Firstsource Solutions (FSL) Q4 25/26 earnings summary

Executive summary

• Achieved FY26 revenue of $1.082 billion, up 19.7% YoY, with normalized PAT up 26.9% and EBIT margin at 11.7%.

• Q4FY26 revenue reached ₹25,835 million ($283 million), up 19.5% YoY, with EBIT margin at 12.2% and PAT at ₹2,052 million.

• Signed 17 large deals in FY26, including 4 in Q4; added 47 new clients, doubling strategic additions YoY.

• Robust deal pipeline exceeding $1 billion, with five consecutive quarters of four or more large deal wins.

• Attrition improved to 29.7%, with closing headcount at 36,205.

Financial highlights

• FY26 consolidated revenue: ₹95,564 million (US$1,082 million), up 19.7% YoY; EBIT: ₹11,221 million (11.7% margin), up 27.4% YoY.

• FY26 PAT: ₹6,744 million; normalized PAT: ₹7,543 million (7.9% margin); diluted EPS: 9.56.

• Q4FY26 EBIT: ₹3,143 million (12.2% margin), PAT: ₹2,052 million; Q4 diluted EPS: 2.91.

• Operating cash flow for FY26: ₹12,140 million; free cash flow to PAT: 160%.

• Net debt at March 31, 2026: ₹16,300 million; cash balance: ₹3,100 million; dividend payout: ₹3,801 million.

Outlook and guidance

• FY27 constant currency revenue growth guidance: 10–13%.

• FY27 EBIT margin guidance: 12.25–12.75%.

• Long-term EBIT margin target: 14–15% in the next couple of years; effective tax rate expected at 20–22% for FY27.

• Medium-term aspirations include double-digit revenue growth and 50–75bps EBIT margin expansion.