Q3 2026 Firstsource Solutions Ltd Earnings Call Transcript
Key Points
- Firstsource Solutions Ltd (BOM:532809) reported a seventh consecutive quarter of double-digit year-on-year revenue growth, with a 16.2% increase in INR terms.
- The company achieved a fifth straight quarter of margin expansion, with EBIT margins improving by 80 basis points year-on-year.
- Firstsource Solutions Ltd (BOM:532809) signed five large deals in Q3, including new logos, indicating strong client acquisition and expansion.
- The company has a robust deal pipeline, maintaining over $1 billion, which supports future growth prospects.
- The acquisition of TeleMedik and Pastdue Credit is expected to enhance capabilities and expand market presence, particularly in the healthcare and utilities sectors.
- The healthcare vertical showed only 6% year-on-year growth and was flat sequentially, indicating potential challenges in this segment.
- There is uncertainty regarding the impact of government spending on the healthcare segment, which could affect future demand.
- The company faces potential risks from regulatory changes, such as the proposed cap on credit card late payment fees, which could impact the BFSI segment.
- The account rationalization in the healthcare provider segment may weigh on short-term growth, despite potential medium-term margin benefits.
- Despite strong revenue growth, the company's net debt increased to INR11.7 billion as of December 2025, indicating financial leverage concerns.
Ladies and gentlemen, good day, and welcome to Firstsource Solutions Limited Q3 FY '26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
On this call, we have Mr. Ritesh Idnani, MD and CEO; and Mr. Dinesh Jain, CFO, to provide an overview of the company's performance followed by Q&A. Please note that some of the matters that we will discuss on this call, including the company's business outlook, are forward-looking and as such are subject to known and unknown risks. These uncertainties and risks are included, but not limited to what company has mentioned in its prospectus filed with SEBI and subsequent annual reports that are available on its website.
I now hand the conference over to Mr. Ritesh Idnani. Thank you, and over to you, sir.
Hello, everybody. Thank you for joining us today to discuss our financial results for the third quarter of FY '26. My name is Ritesh Idnani, and I'm
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