Firstsource Solutions announced robust Q2FY26 results, marking the sixth consecutive quarter of double-digit revenue growth. Revenue reached Rs. 23.1 billion, a 20.1% year-over-year increase. The company secured four large deals and added 10 new logos, including 4 strategic ones. EBIT margin expanded to 11.5%, reflecting consistent margin improvements. Firstsource is optimistic about continued growth, driven by technology and strategic partnerships.
Financial Highlights
Firstsource Solutions reported a strong performance for Q2FY26, demonstrating consistent growth and improved profitability. Key highlights include:
- Revenue: Rs. 23.1 billion, up 20.1% YoY (15.2% in USD terms)
- Constant Currency Revenue Growth: 13.8% YoY
- EBIT Margin: 11.5%, a 70 bps increase YoY
- Net Profit: Rs. 1.8 billion
- Diluted EPS: Rs. 2.54
H1FY26 revenue grew 16.4% in constant currency, with EBIT up 27.4% and PAT up 27.6% year-over-year in rupee terms.
Key Business Developments
Firstsource secured four large deals in Q2FY26, each with an ACV over $5 million, including:
- Expanding collection services for a top UK retail bank.
- Selection by a top 10 North American healthcare payer for claims data capture.
- Providing first-party collection services for a leading loan subservicing provider in the US.
- Winning additional customer onboarding and account services business from a major UK communications and media company.
The company also added 10 new logos, including 4 strategic logos, and reported its deal pipeline crossed $1 billion for the first time.
Vertical Performance
- Banking and Financial Services: Grew 4% QoQ and 11% YoY in constant currency.
- Healthcare: YoY growth of 6% and QoQ growth of 3%.
- Communications, Media and Technology: Delivered 15% YoY growth in constant currency.
Strategic Investments
Firstsource is focusing on technology arbitrage and has made strategic investments in AppliedAl and Lyzr to enhance efficiency and customer experience.
Outlook
Firstsource anticipates a constant currency revenue growth of 13% to 15% for FY26 and expects to maintain an EBIT margin in the 11.25% to 12% range.
Source: BSE
