Large deal wins (Q4)
4
Flat QoQ
Fifth consecutive quarter with 4+ large deals; 17 large deals in FY26 vs 14 in FY25.
FIRSTSOURCESOLUTIONS
Other
28 Apr 2026
Firstsource Solutions Ltd — Q4 FY26
Firstsource delivered a strong Q4 FY26, with revenue of ₹25.8B (up 19.5% YoY) and PAT of ₹2.1B (up 27.7% YoY).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Firstsource delivered a strong Q4 FY26, with revenue of ₹25.8B (up 19.5% YoY) and PAT of ₹2.1B (up 27.7% YoY). EBIT margin expanded 100bps YoY to 12.2%, the sixth consecutive quarter of expansion. Growth was driven by broad-based momentum across BFS (9% YoY CC) and healthcare (16% YoY CC), partially offset by softness in CMT and a delayed UK collections deal ramp. The company signed four large deals in Q4 and 17 in FY26, with the deal pipeline at an all-time high above $1B. Management guided FY27 constant currency revenue growth of 10-13% and EBIT margin of 12.25-12.75%. Key risk: AI-driven productivity could compress revenue per client if outcome-based pricing scales slower than expected.
Key Numbers
Strategic logos added (FY26)
24
+100% YoY
Doubled strategic client additions vs FY25; 50% convert to >$5M revenue.
Deal pipeline
$1B+
Highest ever
Pipeline at record level, up ~60% in Europe over last four quarters.
Revenue per employee (2-year change)
+12%
+12% over 2 years
Revenue growth outpacing headcount growth; gap expected to widen with agentic operations.
Management Guidance
FY27 constant currency revenue growth 10-13%
Management guides CC revenue growth of 10-13% for FY27, placing Firstsource in top decile of industry growth globally.
Management guidance revenueFY27 EBIT margin band 12.25-12.75%
EBIT margin guidance for FY27 is 12.25-12.75%, implying 5-55bps expansion over Q4 FY26 exit margin of 12.2%.
Management guidance marginsMedium-term EBIT margin target of 14-15%
Management reiterated aspiration to reach 14-15% EBIT margin band over the next couple of years.
Management guidance marginsInorganic contribution ~2-2.5% in FY27
Acquisitions (Pastel, Telematic) expected to contribute about 2-2.5% to FY27 revenue growth.
Management guidance growthKey Risks
Regulatory delays in UK collections deal
A large UK collections deal was delayed by a quarter due to regulatory approvals, impacting Q4 revenue. Though now live, similar delays could recur.
medium · management_commentaryMedicare Advantage regulatory headwinds
Tighter regulatory environment for Medicare Advantage plans caused payers to pause program rollouts, creating a short-term timing impact on healthcare revenue.
medium · management_commentaryAI-driven revenue compression risk
Analyst questioned potential deflation from AI productivity; management acknowledged efficiency gains but argued TAM expansion offsets. Risk remains if outcome-based pricing scales slower.
medium · analyst_questionCMT vertical volatility
CMT revenue declined 4% QoQ due to timing of work packets and program transitions in consumer tech; management expects normalization but volatility persists.
low · data_observationNotable Quotes
Intelligence that operates is that bridge. It is deep domain expertise encoded into AI that doesn't just advise or automate. It operates end to end with accountability and gets smarter with every engagement.
We are guiding to constant currency growth for FI27 to be in the 10 to 13% range and we are guiding for EBIT margin band of 12.25 to 12.75% for FI27.
Our deal pipeline is at its highest ever level today as we speak in the history of the company.
Frequently Asked Questions
What was Firstsource Solutions's revenue in Q4 FY26?
Firstsource Solutions reported revenue of ₹2,583 Cr in Q4 FY26, representing a +19.5% change compared to the same quarter last year.
What guidance did Firstsource Solutions management give for FY27?
FY27 constant currency revenue growth 10-13%: Management guides CC revenue growth of 10-13% for FY27, placing Firstsource in top decile of industry growth globally. FY27 EBIT margin band 12.25-12.75%: EBIT margin guidance for FY27 is 12.25-12.75%, implying 5-55bps expansion over Q4 FY26 exit margin of 12.2%. Medium-term EBIT margin target of 14-15%: Management reiterated aspiration to reach 14-15% EBIT margin band over the next couple of years. Inorganic contribution ~2-2.5% in FY27: Acquisitions (Pastel, Telematic) expected to contribute about 2-2.5% to FY27 revenue growth.
What are the key risks for Firstsource Solutions in FY27?
Key risks include Regulatory delays in UK collections deal — A large UK collections deal was delayed by a quarter due to regulatory approvals, impacting Q4 revenue. Though now live, similar delays could recur.; Medicare Advantage regulatory headwinds — Tighter regulatory environment for Medicare Advantage plans caused payers to pause program rollouts, creating a short-term timing impact on healthcare revenue.; AI-driven revenue compression risk — Analyst questioned potential deflation from AI productivity; management acknowledged efficiency gains but argued TAM expansion offsets. Risk remains if outcome-based pricing scales slower.; CMT vertical volatility — CMT revenue declined 4% QoQ due to timing of work packets and program transitions in consumer tech; management expects normalization but volatility persists..
Did Firstsource Solutions meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Firstsource Solutions Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.