Firstsource Solutions reported a strong Q2 FY26, with revenue up 20.1% YoY to ₹23,122 million. EBIT rose 28.1% YoY to ₹2,665 million. The company added over 1,500 employees and signed four large deals. They reiterate their constant currency revenue growth guidance of 13-15% for FY26. Key growth was driven by Banking and Financial Services and Healthcare verticals.
Financial Performance
Firstsource Solutions (FSL) announced its Q2 FY26 results, showcasing significant growth:
- Revenue: Increased by 20.1% year-over-year to ₹23,122 million (US$ 265 million).
- EBIT: Reached ₹2,665 million, representing 11.5% of revenues, a 28.1% increase year-over-year.
- Profit After Tax (PAT): Stood at ₹1,795 million, or 7.8% of revenue.
- Diluted Earnings Per Share (EPS): Recorded at ₹2.54.
The company also reported a Free Cash Flow (FCF) to PAT conversion rate of 117% for the quarter.
Half-Year Performance
The performance for the six months ending September 30, 2025, was equally robust:
- Revenue: Increased by 21.9% year-over-year to ₹45,299 million (US$ 524 million).
- EBIT: Totaled ₹5,163 million, or 11.4% of revenues, a 27.4% increase year-over-year.
- Profit After Tax (PAT): Amounted to ₹3,488 million, or 7.7% of revenue.
- Diluted Earnings Per Share (EPS): Reached ₹4.95.
The FCF/PAT conversion for the first half of the fiscal year was 155%.
Business Highlights
Key achievements and developments highlighted in the announcement include:
- Addition of over 1,500 employees, bringing the total employee strength to 35,997.
- Signed four large deals during the quarter.
- Added 10 new logos, including four strategic ones.
New Executive Appointment
Ms. Jagriti Bhattacharya has been appointed as Executive Vice President and General Counsel of Firstsource Solutions, effective November 4, 2025.
Merger Announcement
Firstsource is proceeding with a scheme of merger involving its wholly-owned subsidiaries, Firstsource Process Management Services Limited (FPMSL) and Accunai India Services Private Limited (Accunai), with Firstsource Solutions Limited (FSL) as the transferee company. This is subject to shareholder and regulatory approvals.
Source: BSE
