Firstsource Solutions Limited announced its financial results for the second quarter of FY27. The company reported a revenue of INR 28.3 billion, an increase of 22.2% year-on-year. EBIT margin stood at 12.5%. Notably, Firstsource has raised the lower end of its FY27 revenue guidance to 10.5%-13% in constant currency terms and reaffirmed its EBIT margin guidance at 12.25%-12.75%.
Firstsource Solutions Limited Reports Q2 FY27 Earnings and Outlook
Firstsource Solutions Limited has released its financial results for the second quarter of FY27, reporting a significant increase in revenue and a steady margin performance. The company’s proactive strategies and execution have led to a revision in its full-year revenue outlook.
Financial Highlights for Q2 FY27
Firstsource reported a revenue of INR 28.3 billion for Q2 FY27, marking a 22.2% year-on-year growth and a 3.7% sequential increase. In US dollar terms, this translates to USD 296 million. The company also achieved an EBIT margin of 12.5%, up 100 basis points year-on-year and 10 basis points quarter-on-quarter, demonstrating consistent margin expansion for the eighth consecutive quarter. Profit after tax for the quarter was INR 2.3 billion.
First Half (H1) FY27 Performance
For the first half of FY27, Firstsource’s revenue grew 12.3% in constant currency terms. EBIT saw a substantial increase of 33.4% year-on-year, with EBIT margin at 12.4%. Adjusted profit after tax grew by 30.4% year-on-year.
Business and Vertical Performance
The company highlighted strong deal wins, including four large deals in Q2, two of which were from new logos, and a total of 17 new logos added during the quarter. The BFS vertical showed a robust growth of 19% year-on-year, while the healthcare vertical experienced a slight decline sequentially. The CMT vertical grew 6% year-on-year, and the utilities and retail businesses collectively grew 25% year-on-year.
Geographical Performance
North America grew 6% year-on-year, led by BFS. Europe delivered a strong quarter with revenues growing 27% year-on-year, driven by BFS and momentum in CMT. Australia also saw significant growth of 50% year-on-year.
Outlook for FY27
Based on its H1 performance and pipeline visibility, Firstsource has raised the lower end of its FY27 revenue guidance. The company now expects constant currency revenue growth of 10.5% to 13%, compared to the previous guidance of 10% to 13%. The EBIT margin guidance remains firm at 12.25% to 12.75%. Management expressed confidence in continued growth for the second half of the fiscal year.
People and Recognitions
Firstsource expanded its workforce to 39,937 employees, a net increase of 3,062 during the quarter. The company also received several recognitions, including being featured as a leader in HFS’s non-linearity index and being recognized as a leader in generative AI and agentic AI services by ISG.
Source: BSE
