Firstsource Solutions Limited, an RP-Sanjiv Goenka Group company, reported its audited consolidated and standalone financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results on May 6, 2026, with statutory auditors Deloitte Haskins & Sells LLP expressing an unmodified audit opinion. An earnings conference call was held on May 6, 2026, with MD & CEO Ritesh Idnani and CFO Dinesh Jain presenting the results, followed by a Q&A session with analysts. The audio/video recordings and transcripts of the call are available on the company's website.

Q4 FY26 Financial Highlights

For the quarter ended March 31, 2026, Firstsource Solutions delivered consolidated revenue from operations of ₹26,130.44 million, compared to ₹21,677.68 million in Q4 FY25. On a reported basis, revenues were ₹25,835 million (US$283 million), up 19.5% YoY and 13.2% in US dollar terms. In constant currency terms, revenue grew 11.6% YoY and 3% QoQ, inclusive of the TeleMedik acquisition which contributed 1.3% to YoY constant currency growth. EBIT for the quarter stood at ₹3,143 million, a 29.8% YoY increase, with an EBIT margin of 12.2% — up 100 basis points YoY and 30 basis points QoQ, marking the sixth consecutive quarter of sequential margin expansion. Net profit after tax for Q4 FY26 came in at ₹2,052.45 million, compared to ₹1,606.86 million in Q4 FY25. Diluted EPS increased to ₹2.91 from ₹2.28 in the year-ago quarter. DSO stood at 66 days in Q4 versus 67 days in Q3.

Full-Year FY26 Consolidated Performance

For the full year ended March 31, 2026, consolidated revenue from operations grew to ₹96,161.20 million from ₹79,721.00 million in FY25. On a reported basis, revenues were ₹95,564 million (US$1,082 million), up 19.7% YoY and 13.6% in constant currency terms — crossing the billion-dollar milestone. EBIT for the year was ₹11,221 million, or 11.7% of revenues, up 27.4% YoY and within the previously guided range of 11.5% to 12%. Reported PAT stood at ₹6,744 million (INR6.7 billion), while normalized PAT (adjusted for exceptional items, including one-time Labour Codes impact) was ₹7,543 million, up 26.9% YoY. The effective tax rate for FY26 was 20.6%, within the previously guided range of 19% to 21%. Diluted EPS for FY26 was ₹9.56 versus ₹8.42 in FY25. ROCE for FY26 improved to 17.7% from 15.6% in FY25. Cash balance including investments stood at ₹3.1 billion at the end of Q4 FY26, after a dividend payout of ₹3.8 billion during the quarter. Net debt stood at ₹16.3 billion as of March 31, 2026, versus ₹13.2 billion as of March 31, 2025. OCF to EBITDA for the year was 78% and free cash flow to PAT was 160%.

Segment-Wise Revenue Performance

All four business segments reported revenue growth for FY26. The following table summarises quarterly and full-year segment performance:

During the earnings call, management provided additional colour on vertical performance. Banking and Financial Services (BFS) grew 9% YoY and 5% sequentially in constant currency terms in Q4 FY26, with demand centred on regulatory compliance, financial and economic crimes, customer experience, and cost efficiency. A key UK collections deal, which had been delayed due to regulatory approvals, received clearance and went live during the quarter. Management also noted that a leading US payments and financial services institution is partnering with Firstsource Solutions to modernize their collections operations across first-party, third-party, and legal using a digital platform embedding over 25 years of domain expertise with a built-in compliance and risk harness. Healthcare revenues grew 16% YoY and 10% sequentially in constant currency terms, with both payer and provider segments remaining resilient. The Communications, Media and Technology (CMT) vertical grew 3% YoY but declined 4% QoQ, reflecting timing of work packets and program transitions in large consumer tech engagements. The Diverse Industries portfolio grew 23% YoY but declined 8% QoQ in constant currency terms, reflecting a seasonal dip in retail following the Q3 peak.

Geographic Performance

From a geographic standpoint, North America delivered 14% YoY growth and 4% sequential growth in constant currency terms, with broad-based momentum across the company's three core verticals. Management noted that new growth opportunities are being incubated in North America, including a sales presence in Canada and an extension of UK-market capabilities in utilities and retail to the US. The TeleMedik acquisition also provides a delivery presence in Puerto Rico, a fully US-compliant lower-cost location. Europe grew 4% YoY and was flat QoQ in constant currency terms, with the deal pipeline in the region up approximately 60% over the last four quarters. Australia continued to add business with existing clients while building a new logo pipeline, with one new logo added in Q4 from that market.

Business Highlights, Deal Activity, and Client Metrics

Firstsource Solutions signed four large deals in Q4 FY26 — defined as deals with an Annual Contract Value (ACV) of over US$5 million — bringing the full-year FY26 total to 17 large deal wins, compared to 14 in FY25 and more than double the number in FY24. The company's deal pipeline exceeded US$1 billion and stood at its highest ever level at the end of Q4 FY26. Seven of the 17 large deals in FY26 came from new logos, versus five in FY25. The company added 11 new logos in Q4 FY26, including six strategic accounts. Over FY26, the company added 47 new logos and 24 strategic logos — double the strategic additions compared to FY25. Over the past eight quarters, approximately 50% of strategic logo wins have been converted into relationships exceeding US$5 million in annual revenue. Management also highlighted that the revenue share of the top five and top ten clients has come down by 8% and 12% respectively over the last eight quarters, even as those clients continue to grow at industry growth rates.

Notable deal wins in Q4 included a global leader in financial technology solutions in the US, a leading regional water utility service provider in Australia, a leading UK-based MVNO for global account servicing and customer support, a premium UK retail brand for customer experience, and a leading US mortgage lender and servicer. The company closed FY26 with 150 clients generating over US$1 million in annual revenue on a run-rate basis, an addition of 34 clients over Q4 FY25. US$10 million-plus and US$5 million-plus client counts increased by 2 and 12 respectively over the same period. Over the last two years, revenue per employee increased by 12%.

During the year, the company acquired 100% ownership in Jaye Inc. d/b/a TeleMedik on January 13, 2026, for a purchase consideration not to exceed USD 3 million. Of the purchase consideration paid, ₹57.66 million has been allocated to the fair value of identified net assets and ₹146.02 million has been allocated to goodwill. Pastdue Credit and TeleMedik together contributed approximately 1.5% to FY26 constant currency revenue growth, implying organic constant currency growth of approximately 9.8% to 9.9% for FY26 when Ascensos is also excluded.

Strategic Direction: Intelligence That Operates

During the earnings call, MD & CEO Ritesh Idnani outlined the company's evolving strategic positioning under the banner of "Intelligence that operates" — delivered through a proprietary framework called Kairos. The company described Kairos as 25 years of domain expertise encoded as executable know-how, governance guardrails, and continuous learning loops, designed to turn general-purpose AI into systems capable of running regulated, high-stakes operations. The approach is portable and composable, built to run within clients' own technology environments across whichever agents and models they choose. Management emphasised that this positions Firstsource Solutions as a partner that designs, builds, and runs AI-enabled operations in a single continuous motion — combining domain expertise, systems integration, and agentic operations under one contract with revenue tied to outcomes. A leading US financial services institution recently launched governed AI agents to streamline their collections process, with Firstsource Solutions designing, implementing, and operating the agentic operations end-to-end.

Addressing analyst questions on competitive positioning, Idnani noted that unlike diversified IT services firms that operate across siloed pillars — consulting, systems integration, and BPO — Firstsource Solutions assembles the right team around the client problem in one continuous motion, without internal boundaries. He stated that the company's deep domain understanding of regulated workflows, combined with its agility and size, allows it to underwrite outcomes and build a compounding knowledge advantage with every successive engagement. On the broader question of AI disruption to the BPO industry, Idnani highlighted three drivers sustaining growth: the expansion of the total addressable market as AI creates new scaffolding and transformation work, the ability to take market share from competitors through differentiated value propositions, and the conversion of previously insourced portfolios to outsourced engagements through creative commercial constructs.

FY27 Outlook and Management Commentary

For FY27, the company expects revenue to grow in the range of 10% to 13% in constant currency terms, with EBIT margin guided in the 12.25% to 12.75% band. Management noted that acquisitions (Pastdue Credit and TeleMedik) are expected to contribute approximately 2% to 2.5% to FY27 constant currency growth. The effective tax rate for FY27 is expected to be in the 20% to 22% range. Management indicated that growth is expected to be broadly evenly spread across the four quarters of FY27, rather than back-ended. The company's medium-term aspiration remains to reach an EBIT margin band of 14% to 15%. The hedge book as of March 31, 2026 comprised average GBP coverage of GBP54.5 million for the next 12 months at an average rate of 117 to the pound, and USD coverage of US$107.8 million at an average rate of 91.5.

CFO Dinesh Jain, responding to analyst questions on debt levels, noted that net debt increased by approximately ₹200 crores in the current year compared to approximately ₹700 crores in the prior year, and that the primary mode of capital allocation remains paying 40% to 50% of cash flows to shareholders with the remainder utilized for acquisitions or growth. He affirmed that cash flow generation remains healthy and that the company retains buffer capacity for further acquisitions if required. Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource Solutions, stated that FY26 was a defining year marked by strong financial performance and deeper strategic relevance with clients. The Board also approved a Scheme of Amalgamation for the merger of Firstsource Process Management Services Limited and Accunai India Services Private Limited with the company, subject to requisite approvals.

Awards and Recognitions

During Q4 FY26, Everest Group recognised Firstsource Solutions as a leader in its Healthcare Payer Intelligent Operations PEAK Matrix of 2026. The company was also recognised as a leader in NelsonHall's Healthcare Payer Agility and Innovation NEAT evaluation for 2026, and was named among the frontier firms in Microsoft's Frontier Firms of India and Southeast Asia list. ISG featured Firstsource Solutions in its Booming 15 list for the sixth consecutive quarter, based on the annual value of commercial contracts awarded over the last 12 months. On the people front, the company was recognised in the Corporate Equality Index, the Workplace Equality Index, and with the ATD BEST Award. On sustainability, the company participated in CDP and EcoVadis, receiving a climate and water rating of 'B' each and a supplier engagement rating of 'A' from CDP. EcoVadis awarded a bronze badge with a score of 70 on 100, placing the company in the top 81st percentile.

Firstsource Solutions Limited has announced the schedule for analyst and institutional investor meetings with its Key Managerial Personnel (KMP). The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has outlined that these sessions are intended to reiterate industry and company-specific developments that are already in the public domain.

Meeting Schedule

The company has planned two specific sessions for May 13, 2026. Both meetings are categorized as one-on-one interactions and will be held physically in Mumbai. The schedule includes engagements with prominent financial institutions.

Disclosure and Compliance

Firstsource Solutions clarified that no unpublished price-sensitive information (UPSI) will be shared during these meetings. The company emphasized that the discussions will focus on developments already available to the public. The schedule provided is subject to changes due to exigencies. The disclosure was officially signed by Pooja Suresh Nambiar, Company Secretary of Firstsource Solutions Ltd.