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 has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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