Firstsource Solutions Limited , a leading global provider of Business Process Services (BPS), has reported strong financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company has also raised its full-year revenue growth forecast, citing robust deal wins and successful AI implementation.

Financial Highlights

Revised Growth Forecast and AI-Driven Efficiency

Firstsource has increased its full-year revenue growth forecast to 13-15% in constant currency terms, up from the previous projection of 12-15%. This upward revision excludes potential contributions from the recently announced acquisition of Pastdue Credit Solutions Limited, a UK-based collections agency.

Chairman Sanjiv Goenka highlighted the company's successful AI implementation, stating that it has improved efficiency without necessitating additional headcount. This AI-driven approach has contributed to margin improvement and a significant 13% reduction in attrition rates over the past eight quarters.

Strong Deal Momentum and Client Acquisition

The company reported impressive deal wins and client acquisitions in Q1 FY26:

• Secured four large deals, maintaining the momentum from previous quarters
• Added 17 new logos, the highest in a single quarter over the past three years
• Nine of the new additions are considered strategic logos
• Achieved $95.00 million in Annual Contract Value (ACV) for Q1, building on the $434.00 million secured in the previous year
• Current deal pipeline stands at $1.10 billion, 40% higher than recent quarters

Vertical-Wise Performance

Firstsource made significant progress across its key verticals:

• Banking and Financial Services: Added two new clients
• Healthcare: Secured eight new clients and all large deal wins in Q1
• Communications, Media & Technology: Added seven new clients, driven by demand for CX and AI-led solutions

Strategic Acquisitions and 'Un-BPO' Approach

The company completed three acquisitions in fiscal year 2024-25, including the purchase of Past Due Credit Solutions for $22.00 million in July. This acquisition provides Firstsource entry into the UK public utilities market.

Firstsource continues to implement its 'un-BPO' strategy, which combines AI with conventional business process outsourcing. The company has introduced the Firstsource relAI™ suite and Agentic AI Studio, embedding AI at the core of its service delivery.

Employee Metrics and Recognition

• Total headcount stood at 34,495 as of June 30, 2025
• Attrition rate further decreased to 28.90%, showing a 13 percentage point improvement over the last eight quarters
• Recognized as one of India's Best Companies To Work For 2025 by Great Place to Work®
• Named among the Top Inspiring Workplaces 2025 in North America and UK & Ireland

Looking Ahead

Firstsource maintains its target of margin expansion toward mid-teen levels while continuing to implement its AI-driven 'un-BPO' strategy. The company's focus on non-linear, multi-tower engagements and its differentiated UnBPO™ approach are expected to fuel sustainable growth, even in a volatile macro environment.

With a strong start to FY26 and a consistent pipeline of high-quality deal wins, Firstsource appears well-positioned to capitalize on the growing demand for AI-powered business process solutions across its key verticals.

Firstsource Solutions Limited (NSE: FSL, BSE: 532809), a leading global provider of Business Process Services (BPS), has reported robust financial results for the first quarter, ending June 30. The company has also revised its revenue growth guidance upward for the fiscal year.

Financial Highlights

• Revenue reached ₹22,209.34 crore, up 24.5% year-over-year from ₹17,838.70 crore in the same quarter of the previous year.
• EBIT (Earnings Before Interest and Taxes) stood at ₹2,498.00 crore, representing 11.3% of revenues and a 26.8% increase year-over-year.
• Net profit after tax rose to ₹1,693.25 crore, or 7.6% of revenue.
• Diluted Earnings Per Share (EPS) improved to ₹2.40, compared to ₹1.92 in the same quarter last year.

Segment Performance

Firstsource reported growth across all its business segments:

Strategic Developments

The company announced several key developments during the quarter:

• Secured four large-deal wins, demonstrating continued momentum in high-value contracts.
• Added 17 new logos, the highest in a single quarter over the past three years, with nine being strategic logos.
• Expanded relationships with existing clients, including a major UK utilities company and a leading US fintech firm in the Buy Now, Pay Later (BNPL) space.
• Employee strength reached 34,495, with 80% of new hires in offshore/nearshore locations.
• Attrition rate decreased to 28.9%, showing a 13 percentage point improvement over the last eight quarters.

Acquisition Plans

On July 18, Firstsource Solutions UK Limited, a wholly-owned subsidiary, signed an agreement to acquire Pastdue Credit Solutions Limited (PDC), a UK-based collections agency. The acquisition, valued at GBP 22 million including earn-out payments, is subject to regulatory approvals.

Revised Outlook

Based on the strong Q1 performance, Firstsource has revised its constant currency revenue growth guidance to 13-15%, up from the previous 12-15% range. The company maintains its EBIT margin guidance at 11.25% to 12% for the fiscal year.

Management Commentary

Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource Solutions, commented on the results: "We've begun the fiscal year on a positive note, building on the momentum of a breakthrough previous year. The consistent cadence of large, high-quality deal wins quarter after quarter underscores our ability to deliver impact at scale – powered by AI, deep domain expertise, and agile operations."

He added, "Our differentiated UnBPO™ approach, coupled with a focus on non-linear, multi-tower engagements, continues to fuel sustainable growth, even in a volatile macro environment. With AI now embedded at the heart of our delivery through the Firstsource relAI™ suite and Agentic AI Studio, I am confident that our people, platforms, and partnerships will continue to power meaningful outcomes for our clients and stakeholders."

Firstsource Solutions continues to strengthen its position in the global BPS market, leveraging its domain expertise, AI-driven solutions, and strategic partnerships to drive growth and deliver value to its clients and shareholders.