Firstsource Solutions Limited shareholders approved the company’s audited financial results for FY26 and confirmed an interim dividend payout during its 25th Annual General Meeting (AGM) held on August 6, 2026. The meeting, chaired by Chairman Dr. Sanjiv Goenka, also authorized the reappointment of Mr. Pradip Kumar Khaitan as a Non-Executive, Non-Independent Director, including a special resolution to allow his continuation in office beyond the statutory retirement age of 75 years.

The AGM commenced at 10:00 a.m. IST and concluded at 10:44 a.m., conducted via Video Conferencing (VC) and Other Audio Video Means (OAVM) in compliance with Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI) guidelines. A total of 96 members attended the meeting, with one member represented through an authorized representative. The requisite quorum was present, enabling the transaction of all ordinary and special business items.

Key Resolutions Passed

The Board placed four items for shareholder consideration, all requiring approval via remote e-voting or voting during the meeting. The resolutions covered ordinary business related to financial adoption and dividend confirmation, as well as special business regarding director tenure.

Ms. Pooja Nambiar, Company Secretary, briefed members on procedural aspects, noting that e-voting facilities remained available for 15 minutes post-meeting conclusion. The Chairman addressed pre-registered member queries before voting commenced.

Voting Process and Compliance

In accordance with Section 108 of the Companies Act, 2013 and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company facilitated remote e-voting from August 1, 2026, at 9:00 a.m. IST to August 5, 2026, at 5:00 p.m. IST. Members who did not vote remotely could cast their votes electronically during the AGM and for 15 minutes thereafter.

The filing confirms adherence to Regulation 30 of the SEBI LODR Regulations, 2015, for disclosure purposes. The Scrutinizer’s Report on the voting outcomes will be submitted to the National Stock Exchange of India Limited and BSE Limited upon receipt, with results subsequently published on the company’s website.

Firstsource Solutions delivered a robust start to FY27, reporting an adjusted profit after tax (PAT) of ₹2,222 million for the quarter ended June 30, 2026 (Q1FY27), marking a 31.2% year-on-year increase from ₹1,693.25 million in Q1FY26. The global business process management firm’s performance was underpinned by strong deal inflows and operational efficiency, with consolidated revenue from operations reaching ₹27,249 million (US$288 million), up 22.9% YoY. While the reported PAT declined slightly by 2.0% to ₹1,659.17 million due to exceptional charges of ₹716.86 million related to client contract terminations and regulatory indemnification costs, the underlying operational strength remains evident through expanding margins and consistent revenue growth.

The Board of Directors approved the audited standalone and consolidated financial results on August 6, 2026. Deloitte Haskins & Sells LLP served as the statutory auditor, issuing an unmodified opinion on the statements prepared under Ind AS 34 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also announced that its associate, Nanobi Data and Analytics Private Limited, recorded nil net loss for the quarter. Management highlighted that the exceptional charges are non-recurring and do not reflect the core operational trajectory, which continues to benefit from AI-led transformation services and strategic account expansions.

Consolidated Financial Performance

Firstsource Solutions demonstrated significant margin expansion, with earnings before interest and tax (EBIT) rising to ₹3,367 million, up 34.8% year-on-year. The EBIT margin improved by 110 basis points to 12.4% from 11.3% in the prior year period, reflecting effective cost management despite rising employee benefit expenses. Sequentially, the EBIT margin expanded by 20 basis points from 12.2% in Q4FY26. Revenue growth was supported by higher deal wins and expansion in existing accounts across key verticals, particularly in Banking and Financial Services and Healthcare.

Employee benefits expense, the largest cost component, increased to ₹15,315.67 million from ₹13,207.01 million in the prior year period, reflecting workforce expansion. Depreciation and amortization rose to ₹1,146.36 million from ₹972.47 million. Finance costs remained relatively stable at ₹517.54 million.

Segment-wise Breakdown

The Banking and Financial Services segment led revenue growth, contributing ₹9,137.76 million, up from ₹7,224.89 million in Q1FY26. The Healthcare segment followed closely with ₹9,080.49 million in revenue, compared to ₹7,418.43 million previously. Communication, Media and Technology generated ₹5,662.03 million, while Diverse Industries contributed ₹3,637.23 million. The company secured multiple large deals in the quarter, including transformative contracts in UK pensions administration and US healthcare services, underscoring sustained demand for its AI-led transformation services.

What the Numbers Show

The divergence between reported PAT and adjusted PAT highlights the impact of non-recurring exceptional items on the bottom line. While reported net profit declined slightly by 2.0% year-on-year, the adjusted PAT grew substantially by 31.2%, indicating robust underlying operational efficiency. The sequential improvement in EBIT margin to 12.4% from 12.2% suggests continued progress in cost management despite rising employee benefit expenses. The exceptional charge of ₹716.86 million serves as a reminder of execution risks in large-scale client engagements, though management remains optimistic about recovery through contractual entitlements. Client concentration risk appears to be moderating, with top five clients contributing 27.4% of total revenues, down from 29.6% in Q1FY26.

Standalone Results and Outlook

On a standalone basis, Firstsource Solutions reported total income of ₹8,940.47 million and net profit after tax of ₹2,067.91 million for Q1FY27, compared to ₹6,942.09 million and ₹1,352.18 million respectively in Q1FY26. The company closed the quarter with a headcount of 36,875 employees and a trailing twelve-month (TTM) voluntary attrition rate of 33.1%. Looking ahead, Firstsource Solutions reiterated its full-year guidance for FY27, expecting constant currency revenue growth in the range of 10% to 13%. The company also projected an EBIT margin band of 12.25% to 12.75% for the fiscal year. Chairman Dr. Sanjiv Goenka emphasized the company's focus on building differentiated capabilities to address structural shifts in the industry, particularly driven by AI adoption in enterprise operations.