Firstsource Q4 Results: Profit and revenue rise from last year; FY26 guidance missed

Shares of Firstsource Solutions

Ltd. were trading around 5% higher at ₹229.32 on Wednesday, May 6, after the company reported its March quarter earnings, even as it fell short of its full-year FY26 revenue guidance.

For FY26, the company posted constant currency revenue growth of 13.6%, below its revised guidance range of 14.5-15.5%, which had included a 1.5% contribution from acquisitions.



However, EBIT margin for the year came in at 11.7%, in line with its guidance band of 11.5-12%.

Looking ahead to FY27, Firstsource has guided for 10-13% constant currency revenue growth, compared to 13.6% in FY26, and expects EBIT margin to improve to 12.25-12.75%.

For the quarter, the company's net profit rose 27.8% YoY to ₹205.2 crore, while revenue increased 20.5% to ₹2,613 crore.

EBITDA surged 35.7% to ₹460 crore, with margins expanding to 17.6% from 15.6% a year ago.

Deal momentum remained robust, with four large deal wins during the quarter, marking the fifth consecutive quarter with four or more large deals. The exit deal pipeline stood at over $1 billion.

Over the medium term, the company is targeting double-digit constant currency revenue growth along with a 50-75 basis points expansion in EBIT margin.

Despite the post-results rally, the stock remains down over 30% so far this year.