Firstsource SolutionsNSE:FSL -0.23%81 Pretax Margin % is 9.97% as of Mar. 2026, which is 1% above its 10-year median of 9.84. GuruFocus rates NSE:FSL with a GF Score™ of 81/100 and a GF Value™ of ₹370.94 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,821 Software companies, Firstsource Solutions ranks better than 66.04% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Firstsource Solutions Pretax Margin % Related Terms
Firstsource Solutions Pretax Margin % Historical Data
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The historical data trend for Firstsource Solutions's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:FSL vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, Firstsource Solutions's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Firstsource Solutions Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Firstsource Solutions (NSE:FSL) has a Pretax Margin % of 9.97% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Firstsource Solutions and its competitors. This is near median its historical median of 9.84. Over the past decade, Firstsource Solutions' Pretax Margin % has ranged from 8.58 to 11.51. According to the industry distribution chart, Firstsource Solutions ranks #958 out of 2821 companies in the Software industry, placing it in the top 34%.
Is Firstsource Solutions' Pretax Margin % too high?
Firstsource Solutions' current Pretax Margin % of 9.97% is near median its 10-year median of 9.84. Over the past 10 years, this metric has ranged from a low of 8.58 to a high of 11.51. The Software industry median Pretax Margin % is 3.50. Firstsource Solutions' value of 9.97% is 184.9% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #958 out of 2821 companies in the Software industry, which is above the industry midpoint. Overall, Firstsource Solutions has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Firstsource Solutions' Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #958 out of 2821 companies for Pretax Margin %. This puts Firstsource Solutions in the upper half of its industry. The industry median Pretax Margin % is 3.50. Firstsource Solutions' value of 9.97% is 184.9% above this benchmark. Historically, Firstsource Solutions' own Pretax Margin % has ranged from 8.58 to 11.51 over the past decade. While the company's 10-year median is 9.84 vs. the industry median of 3.50, Firstsource Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.50, based on 2,821 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current Pretax Margin % of 9.97% is 184.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median Pretax Margin % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current Pretax Margin % is 9.97%, which is near median its own 10-year median of 9.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Firstsource Solutions stock overvalued right now?
Based on GuruFocus' analysis, Firstsource Solutions (NSE:FSL) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹370.94, compared to a current price of ₹243.45 — trading 34.4% below its estimated fair value. The current Pretax Margin % is 9.97%, which is near median its 10-year median of 9.84 and 184.9% above the Software industry median of 3.50. Firstsource Solutions' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current Pretax Margin % is 9.97% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Firstsource Solutions (NSE:FSL) Overvalued in 2026?
Based on GuruFocus' analysis, Firstsource Solutions stock appears to be undervalued.
The current stock price of ₹243.45 is trading 34.4% below its estimated GF Value™ of ₹370.94.
GuruFocus considers Firstsource Solutions to be Significantly Undervalued.
Key valuation signals for NSE:FSL:
Pretax Margin %: 9.97% (near median its 10-year median of 9.84)
GF Value™: ₹370.94 vs. price of ₹243.45 (34.4% below fair value)
Industry Position: 184.9% above the Software median (#958 of 2821)
No single metric tells the full story. See the NSE:FSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Firstsource Solutions Ltd is engaged in the business of providing customer management services like contact centers, transaction processing, and debt collection services. The company's business segment includes Banking and Financial Services, Healthcare, Communication, Media and Technology, and Diverse Industries. It generates maximum revenue from the Banking and Financial Services segment. Geographically, it derives a majority of its revenue from the United States of America.
81GF Score
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