin guidance for FY26 is 11.5%-12%, with a long-term target of 14%-15% over the next 3-4 years.

• Q4 expected to see continued sequential growth, with a robust deal pipeline above $1 billion.