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Investor Presentation

Firstsource Solutions Investor Presentation: Key Takeaways

Firstsource reported Q1FY27 revenue of INR 27.2B, up 22.9% YoY. Strategy focuses on 'Intelligence That Operates' via AI-led transformation (Kairos) and expanding footprint in UK and US healthcare/utilities.

Guidance and delivery
Management target Revenue 11.5% FY27
Highlights
Revenue growth10% to 13% constant currency growth for FY27.
MarginsSeventh straight quarter of margin improvement; Q1 at 12.4%.
Order bookFour large deals signed in Q1; highest ACV intake in four quarters.
Demand visibilityStrong pipeline; 11th straight quarter of sequential revenue growth.
Management confidenceHigh; reaffirmed guidance despite a major contract termination.

Growth

Revenue grew 22.9% YoY and 5.5% QoQ to INR 27.2B ($288M). EBIT margin improved 110bps YoY to 12.4%.

Outlook

Full-year FY27 guidance reaffirmed: 10-13% CC revenue growth and 12.25-12.75% EBIT margins. Pipeline remains robust with high ACV intake.

Risks

Healthcare BPaaS engagement wind-down due to client leadership change; INR 717M one-time exceptional charges for legal/termination matters.

Last quarter's promises, checked

Delivered

  • EBIT Margin 11.5%-12.0% for FY26 → delivered 11.7% (= BEAT)
  • Tax rate 19%-21% for FY26 → delivered 20.6% (= BEAT)
  • Margin expansion 50-75 bps/year → delivered 100 bps YoY (= BEAT)

Partly delivered

  • Healthcare Payer revenue growth → slowed by Medicare Advantage timing (= PARTIAL)

Missed

  • UK Collections deal start Q4FY26 → delayed to Q1FY27 (= MISS)
Source

Investor Presentation filed with BSE, NSE: FSL. Summary written with AI assistance from the document.

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Firstsource Solutions Ltd: key numbers

Share price
₹259.45
Market cap
₹18,095 Cr
Revenue (annual)
₹9,556 Cr
Net profit (annual)
₹674.4 Cr
P/E (TTM)
27.0×Sector 22.1×
Promoter holding
53.66%+0.00% QoQ
FII holding
8.38%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Value
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Firstsource Solutions Employee Stock Options

Firstsource Solutions Ltd allotted 67,968 equity shares under its ESOP 2003 and ESOP 2019 schemes following the exercise of stock options.