Firstsource Solutions Limited (NSE: FSL, BSE: 532809), a leading global provider of business process management services, has announced a strategic investment in Applied AI, an AI workflow automation platform. This move aligns with Firstsource's UnBPO™ strategy, which aims to transform traditional outsourcing into technology-driven, compliant, and outcome-focused operations.

Revolutionizing Complex Enterprise Processes

Applied AI's platform utilizes its Large Work Model to learn and re-engineer enterprise workflows, addressing inefficiencies and enhancing overall performance. This collaboration is set to bring significant improvements to various industries:

• Automation of Compliance-Heavy Workflows: Ensuring full transparency and auditability
• Enhanced Accuracy and Speed: Through secure AI orchestration and enterprise-grade controls
• Measurable Business Outcomes: Across healthcare, financial services, insurance, and government sectors

Strategic Vision and Partnership

Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource, emphasized the significance of this investment, stating, "As we move beyond the limits of traditional outsourcing, our investment in Applied AI is a decisive step towards reimagining enterprise operations from the ground up."

Arya Bolurfrushan, Founder & CEO of Applied AI, highlighted the partnership's focus on redefining knowledge work through supervised automation and outcome-based pricing.

Key Benefits of the Collaboration

Future Implications

This strategic investment positions Firstsource at the forefront of the evolving business process management landscape. By integrating Applied AI's capabilities, Firstsource aims to offer its clients:

1. Access to a rich network of domain experts
2. Scalable AI solutions
3. Confident transition to intelligent automation

The partnership between Firstsource and Applied AI sets a new standard for enterprise operations, promising a future where human judgment and AI work in harmony to deliver transparent, measurable, and scalable outcomes.

As the business world continues to evolve, this collaboration exemplifies the growing trend of AI integration in core business processes, potentially reshaping the future of work across various industries.

Firstsource Solutions , a global provider of business process management services, has reported strong financial results for the second quarter of fiscal year 2026, marking its sixth consecutive quarter of double-digit year-on-year revenue growth.

Financial Highlights

The company's revenue grew by 20.10% year-on-year to Rs. 23.10 billion ($265.00 million) in Q2 FY26. In constant currency terms, the growth was 13.80% year-on-year and 2.00% quarter-on-quarter. Notably, Firstsource's trailing 12-month revenue has now crossed the $1 billion mark.

Operational Performance

Firstsource reported an EBIT margin of 11.50% for the quarter, marking a 70 basis points improvement year-on-year and 20 basis points quarter-on-quarter. This represents the fourth consecutive quarter of margin expansion for the company.

The company's net profit reached Rs. 1.80 billion, showing a robust 30.00% year-on-year growth. Diluted earnings per share (EPS) for the quarter stood at Rs. 2.54.

Business Highlights

• Signed four large deals during the quarter, including a significant contract for collection services with a top UK retail bank.
• Added 10 new logos, including 4 strategic logos with potential for at least $5 million in annual revenue each.
• Deal pipeline crossed $1 billion for the first time in company history.
• Headcount increased by 1,500 to 35,997 associates, the highest addition in six quarters.

Vertical Performance

• Banking and Financial Services: Grew 4.00% QoQ and 11.00% YoY in constant currency terms.
• Healthcare: Reported 6.00% YoY and 3.00% QoQ growth.
• Communications, Media, and Technology: Delivered 15.00% YoY growth in constant currency, though down 1.00% sequentially.

Geographic Performance

• North America: Grew 3.00% QoQ and 16.00% YoY in constant currency terms.
• Europe: Continued to face challenges due to muted economic growth and regulatory changes in the UK market.
• Australia: Showing promise as a long-term growth driver with strategic investments ongoing.

Strategic Initiatives

Firstsource is advancing its UnBPO™ strategy, focusing on technology arbitrage to replace traditional labor arbitrage models. The company has made strategic investments in AppliedAI and Lyzr to enhance its AI and automation capabilities, particularly in areas like mortgage processing and customer service.

Outlook

Firstsource maintains its FY26 guidance:

• Revenue growth of 13-15% in constant currency terms
• EBIT margin in the range of 11.25% to 12.00%

The company expects an accelerated growth trajectory in the second half of FY26, driven by the ramp-up of previously won deals, including a significant Healthcare BPaaS deal expected to contribute from Q3.

Ritesh Idnani, MD & CEO of Firstsource Solutions, commented, "Q2 is the sixth straight quarter of double-digit year-on-year revenue growth, and the seventh consecutive quarter of sequential revenue growth for us, despite the continued macroeconomic and geopolitical uncertainties. Our continued progress gives me confidence that we are on the right trajectory to deliver sustainable, profitable, and industry-leading growth."

As Firstsource Solutions continues to expand its capabilities and global footprint, the company appears well-positioned to capitalize on the growing demand for technology-driven business process management services across various industries.