Firstsource Solutions (FSL) reported its Q2 fiscal 2026 results, showcasing revenue of ₹23,122 million, a 20.1% YoY increase. The company added over 1,500 net new employees and secured four large deals. FSL reiterates its revenue growth guidance of 13-15% in constant currency for fiscal 2026 and deal pipeline crosses US$1bn ACV. Attrition declined by 12ppt over the last eight quarters to 28.0%.
Financial Performance
Firstsource Solutions (FSL) announced its Q2 fiscal 2026 results, revealing sustained growth and strategic wins:
- Revenue: ₹23,122 million (US$ 265 million), up 20.1% YoY
- EBIT: ₹2,665 million, or 11.5% of revenues, a 28.1% YoY increase
- Profit After Tax (PAT): ₹1,795 million, representing 7.8% of revenue
- Diluted Earnings Per Share (EPS): ₹2.54
- FCF/PAT: 117%
Key Business Highlights
Firstsource Solutions has secured new deals and expanded relationships during Q2 fiscal 2026:
- Signed four large deals in Q2, continuing a streak of large deal wins.
- Added 10 new logos, including four strategic logos.
Mergers and Amalgamations
A scheme of merger has been proposed through amalgamation, involving Firstsource Process Management Services Limited (FPMSL) and Accunai India Services Private Limited (Accunai) with FSL. These entities are wholly-owned subsidiaries of Firstsource Solutions Limited. This merger is subject to approvals from Shareholders, the National Company Law Tribunal, and other regulatory bodies.
Workforce and Attrition
Firstsource Solutions increased its employee strength, while significantly reducing attrition:
- Employee strength reached 35,997 at the end of Q2, a net increase of 1,502 employees.
- Attrition rate further declined to 28.0%, marking a 12ppt improvement over the last eight quarters.
Fiscal Year 2026 Outlook
Firstsource Solutions projects strong revenue growth for fiscal year 2026:
- Expects revenue growth in the range of 13% to 15% in constant currency terms.
- Anticipates EBIT margin in the 11.25% to 12% band.
Executive Appointment
Ms. Jagriti Bhattacharya has been appointed as Executive Vice President and General Counsel of the Company. Her appointment is based on the recommendation of the Nomination and Remuneration Committee, making her a Senior Management Personnel of the Company.
Source: BSE