Firstsource Solutions (FSL) reported a robust Q2 FY26, with revenue up 20.1% YoY to ₹23,122 million and EBIT increasing 28.1% YoY to ₹2,665 million. The deal pipeline now exceeds US$1 billion ACV. FSL reiterates its FY26 constant currency revenue growth guidance of 13-15%. The company added 1,502 employees in the quarter, and its attrition rate continues to decline.
Financial Performance
Firstsource Solutions (FSL) announced its Q2 FY26 results, showcasing significant year-over-year growth:
- Revenue: Increased by 20.1% year-over-year to ₹23,122 million (approximately US$ 265 million).
- EBIT: Reached ₹2,665 million, representing 11.5% of revenues and a 28.1% increase year-over-year.
- Profit After Tax (PAT): Stood at ₹1,795 million, or 7.8% of revenue.
- Diluted Earnings Per Share (EPS): Reported at ₹2.54.
- FCF/PAT: Maintained a strong level at 117%.
Half-Year Performance
The company’s performance for the half-year ending September 30, 2025, was equally impressive:
- Revenue: Increased to ₹45,299 million (US$ 524 million), up 21.9% YoY.
- EBIT: Climbed to ₹5,163 million, or 11.4% of revenues, a 27.4% YoY increase.
- Profit After Tax (PAT): Reported at ₹3,488 million or 7.7% of revenue.
- Diluted Earnings Per Share (EPS): Recorded at ₹4.95.
- FCF/PAT: Achieved a level of 155%.
Key Business Developments
Firstsource highlighted the following business achievements:
- Signed four large deals in Q2 (July-September) of FY26.
- Added 10 new clients.
New Client Engagements
New client wins and expanded partnerships include:
- Expanded collection services with a large UK-based retail bank.
- Selected by a leading US loan subservicing provider for first-party collections.
- Partnered with a Top 10 US healthcare payer for claims data capture services.
- Expanded relationship with one of the Top 10 national health plan in the US for provider network operations.
- Selected by a leading health insurer in the US for benefits configuration.
- Selected by one of the leading BCBS plans in the US to improve claims and customer experience.
- Awarded additional business from one of the largest communications and media companies in the UK.
- Selected by one of the largest global consumer tech companies for customer support and content moderation services.
Employee and Attrition Details
- Employee strength reached 35,997, adding 1,502 in Q2.
- Offshore and nearshore hires accounted for 80% of gross additions.
- Attrition rate further declined to 28.0%.
FY26 Outlook
Firstsource expects revenue to grow by 13% to 15% in constant currency terms for FY26. This outlook excludes any contribution from Pastdue Credit Solutions. The company projects its FY26 EBIT margin to be in the 11.25% to 12% band.
Standalone Financial Results
The standalone financial results demonstrate the company’s core operational strength. Total income stood at ₹6,850.37 million for Q2 and ₹13,792.46 million for the six months ended September 30, 2025. Net profit after tax was ₹980.45 million and ₹2,332.63 million for the respective periods.
Source: BSE
