Firstsource Solutions Limited, a global provider of Business Process Services (BPS), has announced a significant move to strengthen its position in the UK market. The company has signed an agreement to acquire Pastdue Credit Solutions, a prominent UK-based debt collection agency.

Acquisition Details

Firstsource Solutions UK Limited, a wholly-owned subsidiary of Firstsource Solutions, will purchase 100% ownership of Pastdue Credit Solutions. The acquisition is subject to Financial Conduct Authority (FCA) approval and aims to expand Firstsource's presence in utilities, telecom, and public sector segments across the UK.

Strategic Rationale

This strategic move is aimed at bolstering Firstsource's offerings in the utilities, telecommunications, and public sectors across the UK. Pastdue Credit Solutions brings deep expertise in first- and third-party collections, particularly in financial services, utilities, and the public sector.

Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource, commented on the acquisition: "This move underscores our long-standing commitment to UK employment. We continue to believe that investing in local talent and infrastructure is integral to building a long-term sustainable business."

Market Opportunity

The acquisition comes at a crucial time for the UK collections market. With rising consumer debt and a growing role for private agencies in public sector collections, the market opportunity is estimated at over £1.9 billion. Firstsource aims to leverage its digital-first, AI-driven capabilities alongside Pastdue Credit Solutions' local expertise to capitalize on this opportunity.

About Pastdue Credit Solutions

Founded in 2005, Pastdue Credit Solutions is an FCA-registered UK-based collections agency. The company provides white-label, early arrears, and debt collections & recovery services to a diverse client base, including major banks, utility providers, telecommunications companies, and government bodies.

Financial Performance

Pastdue Credit Solutions has shown strong financial performance in recent years:

Closing Remarks

Phil Grant, Chairman of Pastdue Credit Solutions, expressed enthusiasm about joining Firstsource: "This partnership has the potential to enable a new and exciting chapter for our people, our valued clients, and our future."

The completion of the acquisition remains subject to FCA approval and clearance under the National Security and Investment Act 2021. This move is expected to enhance Firstsource's capabilities in the UK market and create new opportunities for growth in the debt collection sector.

Firstsource Solutions Limited , a global leader in business process management services, has reported robust financial results for the fourth quarter and fiscal year 2025, marking significant milestones in its growth journey.

Q4 FY2025 Highlights

For the quarter ended March 31, 2025, Firstsource Solutions posted impressive year-over-year growth:

• Revenue reached ₹21,615.00 million (US$250.00 million), up 29.4%
• EBIT (Earnings Before Interest and Taxes) stood at ₹2,422.00 million, a 32.4% increase, with a margin of 11.2%
• Profit After Tax (PAT) grew by 22.6% to ₹1,607.00 million, representing 7.4% of revenue
• Diluted Earnings Per Share (EPS) improved to ₹2.28

FY2025 Performance

The company's full-year results for FY2025 demonstrated strong growth across key financial metrics:

• Annual revenue climbed to ₹79,803.00 million (US$944.00 million), a 25.9% increase year-over-year
• EBIT rose by 26.5% to ₹8,806.00 million, maintaining a margin of 11.0%
• PAT grew by 21.7% to ₹5,945.00 million, accounting for 7.4% of revenues
• Diluted EPS for the year reached ₹8.42

Strategic Achievements and Business Highlights

Firstsource Solutions achieved several notable milestones during Q4 and FY2025:

• Reached a US$1 billion annualized revenue run-rate, marking a significant milestone in the company's growth trajectory
• Secured five large deals in Q4, bringing the total to 14 large deals for FY2025, resulting in the highest Annual Contract Value (ACV) intake in the company's history
• Added 7 new logos in Q4, totaling 43 new logos for FY2025
• Launched the innovative UnBPO™ approach, redefining traditional Business Process Outsourcing models
• Introduced the Agentic AI Studio, aligning with the UnBPO™ strategy to transform work processes

Operational Developments

• The company's total headcount reached 34,651 by the end of FY2025, with a net addition of 6,711 employees during the year
• Trailing 12-month attrition rate improved to 29.8% in Q4, down from 31.4% in the previous quarter
• Delivered over 200,000 digital learning hours in FY2025, focusing on GenAI, automation, and domain-specific capabilities

Future Outlook

For FY2026, Firstsource Solutions has provided a positive outlook:

• Expected revenue growth of 12% to 15% in constant currency terms
• Projected operating margins in the range of 11.25% to 12%

Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource Solutions, commented on the results: "FY25 has been a year of sustained momentum and strategic progress for Firstsource. I am delighted to share that we achieved US$1bn annualized revenue run-rate – a landmark milestone in our transformational journey. Six consecutive quarters of sequential revenue growth and securing significant large deals is a clear validation of our relevance and value in a rapidly evolving market."

As Firstsource Solutions continues to expand its global footprint and innovate with AI-driven solutions, the company appears well-positioned for continued growth in the evolving business process management landscape.