Firstsource Solutions Limited (NSE: FSL, BSE: 532809), a leading global provider of Business Process Services (BPS), has announced robust financial results for the first quarter, ending June 30. The company, part of the RP-Sanjiv Goenka Group, reported significant growth in revenue and profitability, along with several strategic wins and recognitions.

Financial Highlights

• Revenue reached ₹22,177.00 million (US$259.00 million), marking a substantial year-over-year growth of 23.8%.
• EBIT (Earnings Before Interest and Taxes) stood at ₹2,498.00 million, representing 11.3% of revenues and a 26.8% increase from the previous year.
• Profit After Tax (PAT) amounted to ₹1,693.00 million, constituting 7.6% of revenue.
• Diluted Earnings Per Share (EPS) was reported at ₹2.40.
• Free cash flow saw a significant quarter-on-quarter increase of 135%, with the FCF to PAT ratio at 196%.

Business Highlights

Firstsource demonstrated strong business momentum in Q1:

• Secured four large-deal wins during the quarter.
• Added 17 new logos, the highest in a single quarter over the past three years, with nine being strategic logos.
• Notable new deals included transforming claims and contact center operations for a leading US dental health plan and providing multi-state member contact center services for a major provider-sponsored health plan in the US.
• Expanded relationships with existing clients, including one of the largest utilities companies in the UK for Collections and CX services.

Segment Performance

The company reported progress across various verticals:

• Banking and Financial Services added two new clients.
• Healthcare sector saw the addition of eight new clients and all large deal wins for the quarter.
• Communications, Media & Technology added seven new clients, driven by demand for CX and AI-led solutions from digital-native brands.

Operational Metrics

• Employee strength at the end of Q1 stood at 34,495.
• Offshore/nearshore hires accounted for 80% of gross additions.
• The attrition rate further declined to 28.9%, showing a 13 percentage point improvement over the last eight quarters.

Recognition and Awards

Firstsource received several accolades during the quarter, including:

• Recognition as one of India's Best Companies To Work For by Great Place to Work®.
• Named among the Top Inspiring Workplaces in North America and UK & Ireland.
• Ranked third among Indian employers in the UK in the India Meets Britain Tracker by Grant Thornton.
• Received an A rating on CDP's Supplier Engagement Assessment (SEA).

Future Outlook

Firstsource has revised its constant currency revenue growth guidance to 13-15%, up from the previous 12-15%. The company maintains its EBIT margin projection in the 11.25% to 12% range.

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."

With its strong performance in Q1, Firstsource Solutions Limited continues to demonstrate its resilience and growth potential in the competitive Business Process Services sector.

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.