Firstsource Solutions (FSL) reported a strong Q3 FY2026 with revenue up 16.2% YoY. The board declared an interim dividend of ₹5.5 per share. FSL raised its FY26 constant currency revenue growth guidance to 14.5%-15.5% and expects EBIT margin of 11.5%-12%. The company signed five large deals and added nine new logos in the quarter, highlighting strong performance across Banking and Financial Services, Healthcare, and Technology verticals.
Financial Performance
Firstsource Solutions Limited reported revenues of ₹24,431 million (US$ 274 million) for Q3 FY2026, an increase of 16.2% year-over-year (YoY).
Earnings Before Interest and Taxes (EBIT) reached ₹2,915 million, representing 11.9% of revenues, up 24.9% YoY.
Net Profit After Tax (PAT), adjusted for exceptional items, stood at ₹2,022 million, or 8.3% of revenue.
Adjusted Diluted Earnings Per Share (EPS) amounted to ₹2.87.
For the nine months ended December 31, 2025, revenues were ₹69,729 million (US$ 798 million), up 19.8% YoY and EBIT reached ₹8,078 million, or 11.6% of revenues, up 26.5% YoY.
PAT adjusted for exceptional items for the nine month period was reported as ₹5,510 million, or 7.9% of revenue, with an Adjusted EPS of ₹7.81.
The company’s Board of Directors declared an interim dividend of ₹5.50 per equity share.
Business Highlights
Firstsource signed five large deals in Q3 FY26, marking the fourth consecutive quarter with four or more large deal signings.
Key new client wins during the quarter included:
- A leading on-demand manufacturing marketplace in the US.
- One of the largest communications and media companies in the UK, expanding an existing relationship.
- A leading UK-based MVNO for global operations outsourcing.
- One of the leading global online fashion retailers.
- A large onshore customer experience engagement with a leading health insurer in Australia.
- A broking aggregator in Australia and New Zealand.
- An expanded deal with a global product design and technology company.
- A fintech company in the US.
The company added nine new logos during the quarter, including five strategic logos.
Segment Performance
Banking and Financial Services added 5 new logos, driven by a wider capabilities portfolio and leveraging consulting-led engagements.
Healthcare added 1 new logo, progressing well on large deal ramp-ups.
Communications, Media & Technology added two new logos, fueled by demand for CX and Al-led solutions from digital-native brands.
FY26 Outlook
Firstsource expects revenue growth in the range of 14.5% to 15.5% in constant currency terms for FY26. This includes a 1.5% incremental contribution from the acquisitions of Pastdue Credit Solutions and TeleMedik. The FY26 EBIT margin is projected in the 11.5% to 12% band.
Other Key Updates
Employee strength at the end of Q3FY26 stood at 36,689.
Attrition rate declined to 27.4%.
Source: BSE
