Firstsource Solutions Ltd (FSL) Q2 FY27 Results Analysis: Revenue Jumps 22%, Guidance Raised
Firstsource Solutions Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,830.64 Cr (+22.29% YoY) and PAT growth of +29.48% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 29, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 2,830.64 Cr (+22.29% YoY) |
| PAT (Q2) | Rs. 232.44 Cr (+29.48% YoY) |
| EBITDA margin | 16.62% (+37 bps YoY) |
| EPS (Q2) | Rs. 3.37 (+29.62% YoY) |
| Market cap | Rs. 21,670.39 Cr |
| CMP | Rs. 306.45 |
Quarter Snapshot
FSL delivered 22.29% YoY revenue growth with EBIT margin at 12.46%, inside the FY27 guided band, and raised the lower end of its CC revenue growth guidance to 10.5%. Eight consecutive quarters of margin expansion, 17 new logos, and net debt reduction support the thesis, while the above-band tax rate, Diverse Industries margin collapse to 4.22%, and receivables growing faster than revenue are the watch items.
Key Investment Insights
Key Positives
- Revenue grew 22.29% YoY to Rs.2,830.64 cr, the tenth straight quarter of double-digit YoY growth
- EBIT margin expanded 94 bps YoY to 12.46%, the eighth consecutive quarter of margin expansion
- Normalized owners PAT grew 30.81% YoY to Rs.232.82 cr with no exceptional items in Q2
- Lower end of FY27 CC revenue growth guidance raised to 10.5%-13%; EBIT margin band of 12.25%-12.75% reaffirmed
- 17 new logos (among the highest ever) and 4 large deals, the seventh consecutive quarter with 4+
- Headcount added 3,062 QoQ to 39,937 while revenue grew 2.87% QoQ, indicating revenue growth outpacing headcount
- Net debt reduced by Rs.96.31 cr over six months to Rs.1,532.42 cr despite contingent-consideration payments of Rs.51.41 cr
- BFS segment revenue grew 30.84% YoY; CMT segment results grew 58.23% YoY at a 24.40% margin
Risk Factors
- Q2 effective tax rate of 22.35% (H1 23.20%) printed above the FY27 guided band of 20%-22%
- Diverse Industries segment result fell 47.94% YoY with margin collapsing to 4.22% from 10.53% a year ago
- Billed receivables rose 19.11% QoQ against 2.87% QoQ revenue growth, with H1 trade receivables build of Rs.276.23 cr visible in cash flow
- Healthcare revenue declined 1.41% QoQ amid the BPaaS wind-down
- Other expenses grew 35.18% YoY, outpacing revenue growth of 22.29%
- BFS segment margin dipped 283 bps QoQ to 19.39%
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.