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.

Firstsource Solutions Limited , a leading global provider of Business Process Services (BPS), has reported robust financial performance for the first quarter of fiscal year 2026. The company's revenue reached ₹22,177 million (US$259 million), marking a significant 23.8% year-over-year growth and 19.2% constant currency growth.

Financial Highlights

• Revenue: ₹22,177 million (US$259 million), up 23.8% year-over-year
• EBIT: Grew 26.8% to ₹2,498 million with margin expansion of 30 basis points to 11.3%
• Profit After Tax: Increased 25.2% to ₹1,693 million
• Earnings Per Share: ₹2.40

Strategic Developments

• New Client Acquisitions: Firstsource added 17 new client logos during Q1, the highest quarterly addition in three years.
• Large Deal Momentum: The company secured four large deal wins in the quarter.
• AI Integration: Continued investment in AI capabilities through the Firstsource relAI™ suite.
• New Platforms: Launched new platforms including Gigsourcing and Agentic AI Studio.

Segment Performance

Firstsource Solutions operates across four main business segments:

Future Outlook

• Revenue Growth Guidance: Maintained at 13-15% in constant currency terms for the full year
• EBIT Margin Guidance: 11.25% to 12.0%

Workforce and Attrition

• Employee Strength: 34,495 at the end of Q1
• Attrition Rate: Improved to 28.9%

Firstsource Solutions continues to demonstrate strong financial performance and strategic growth, positioning itself as a key player in the global Business Process Services industry. The company's focus on AI capabilities and new platform launches, coupled with its ability to secure new clients and large deals, underscores its commitment to innovation and market leadership.