Firstsource Solutions Reports Strong Q3 FY26 Results with 18.16% Revenue Growth
Firstsource Solutions Limited reported strong Q3 FY26 consolidated results with revenue of ₹24,674.47 million, up 18.16% YoY, though net profit declined to ₹1,203.29 million due to exceptional items worth ₹1,001.45 million. The Board declared an interim dividend of ₹5.50 per share and completed the acquisition of Pastdue Credit Solutions Limited for GBP 22 million. All business segments showed growth, with Diverse Industries leading at 33.14% increase.
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Firstsource Solutions Limited announced its audited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, demonstrating robust operational performance and strategic growth initiatives.
Financial Performance Overview
The company delivered strong consolidated results for Q3 FY26, with revenue from operations reaching ₹24,674.47 million, marking an 18.16% increase from ₹20,878.50 million in the corresponding quarter of the previous year. For the nine-month period, revenue grew significantly to ₹70,030.76 million from ₹58,043.32 million in the previous year.
| Metric | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹24,674.47 million | ₹20,878.50 million | +18.16% |
| Net Profit After Tax | ₹1,203.29 million | ₹1,603.05 million | -24.93% |
| Total Income | ₹24,466.97 million | ₹21,002.81 million | +16.49% |
| Total Expenses | ₹21,948.75 million | ₹19,084.36 million | +15.00% |
Segment-wise Performance
The company's diversified business portfolio showed growth across all major segments during Q3 FY26:
| Business Segment | Q3 FY26 Revenue | Q3 FY25 Revenue | Growth (%) |
|---|---|---|---|
| Banking and Financial Services | ₹7,811.40 million | ₹6,757.75 million | +15.59% |
| Healthcare | ₹7,925.12 million | ₹7,095.99 million | +11.68% |
| Communication, Media and Technology | ₹5,237.19 million | ₹4,245.34 million | +23.36% |
| Diverse Industries | ₹3,700.76 million | ₹2,779.42 million | +33.14% |
Key Corporate Actions and Developments
The Board of Directors approved several significant decisions during their meeting held on February 3, 2026:
- Interim Dividend: Declaration of interim dividend of ₹5.50 per share (55%) on paid-up capital, with record date fixed as February 20, 2026
- Leadership Continuity: Approval for continuation of Dr. Rajiv Kumar (DIN: 02385076) as Non-Executive Independent Director beyond age 75 years effective July 6, 2026
- Postal Ballot: Authorization of postal ballot notice seeking member approval for Dr. Rajiv Kumar's continued directorship
Strategic Acquisition
Firstsource Solutions completed a significant acquisition during the quarter through its wholly-owned subsidiary Firstsource Solutions UK Limited. The company acquired 100% ownership in Pastdue Credit Solutions Limited (PDC), a UK-based provider of white-label early arrears and debt collections services, for an aggregate consideration of GBP 22 million, including contingent consideration of GBP 4.40 million.
| Acquisition Details | Amount/Information |
|---|---|
| Total Consideration | GBP 22 million |
| Contingent Consideration | GBP 4.40 million |
| Fair Value of Net Assets | ₹912.40 million |
| Goodwill (Provisional) | ₹1,802.07 million |
| Completion Date | December 11, 2025 |
Exceptional Items Impact
The company recognized exceptional expenses of ₹1,001.45 million in Q3 FY26, primarily consisting of:
- Labour Code Compliance: ₹913.53 million one-time expense for increased liability in gratuity and compensated absences following Government of India's notification of new Labour Codes on November 21, 2025
- Investment Impairment: ₹87.92 million provision for impairment of investment in associate
Standalone Financial Performance
The standalone financial results showed total income of ₹7,629.69 million for Q3 FY26 compared to ₹6,348.42 million in Q3 FY25. Net profit after tax and before other comprehensive income stood at ₹588.06 million versus ₹1,479.83 million in the previous year quarter.
Earnings Per Share
Consolidated earnings per share for Q3 FY26 were ₹1.74 (basic) and ₹1.71 (diluted), compared to ₹2.33 (basic) and ₹2.27 (diluted) in Q3 FY25. For the nine-month period, basic EPS was ₹6.79 compared to ₹6.30 in the previous year.
Historical Stock Returns for Firstsource Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.59% | -1.23% | -9.04% | -8.63% | -6.53% | +235.41% |
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