Firstsource Solutions Q2 FY27 Revenue Up 22.2% to ₹28.3 Bn, Raises FY27 Guidance
Firstsource Solutions reported Q2 FY27 revenue of ₹28.3 billion, up 22.2% YoY. EBIT margin was 12.5%. The company signed four large deals and added 17 new logos. FY27 revenue growth guidance raised to 10.5%-13% in constant currency, with EBIT margins reaffirmed at 12.25%-12.75%. 51 clients now generate over $5 million in revenue.
The announcement includes significant financial performance metrics, raised guidance, and details on deal wins and client growth, which are material to investors and the company's future prospects.
The company reported strong year-on-year revenue growth, sequential revenue growth, margin expansion, and raised its full-year revenue guidance, indicating a positive financial performance and outlook.
Firstsource Solutions Limited reported a strong Q2 FY27 with revenue growing 22.2% year-on-year to ₹28.3 billion (US$296 million). This marks the 10th consecutive quarter of double-digit year-on-year revenue growth and the 12th straight quarter of sequential revenue growth. The company's EBIT margin for the quarter was 12.5%, up 100 basis points year-on-year, marking the eighth consecutive quarter of sequential margin expansion. Net profit stood at ₹2.3 billion, with diluted EPS at ₹3.31.
For the first half of FY27, revenue grew 12.3% in constant currency terms, EBIT grew 33.4%, and PAT grew 14.3% year-on-year in rupee terms. The company signed four large deals in Q2, two from new logos, and added 17 new logos, including six strategic ones. Notable wins include expanding relationships with a UK-based MVNO, a North American healthcare payer, a non-profit managed care organization in the US, and securing new logo deals with a UK and European bank, a US-based student loan provider, and a digital bank in the US.
The BFS vertical grew 19% year-on-year, healthcare revenues grew 5% year-on-year (declined 2% sequentially), and the CMT vertical grew 6% year-on-year. The diverse portfolio (utilities and retail) grew 25% year-on-year. Geographically, North America grew 6% year-on-year, Europe grew 27% year-on-year, and Australia saw revenue growth of 50% year-on-year.
The company raised its FY27 constant currency revenue growth guidance to 10.5% to 13% (from 10% to 13%) while reaffirming EBIT margin guidance of 12.25% to 12.75%. Firstsource ended Q2 with 51 clients generating over $5 million in revenue run rate, an increase of six from the previous quarter, and added 3 clients to its $10 million plus cohort, taking the total to 23.
Reflecting on the performance, MD & CEO Ritesh Idnani highlighted the focus on sustainable transformation built on execution and repeatability, driven by systems and the commitment of their employees. CFO Dinesh Jain noted that this quarter marked Firstsource's 100th quarter, reflecting significant growth and investor trust.
What to do with a filing like this
Firstsource Solutions Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by Firstsource Solutions Limited. Read the original for the full detail.