Firstsource Solutions Ltd

Firstsource Q3FY26: Strong Growth, Margin Expansion & Raised Guidance 📈

- Q3FY26 revenue reached Rs 24.4 billion (US$274 million), growing 16.2% YoY in rupee terms and 10.2% in USD terms.

- EBIT margin expanded to 11.9%, up 80 bps YoY and 40 bps QoQ, marking the fifth consecutive quarter of margin improvement.

- Adjusted net profit was Rs 2 billion, with diluted EPS of Rs 2.87, reflecting 26% YoY growth.

- Five large deals (each with ACV over $5 million) were signed in Q3, including new logos from a UK MVNO and a global online fashion retailer.

- Nine new logos added, including five strategic logos (potential $5M+ annual revenue); 10 of 20 strategic logos from past four quarters hit $5M run rate.

- Banking & Financial Services grew 9% YoY; Healthcare grew 6% YoY; Communications, Media & Tech grew 14% YoY; Diverse portfolio (utilities/retail) grew 21% YoY.

- Headcount increased to 36,689, with 80% of hires offshore/nearshore; attrition improved to 27.4% (down ~10 pp over 8 quarters).

- FY26 constant currency revenue guidance raised to 13-14% organic, or 14.5-15.5% including acquisitions; EBIT margin guidance raised to 11.5-12%.

- Awards included NelsonHall Leader in Banking/CX, Everest Leader in Banking Ops, and ISG Leader in GenAI/CX; ESG score improved to 87 (S&P Global).