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.

Firstsource Solutions Limited , a leading global provider of business process management services, has announced the approval of 677,000 stock options for its employees. The decision, made by the company's Nomination and Remuneration Committee on November 4, 2025, aims to align employee interests with those of shareholders and enhance long-term retention.

Key Details of the Stock Option Grant

• Number of Options: 677,000
• Eligibility: Employees of Firstsource Solutions Limited and its subsidiaries
• Plan: Firstsource Solutions Limited Employee Stock Option Plan 2019
• Conversion: Each option is exercisable into one equity share
• Approval Date: November 4, 2025

This move comes as part of Firstsource's strategy to motivate and retain talent in a competitive business environment. By offering stock options, the company provides employees with a stake in its future success, potentially fostering a stronger sense of ownership and commitment.

Alignment with Company Performance

The stock option grant coincides with Firstsource's recent financial performance. In its Q2 FY2026 results, the company reported:

These financial results may provide additional confidence to employees receiving the stock options, as they reflect the company's growth trajectory and market position.

Employee Engagement and Retention Strategy

Firstsource has been actively working on improving its employee metrics. As of Q2 FY2026:

• Total employee strength stood at 35,997, with a net addition of 1,502 over the previous quarter
• Attrition rate declined to 28.0%, showing a 12 percentage point improvement over the last eight quarters

The stock option grant may further support these positive trends in employee retention and engagement.

Market Impact and Outlook

While the immediate market impact of this stock option grant may be limited, it signals Firstsource's commitment to aligning employee incentives with shareholder interests. As the company continues to execute its growth strategy, including its 'UnBPO™' approach and focus on AI-driven solutions, motivated employees could play a crucial role in driving innovation and client satisfaction.

Firstsource maintains its FY2026 guidance of 13-15% constant currency revenue growth and an EBIT margin between 11.25% and 12%, indicating confidence in its business model and market positioning.

Investors and market observers will likely monitor how this employee stock option program contributes to Firstsource's ability to attract and retain talent, particularly in key areas such as AI and digital transformation, which are central to the company's future growth plans.