Firstsource Solutions delivered impressive second-quarter results with net profit surging 40.1% sequentially to ₹232.4 crore compared to ₹165.9 crore in the preceding quarter, according to reports from CNBC TV18. Revenue grew 2.9% sequentially to ₹2,831 crore from ₹2,752 crore, demonstrating steady business momentum. However, the company's EBIT margin narrowed to 12.6% in Q2FY27 from 13.2% in the June quarter, indicating some pressure on operational efficiency. The latest figures show net profit up 40.4% to ₹233 crore from ₹166 crore, with revenue growing 2.9% to ₹2,831 crore from ₹2,752 crore. As per Prabhudas Lilladher's research report dated October 29, 2026, the company achieved revenue growth of 2.0% quarter-on-quarter in constant currency terms with EBIT margin of 12.5%, showing resilience despite operational challenges.
For the six months ended September 30, 2026, Firstsource reported revenue of ₹5,550.5 crore, up 22.5% year-on-year, as reported by CNBC TV18. EBIT rose 33.4% to ₹688.8 crore, equivalent to 12.4% of revenue. Adjusted profit after tax stood at ₹455.1 crore, representing 8.2% of revenue, while reported PAT was ₹398.7 crore. Chairman Sanjiv Goenka highlighted the company's 12 consecutive quarters of sequential revenue growth and eight consecutive quarters of margin expansion. According to Prabhudas Lilladher's analysis, the company demonstrated strong execution capabilities with EBIT margin expanding 10 basis points quarter-on-quarter to 12.5% despite the first phase of wage hikes and costs of onboarding employees ahead of revenue.
Firstsource secured four large deals in Q2FY27, marking the seventh consecutive quarter in which it secured at least four such deals, according to CNBC TV18. The company added 17 clients during the quarter, including six strategic accounts. Notable wins included expanding customer experience services with a UK-based mobile virtual network operator across multiple markets and securing claims processing services with a North American top 10 healthcare payer. The company also added a leading UK and European bank for managed operations support services and won deals with a US student loan provider and US digital bank. As per Prabhudas Lilladher's report, the deal momentum remained strong with 4 large deal wins including 2 from new logos, demonstrating the company's ability to expand its client base and secure new business opportunities. According to Anand Rathi's analysis, $5mn+ clients rose to 51 (+6 q/q) and $10mn+ clients to 23 (+3 q/q), reflecting deeper wallet share with top-10 client concentration declining approximately 10 percentage points over eight quarters.
Firstsource's closing headcount stood at 39,937 at the end of Q2FY27, representing a net addition of 3,062 employees during the quarter, as reported by CNBC TV18. The voluntary attrition rate was 28.4%. The company continues to expand its technology-led services and client relationships across healthcare, banking, communications and media sectors, positioning itself beyond traditional outsourcing towards AI-driven solutions. According to Prabhudas Lilladher's analysis, the headcount addition of 3,062 was the highest since Q2FY25, largely in anticipation of deal ramp-ups and transition of a major banking client, with over 85% of incremental hiring in India and the Philippines.
Firstsource raised its FY27 revenue growth guidance to 10.5%-13% in constant currency terms, with the company expecting its EBIT margin to remain between 12.25% and 12.75% for the full financial year, according to CNBC TV18. The revised outlook reflects the company's expansion of technology-led services and strengthening client relationships across key sectors. Prabhudas Lilladher has raised its FY27E/FY28E revenue constant currency growth estimates to 11.5%/10.9% from 11.1%/10.5% respectively, while retaining FY29E estimates. Anand Rathi has revised its estimates upward, with FY27/28/29e Revenue and PAT estimates increased by +0.3/+0.3/+0.3% and +1.7/+4.2/+3.7% respectively, implying FY27-29e adj. EPS CAGR of 16.2%. The brokerage maintains a 'buy' rating with a target price of ₹384, valuing the stock at 18x September 2028 earnings, expecting 25.5% upside from current market price of ₹305. The analysts expect H2FY27 to outperform H1 supported by large-deal ramp-ups, strong hiring, improving conversion and robust pipeline, with management indicating that the impact of healthcare project cancellation and payer program wind-down is largely behind.
