Firstsource Solutions Limited announced its audited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1 FY2026-27) following a board meeting held on August 6, 2026. The meeting commenced at 11:00 a.m. and concluded at 12:30 p.m.

Consolidated Financial Results (₹ in millions)

Income Statement:

  • Revenue from operations: ₹27,517.51 (Q1 FY26: ₹22,209.34)
  • Other operating income, net: (₹268.75)
  • Other income, net: ₹61.10
  • Total income: ₹27,309.86

Expenses:

  • Employee benefits expense: ₹15,315.67
  • Depreciation and amortization: ₹1,146.36
  • Finance costs: ₹517.54
  • Other expenses: ₹7,420.02
  • Total expenses: ₹24,399.59

Profitability:

  • Profit before exceptional items and tax: ₹2,910.27
  • Exceptional items, net expense: ₹716.86
  • Profit before tax: ₹2,193.41
  • Tax expense: ₹534.24 (Current tax: ₹509.41, Deferred tax: ₹24.83)
  • Net profit after tax: ₹1,659.17
  • Other comprehensive income: ₹448.30
  • Total comprehensive income: ₹2,107.47

Per Share Data:

  • Basic EPS: ₹2.40
  • Diluted EPS: ₹2.36
  • Paid-up equity share capital: ₹6,969.91 million (Face value ₹10 per share)

Standalone Financial Results (₹ in millions)

Income Statement:

  • Revenue from operations: ₹9,134.42
  • Other operating income, net: (₹343.53)
  • Other income, net: ₹149.58
  • Total income: ₹8,940.47

Expenses:

  • Employee benefits expense: ₹3,976.67
  • Depreciation and amortization: ₹545.38
  • Finance costs: ₹167.29
  • Other expenses: ₹1,585.62
  • Total expenses: ₹6,274.96

Profitability:

  • Profit before exceptional items and tax: ₹2,665.51
  • Exceptional items: None
  • Profit before tax: ₹2,665.51
  • Tax expense: ₹597.60 (Current tax: ₹477.72, Deferred tax: ₹119.88)
  • Net profit after tax: ₹2,067.91
  • Other comprehensive income: ₹450.02
  • Total comprehensive income: ₹2,517.93

Per Share Data:

  • Basic EPS: ₹2.99
  • Diluted EPS: ₹2.94

Exceptional Items

For the quarter ended June 30, 2026, the company recorded exceptional charges of ₹716.86 million (₹563.14 million net of tax) comprising:

  • ₹356.73 million estimated as non-recoverable following termination of contract by a client
  • ₹283.74 million for indemnification of regulatory penalty to a customer
  • ₹76.39 million fair value adjustment on contingent consideration payable

The company is in discussions with the customer for recovery of the first item and has filed for recovery through insurance for the second item.

Segment Reporting (Consolidated)

Revenue by Segment:

  • Banking and Financial Services: ₹9,137.76 million
  • Healthcare: ₹9,080.49 million
  • Communication, Media and Technology: ₹5,662.03 million
  • Diverse Industries: ₹3,637.23 million
  • Total: ₹27,517.51 million

Segment Results before tax and finance costs:

  • Banking and Financial Services: ₹2,030.14 million
  • Healthcare: ₹1,015.88 million
  • Communication, Media and Technology: ₹1,426.04 million
  • Diverse Industries: ₹252.37 million
  • Total: ₹4,724.43 million

Business Highlights

  • Revenue growth of 22.9% YoY to ₹27,249 million (US$288 million)
  • EBIT of ₹3,367 million (12.4% of revenues), up 34.8% YoY
  • Adjusted PAT of ₹2,222 million (8.2% of revenue)
  • Signed four large deals in Q1 FY27, sixth consecutive quarter with four or more large deal wins
  • Added twelve new logos, including three strategic accounts
  • Closing headcount: 36,875
  • Voluntary attrition rate: 27.5% (for employees with >180 days service)

FY27 Outlook

  • Constant currency revenue growth guidance: 10% to 13%
  • EBIT margin guidance: 12.25% to 12.75%