Firstsource Solutions Q1 FY 2026-27 Results: Profit Falls 19% QoQ, Shares Slump Over 13%
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Firstsource Solutions shares slumped over 13% despite Q1 FY 2026-27 revenue rising 22.9% year-on-year, as net profit fell 19% sequentially to Rs 166 crore.
Firstsource Solutions Q1 FY 2026-27 Results: Business process management company Firstsource Solutions Ltd reported its June quarter (Q1 FY27) results on Thursday, August 6. While revenue grew in double digits year-on-year, net profit declined sequentially, with the stock falling sharply after the earnings announcement.
Net profit for the quarter stood at ₹166 crore, down 19% from ₹205 crore in the March quarter.
Revenue from operations rose 22.9% year-on-year to ₹2,724.9 crore from ₹2,217.7 crore in the corresponding quarter last year. On a sequential basis, revenue increased 5.5% from ₹2,583.5 crore.
In constant currency terms, revenue grew 12% year-on-year to $288 million from $259 million a year earlier.
At the operating level, EBIT stood at ₹337 crore during the quarter, up 7.2% sequentially, while the EBIT margin remained broadly stable at 12.3% compared with 12.2% in the previous quarter.
The company maintained its FY27 guidance, expecting constant currency revenue growth of 10-13% and EBIT margins in the range of 12.25-12.75%.
Business Performance
North America remained Firstsource's largest market during the quarter, contributing 66.4% of revenue, followed by Europe, the Middle East and Africa at 31.7%. The Rest of the World accounted for the remaining 1.9%.
Among business verticals, banking and financial services contributed the largest share of revenue at 33.2%, followed closely by healthcare at 33%. Communications, media and technology accounted for 20.6%, while diverse industries contributed 13.2%.
During the quarter, Firstsource secured a large transformation deal with a UK-based benefits and pensions administration provider to deliver end-to-end back-office transformation and resource optimisation. It also won a contract from a leading academic medical centre in the US for insurance follow-up, denials management and complex claims resolution, marking a new client addition.
The company ended the quarter with a workforce of 36,875 employees, adding 670 employees sequentially and 2,380 over the past year. Employee attrition, measured on a trailing 12-month basis for employees with more than 180 days of service, stood at 33.1%.
Firstsource Solutions Share Price
Shares of Firstsource Solutions fell sharply after the results announcement. The stock dropped as much as 17.4% to an intraday low of ₹280.30 on the NSE before recovering some of the losses. At market close, the stock settled at ₹292.95, down ₹46.50 or 13.70% from the previous close. Investors appeared to react to the sequential decline in profit despite the company's double-digit revenue growth and unchanged FY27 guidance.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, visit www.kotakneo.com/disclaimer.
Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
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