Firstsource Solutions reported strong Q2 Fiscal 2026 results, with revenue up 20.1% YoY to ₹23,122 million. EBIT increased by 28.1% YoY to ₹2,665 million, representing 11.5% of revenues. Profit After Tax reached ₹1,795 million, or 7.8% of revenue, with diluted Earnings Per Share at ₹2.54. The company reiterated its 13-15% FY26 constant currency revenue growth guidance.
Financial Performance Highlights
Firstsource Solutions announced its Q2 Fiscal 2026 consolidated financial results, showcasing significant growth across key metrics:
- Revenue: Increased to ₹23,122 million (US$ 265 million), a 20.1% year-over-year increase.
- EBIT: Reached ₹2,665 million, representing 11.5% of revenues, up 28.1% compared to the previous year.
- Profit After Tax (PAT): Stood at ₹1,795 million, accounting for 7.8% of the total revenue.
- Earnings Per Share (EPS): Diluted EPS reported at ₹2.54.
Half-Yearly Performance
The company’s performance for the half-year ended September 30, 2025, also reflected strong financials:
- Revenue: Totaled ₹45,299 million (US$ 524 million), up by 21.9% YoY.
- EBIT: Increased to ₹5,163 million, which is 11.4% of revenues, a 27.4% YoY increase.
- Profit After Tax (PAT): Recorded at ₹3,488 million, representing 7.7% of the total revenue.
- Earnings Per Share (EPS): Diluted EPS reached ₹4.95.
Strategic Developments
The company secured four large deals during Q2 Fiscal 2026, pushing the deal pipeline beyond US$1 billion ACV. Significant new clients were also added, demonstrating diversification and strategic growth. These strategic developments underscore Firstsource’s enhanced capabilities and position in the market.
New Business Wins & Expansions
Key wins include:
- Expansion in collection services with a large UK-based retail bank, marking the company’s largest deal for collection services in the UK.
- Selection by a leading US loan subservicing provider for first-party collections.
- Partnership with a Top 10 US healthcare payer for claims data capture, leveraging Sympraxis.
- Expanded relationship with one of the Top10 national health plan in the US for provider network operations, automation, and data management.
- Selection by a leading health insurer in the US for benefits configuration and documentation generation.
- Selected by one of the leading BCBS plans in the US to improve claims and customer experience.
- Awarded additional business from one of the largest communications and media companies in the UK.
- Selected by one of the largest global consumer tech companies for customer support and content moderation services.
Executive Commentary
Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource Solutions, noted that the company’s performance reflects a strong balance of growth, resilience, and disciplined execution. He highlighted the company’s ability to secure strategic engagements and deepen client relationships, contributing to the success of their OneFirstsource strategy.
Operational Strength
Employee strength reached 35,997 by the end of Q2 Fiscal 2026, with a net addition of 1,502 employees during the quarter. Offshore and nearshore hires constituted 80% of gross additions, contributing to a significant improvement in the attrition rate, which declined to 28.0%.
Guidance
Firstsource Solutions reiterated its revenue growth outlook for FY26, expecting growth in the range of 13% to 15% in constant currency terms and an EBIT margin between 11.25% and 12%.
Source: BSE
