Firstsource Solutions reported a robust Q1 FY27 with revenue growth of 22.9% year-on-year, reaching INR27.2 billion. The company also achieved an EBIT margin of 12.4%, marking its seventh consecutive quarter of margin improvement. Firstsource reaffirmed its full-year revenue growth guidance of 10% to 13% and its EBIT margin target of 12.25% to 12.75% for FY27, demonstrating sustained operational strength and confidence in its strategic direction.
Firstsource Solutions Reports Strong Q1 FY27 Performance
Firstsource Solutions Limited has announced its financial results for the first quarter of FY27, showcasing significant growth and operational efficiency. The company reported a year-on-year revenue increase of 22.9%, bringing the total revenue to INR27.2 billion. This marks the ninth consecutive quarter of double-digit revenue growth and the eleventh straight quarter of sequential revenue growth.
Key Financial Highlights
- Revenue Growth: Achieved 22.9% year-on-year and 5.5% quarter-on-quarter growth, totaling INR27.2 billion. In constant currency terms, this represents 12.3% year-on-year and 2.2% quarter-on-quarter growth.
- EBIT Margin: The EBIT margin stood at 12.4%, an improvement of 110 basis points year-on-year and 20 basis points quarter-on-quarter. This is the seventh consecutive quarter of margin expansion.
- Profitability: Adjusted net profit was INR2.2 billion, with diluted EPS at INR2.36.
- Deal Wins: Secured four large deals in the quarter, marking the sixth consecutive quarter of four or more such wins. The Annual Contract Value (ACV) intake was the highest in the last four quarters.
Strategic Focus and Outlook
Ritesh Idnani, MD & CEO, highlighted the company’s focus on sustainable transformation through execution and leveraging domain expertise and digital capabilities. The company is seeing strong client interest in AI-led solutions across its key verticals, including Banking and Financial Services, Healthcare, and CMT. Firstsource has also expanded its partner ecosystem, collaborating with hyperscalers and startups to enhance its offerings.
Looking ahead, Firstsource reaffirmed its full-year guidance for FY27, expecting constant currency revenue growth of 10% to 13% and an EBIT margin band of 12.25% to 12.75%. The company expressed confidence in its healthy deal pipeline and the momentum from new logo wins to offset any potential impacts from specific client program adjustments.
Exceptional Items
During the quarter, the company recognized exceptional charges totaling INR717 million (net of taxes INR563 million), primarily relating to a healthcare BPaaS engagement program termination, a provision for regulatory penalty indemnification, and fair value adjustment on contingent consideration for an acquisition. These items are non-recurring and do not reflect the underlying operating performance of the business.
Vertical Performance
- Banking and Financial Services (BFS): Grew 14% year-on-year and 5% sequentially in constant currency terms, adding five new logos.
- Healthcare: Revenues grew 11% year-on-year but declined 2% sequentially. The company added four new logos in this segment.
- CMT: Revenues grew 6% year-on-year and 9% quarter-on-quarter, adding two new logos.
- Diverse Portfolio: Grew 27% year-on-year and was flat sequentially, adding one new logo.
Geographical Commentary
- North America: Delivered 8% year-on-year growth and was flat sequentially.
- Europe: Grew 18% year-on-year and 6% quarter-on-quarter in constant currency terms.
- Australia: Revenue doubled on a year-on-year basis.
Source: BSE
