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, continues its employee engagement initiatives with multiple share allotments under its employee stock option schemes. The company has now completed two separate allotments, demonstrating sustained employee participation in stock option programs.

Latest Share Allotment Update

The company has informed stock exchanges about its most recent share allotment completed on December 17, 2025:

This latest allotment follows the company's earlier allotment of 77,660 shares on December 10, 2025, bringing the total recent share allotments to 89,699 shares within a week.

Previous Share Allotment Activity

The December 17 allotment follows the company's recent allotment of 77,660 equity shares completed on December 10, 2025:

Both allotments were made pursuant to the exercise of stock options granted under the company's ESOP schemes, demonstrating active and sustained participation by employees.

Stock Option Grant Framework

These share allotments follow the company's approval of 677,000 stock options for its employees, reflecting the company's commitment to employee ownership:

Strong Financial Performance Supporting ESOP Programs

The continued employee stock option activities align with Firstsource's robust financial performance:

The company has been actively improving its workforce metrics, with total employee strength reaching 35,997 and a net addition of 1,502 employees. The attrition rate declined to 28.00%, showing a 12 percentage point improvement over eight quarters.

Regulatory Compliance and Strategic Impact

Both share allotments were conducted in compliance with SEBI regulations under Regulation 30, with proper notifications sent to NSE and BSE. The frequent exercise of stock options demonstrates employee confidence in the company's growth prospects and the effectiveness of Firstsource's talent retention strategy in the competitive business process management sector.