Firstsource Solutions (FSL) Q4 24/25 earnings summary

Executive summary

• Achieved US$1 billion annualized revenue run rate in FY25, four quarters ahead of target, with FY25 revenue at INR 79.8 billion (US$944 million), up 25.9% year-over-year, and Q4 revenue at INR 21.6 billion (US$250 million), up 29.4% year-over-year.

• Secured 14 large deals in FY25, including the largest-ever healthcare BPaaS contract, and expanded client base with 43 new logos and strategic acquisitions.

• Launched UnBPOTM and Agentic AI Studio, focusing on AI-driven transformation and non-linear business models.

• Ended FY25 with 34,651 employees, 80% of net additions offshore/nearshore, and attrition improved to 29.8%.

• Recognized for ESG, sustainability, and workplace excellence, including S&P Global Sustainability Yearbook and Great Place to Work® awards.

Financial highlights

• FY25 EBIT was INR 8.8 billion (11.0% margin), up 26.5% YoY; Q4 EBIT was INR 2.4 billion (11.2% margin), up 32.4% YoY.

• FY25 profit after tax was INR 5.94 billion (7.4% margin), up 21.7% YoY; Q4 PAT was INR 1.6 billion, up 22.6% YoY (normalized).

• Diluted EPS for FY25 was 8.42; Q4 EPS was 2.28.

• EBITDA for FY25 was INR 12.1 billion (15.1% margin), up 26.3% YoY; Q4 EBITDA margin was 15.4%.

• Net margin for FY25 was 7.4%; operating cash flow for FY25 was INR 7.0 billion.

Outlook and guidance

• FY26 revenue growth guidance is 12–15% in constant currency; EBIT/operating margin guidance is 11.25–12%.

• Inorganic contribution to FY26 guidance is 3%; for FY25, it was 7%.

• Margin improvement targeted through 37 levers across nine operational areas, including right-shoring, automation, and cost optimization.