Firstsource Solutions Limited – Investor Presentation Summary

Key Operational Highlights

  • Total employees reached 39,937 as of 30th September 2026, with net addition of 3,062 in Q2FY27
  • Attrition rate (for employees in continuous employment >180 days) stood at 34.0% TTM
  • Added 17 new logos during the quarter, including 6 strategic logos
  • Expanded relationships with multiple existing clients across verticals including UK-based MVNO, top US healthcare payers, and UK communications/media company

Key drivers of operational performance: Strong client additions and relationship expansions, particularly in Banking & Financial Services and Healthcare verticals

Segment-wise Performance

  • Banking & Financial Services: 35.5% of revenue (up from 33.2% in Q1FY27)
  • Healthcare: 31.6% of revenue (down from 33.0% in Q1FY27)
  • Communication, Media & Technology: 20.6% of revenue (stable from 20.6% in Q1FY27)
  • Diverse Industries: 12.3% of revenue (down from 13.2% in Q1FY27)

Explanation of significant changes in segment performance: Banking & Financial Services vertical showed strongest growth while Healthcare vertical declined as a percentage of total revenue

Financial Highlights

Revenue: ₹28,256 million

EBITDA: ₹4,705 million

PAT: ₹2,328 million

EPS: ₹3.31 per share

Margins: EBITDA margin 16.7%, EBIT margin 12.5%, Net margin 8.2%

YoY/QoQ comparison: Revenue up 22.2% YoY and 3.7% QoQ; PAT up 29.7% YoY and 40.3% QoQ

Drivers of financial performance: Revenue growth across verticals, operational efficiencies, and margin expansion

Comparison to market estimates: Not Specified

Key Risks: Fluctuations in earnings, intense competition in BPS market, wage increases, ability to attract and retain professionals, client concentration, international operations management

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

  • North America: 65.6% of revenue
  • Europe, Middle East & Africa: 32.7% of revenue
  • Rest of World: 1.7% of revenue

Regional Breakdown: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Current assets ₹32,663 million; Current liabilities not fully specified

Working Capital/Leverage Metrics: Working capital changes showed net usage of ₹3,390 million in H1FY27

Financial Health Insights: Cash and cash equivalents increased to ₹3,518 million as of Sep 30, 2026 from ₹2,586 million as of Mar 31, 2026

Capex & Cash Flow Health

Capital Expenditure: ₹991 million net in H1FY27

Free Cash Flow: Not Specified

Operating Cash Flow: ₹4,969 million generated in H1FY27

Net Debt Movement: Not Specified

Investment Rationale: Focus on technology upgrades and capacity expansion

Strategic & R&D Initiatives

Investments in Innovation: Recognized as Leader in Generative AI and Agentic AI Services by ISG Provider Lens 2026

Expected impact on growth: Not Specified

Strategic Rationale: Deep domain intelligence; agent-first operations; compounding competitive advantage

Industry Trends & Business Environment

Macro/Industry Trends: Not Specified

Impact on Company: Not Specified

Management Commentary & Growth Outlook

Strategic Outlook: Company maintains specialized BPS partner positioning with deep domain intelligence

FY Guidance: FY27 revenue growth guidance of 12-14% constant currency

Market Share Targets: Not Specified

Risks and Opportunities: Risks include fluctuations in earnings, intense competition, wage increases, ability to manage international operations, client concentration

Employee Metrics

  • Total employees: 39,937 as of 30th September 2026
  • Net addition: 3,062 in Q2FY27
  • Attrition: 34.0% TTM (for employees with >180 days continuous employment)

Client Metrics

  • Top 5 clients: 27.0% of total revenues (decreasing from 27.4% in Q1FY27)
  • Top 10 clients: 38.9% of total revenues (decreasing from 39.2% in Q1FY27)
  • US$ 1m+ clients: 139 numbers
  • US$ 5m+ clients: 51 numbers
  • US$ 10m+ clients: 23 numbers
  • US$ 20m+ clients: 9 numbers
  • US$ 50m+ clients: 2 numbers

Delivery Location Mix

  • Offshore & Nearshore: 42.3% of revenue
  • Onshore: 57.7% of revenue

Currency Exposure

  • USD: 64.5% of revenue
  • GBP: 31.7% of revenue
  • Others: 3.8% of revenue