Firstsource reported a 16.2% YoY increase in revenue for Q3 FY26, reaching Rs 24.4 billion. EBIT margin improved to 11.9%. The company signed five large deals and added nine new logos. Based on this performance, Firstsource raised its constant currency revenue growth guidance for FY26 to 14.5%-15.5%, including recent acquisitions, and expects EBIT margin between 11.5% and 12%.
Financial Performance
Firstsource announced strong financial results for Q3 FY26:
- Revenue: Rs 24.4 billion, a 16.2% YoY increase (10.2% in USD terms).
- Constant Currency Revenue Growth: 10.6% YoY.
- EBIT Margin: 11.9%, up 80 basis points YoY.
- Net Profit (adjusted): Rs 2 billion.
- Diluted EPS: Rs 2.87.
The company’s revenue growth includes a contribution from the Pastdue Credit acquisition, which added approximately 2% to the YoY growth in constant currency.
Deal Wins and Client Acquisition
Firstsource secured five large deals during Q3 FY26, including:
- A leading on-demand manufacturing marketplace for account servicing.
- Additional business from a major communications company.
- A global operations partnership with a UK-based MVNO.
- A deal with a global online fashion retailer.
- A customer experience engagement with an Australian health insurer.
Nine new logos were added, five of which are considered strategic, with a potential annual revenue run rate of at least $5 million.
Vertical Performance
- Banking and Financial Services: Grew 9% YoY.
- Healthcare: Grew 6% YoY.
- Communications, Media, and Technology (CMT): Grew 14% YoY.
- Diverse Portfolio: Grew 21% YoY.
Revised Outlook
Based on its performance, Firstsource has updated its guidance for FY26:
- Constant Currency Revenue Growth: Expected to be in the range of 13% to 14% organically, and 14.5% to 15.5% including the acquisitions of Pastdue Credit Solutions and TeleMedik.
- EBIT Margin: Raised to a range of 11.5% to 12%.
Strategic Initiatives
Firstsource continues to focus on:
- Broadening its client footprint.
- Curating new growth engines.
- Leveraging technology and macroeconomic shifts.
The company is also implementing initiatives to shift to a skills-first organization with the launch of unBound, a talent platform designed to build unique skill profiles for employees.
Source: BSE
