Firstsource Solutions (NSE:FSL) 3-Year RORE % : 17.91% (As of Mar. 2026)


NSE:FSL Firstsource Solutions Ltd NSE:FSL
81 GF Score
Price ₹259.71
GF Value ₹373.71
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Firstsource Solutions 3-Year RORE %?

Firstsource Solutions NSE:FSL +6.90% 81 3-Year RORE % is 17.91 as of Mar. 2026. GuruFocus rates NSE:FSL with a GF Score™ of 81/100 and a GF Value™ of ₹373.71 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,538 Software companies, Firstsource Solutions ranks better than 65.96% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Firstsource Solutions's 3-Year RORE % for the quarter that ended in Mar. 2026 was 17.91%.

The industry rank for Firstsource Solutions's 3-Year RORE % or its related term are showing as below:

NSE:FSL's 3-Year RORE % is ranked better than
65.96% of 2538 companies
in the Software industry
Industry Median: 3.08 vs NSE:FSL: 17.91

Firstsource Solutions  (NSE:FSL) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Firstsource Solutions 3-Year RORE % Related Terms


Firstsource Solutions 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for Firstsource Solutions's 3-Year RORE % 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.

Firstsource Solutions 3-Year RORE % Chart

Firstsource Solutions Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.28 21.44 -2.70 9.26 17.91

Firstsource Solutions Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.26 7.61 11.66 11.01 17.91

NSE:FSL vs IBM, ACN, FISV: 3-Year RORE % Comparison

For the Information Technology Services subindustry, Firstsource Solutions's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Software Industry

For the Software industry and Technology sector, Firstsource Solutions's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Firstsource Solutions's 3-Year RORE % falls into.


NSE:FSL
81GF Score
Firstsource Solutions Ltd NSE:FSL
3-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Firstsource Solutions 3-Year RORE % Calculation

Firstsource Solutions's 3-Year RORE % for the quarter that ended in Mar. 2026 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 9.56-7.35 )/( 25.34-13 )
=2.21/12.34
=17.91 %

* 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.

In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of 17.91 mean?
Firstsource Solutions (NSE:FSL) has a 3-Year RORE % of 17.91 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Firstsource Solutions and its competitors. According to the industry distribution chart, Firstsource Solutions ranks #864 out of 2538 companies in the Software industry, placing it in the top 34%.
Is Firstsource Solutions' 3-Year RORE % too high?
Firstsource Solutions' current 3-Year RORE % is 17.91. The Software industry median 3-Year RORE % is 3.08. Firstsource Solutions' value of 17.91 is 481.5% above this industry median. Based on the distribution chart, Firstsource Solutions ranks #864 out of 2538 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' 3-Year RORE % compare to IBM and ACN?
According to the Software industry distribution chart, Firstsource Solutions ranks #864 out of 2538 companies for 3-Year RORE %. This puts Firstsource Solutions in the upper half of its industry. The industry median 3-Year RORE % is 3.08. Firstsource Solutions' value of 17.91 is 481.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Software company?
The median 3-Year RORE % among Software companies is 3.08, based on 2,538 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Firstsource Solutions's current 3-Year RORE % of 17.91 is 481.5% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Firstsource Solutions and its competitors. For the Software industry, the median 3-Year RORE % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstsource Solutions's current 3-Year RORE % is 17.91. 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 ₹373.71, compared to a current price of ₹259.71 — trading 30.5% below its estimated fair value. The current 3-Year RORE % is 17.91 and 481.5% above the Software industry median of 3.08. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current 3-Year RORE % is 17.91 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 ₹259.71 is trading 30.5% below its estimated GF Value™ of ₹373.71. GuruFocus considers Firstsource Solutions to be Significantly Undervalued.

Key valuation signals for NSE:FSL:

  • 3-Year RORE %: 17.91
  • GF Value™: ₹373.71 vs. price of ₹259.71 (30.5% below fair value)
  • GF Score™: 81/100 with 1 warning sign
  • Industry Position: 481.5% above the Software median (#864 of 2538)

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 Business Description

Other Exchanges 532809:India
Address Mindspace, Link Road, 5th Floor, Paradigm ‘B’ Wing, Malad (West), Mumbai, MH, IND, 400 064
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

Get the complete analysis for NSE:FSL

3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹259.71
Price
₹373.71
GF Value