Firstsource Solutions Ltd (NSE:FSL)

Q1 2027 Firstsource Solutions Ltd Earnings Call Transcript

Aug 6, 2026 / 10:30 AM GMT

Release Date Price: ₹293.95 (-13.40%)

Transcript

Key Points

Positve

Firstsource Solutions Ltd (BOM:532809) reported its ninth consecutive quarter of double-digit year-on-year revenue growth, with revenue up 22.9% YoY and 5.5% QoQ to Rs.27.2 billion.
The company achieved its sixth consecutive quarter of four or more large deal wins, with the highest ACV intake in the last four quarters, signaling strong demand and a robust pipeline.
EBIT margin improved for the seventh straight quarter, reaching 12.4%, up 110 basis points YoY, and the company reaffirmed its FY27 guidance of 10-13% constant currency growth and 12.25-12.75% EBIT margin.
Strategic expansion is evident with 12 new logos added in Q1, including three strategic logos, and a 80% increase in $5 million-plus clients over the past two years, reflecting successful wallet deepening.
The company is making significant progress in AI-led transformation, with production-grade AI platforms running for 14 of the top 20 US mortgage lenders and 10 of the top 15 US health plans, positioning it as a leader in intelligent operations.
Geographic diversification is paying off, with Europe growing 18% YoY and Australia doubling revenue YoY, while South Africa emerged as the fastest-growing geography, reducing reliance on any single market.

Negative

Firstsource Solutions Ltd (BOM:532809) recorded a one-time exceptional charge of Rs.717 million (Rs.563 million net of taxes), including Rs.357 million related to a healthcare BPAS program termination due to a client leadership change.
The healthcare vertical saw a 2% sequential decline in constant currency revenue, impacted by program timing effects and the wind-down of a transformative BPAS engagement, which was expected to contribute 1-1.5% to FY27 growth.
The company faced a second exceptional charge of Rs.284 million for indemnifying a regulatory penalty to a customer due to a contractual performance matter, highlighting operational risks in outcome-based models.
CMT vertical growth was muted at 6% YoY, reflecting inherent volatility and timing of work packets in consumer tech engagements, with a need for transitions to complete for healthier growth.
Voluntary attrition remained high at 27.5% for the quarter, indicating ongoing challenges in talent retention despite efforts to improve workforce stability through AI-enabled interventions.
Net debt increased to Rs.17.1 billion from Rs.16.3 billion at the end of March 2026, and the company's normalized DSO remained in the 67-69 days range, suggesting continued pressure on working capital.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FISO.NS - Firstsource Solutions Ltd
Q1 2027 Firstsource Solutions Ltd Earnings Call
Aug 06, 2026 / 10:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the First Source Solutions Limited Q1 FY27 earnings conference call.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference call, please signal an operator by pressing then 0 on your touchtone phone.

Please note that this conference is being recorded.

On this call we have Mr. Ritesh Ibnani, MD and CEO, and Mr. Dinesh Jain, CFO, to provide an overview on the company's performance, followed by a Q&A session.

Please note that some of the matters discussed on this call,

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