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FSL

FSL - Firstsource Solutions Ltd. Share Price

Commercial Services & Supplies

368.35-1.50(-0.41%)
Market Closed as of Aug 8, 2025, 15:30 IST

Valuation

Market Cap23.59 kCr
Price/Earnings (Trailing)39.17
Price/Sales (Trailing)2.96
EV/EBITDA20.54
Price/Free Cashflow51.29
MarketCap/EBT31.85
Enterprise Value24.97 kCr

Fundamentals

Revenue (TTM)7.98 kCr
Rev. Growth (Yr)29.3%
Earnings (TTM)594.45 Cr
Earnings Growth (Yr)20.4%

Profitability

Operating Margin9%
EBT Margin9%
Return on Equity14.51%
Return on Assets7.5%
Free Cashflow Yield1.95%

Price to Sales Ratio

Latest reported: 3

Revenue (Last 12 mths)

Latest reported: 8 kCr

Net Income (Last 12 mths)

Latest reported: 594 Cr

Growth & Returns

Price Change 1W-4.2%
Price Change 1M-13%
Price Change 6M-8.2%
Price Change 1Y36.8%
3Y Cumulative Return46%
5Y Cumulative Return50%
7Y Cumulative Return24.5%
10Y Cumulative Return25.6%

Cash Flow & Liquidity

Cash Flow from Investing (TTM)-745.9 Cr
Cash Flow from Operations (TTM)701.1 Cr
Cash Flow from Financing (TTM)22.59 Cr
Cash & Equivalents154.21 Cr
Free Cash Flow (TTM)459.9 Cr
Free Cash Flow/Share (TTM)6.6

Balance Sheet

Total Assets7.92 kCr
Total Liabilities3.82 kCr
Shareholder Equity4.1 kCr
Current Assets2.22 kCr
Current Liabilities2.43 kCr
Net PPE276.29 Cr
Inventory0.00
Goodwill3.68 kCr

Capital Structure & Leverage

Debt Ratio0.19
Debt/Equity0.37
Interest Coverage4.01
Interest/Cashflow Ops5.74

Dividend & Shareholder Returns

Dividend/Share (TTM)4
Dividend Yield1.18%
Shares Dilution (1Y)0.00%
Shares Dilution (3Y)0.00%

Risk & Volatility

Max Drawdown-3.1%
Drawdown Prob. (30d, 5Y)40.38%
Risk Level (5Y)43.8%
Pros

Buy Backs: Company has bought back it's stock in the past which is a good thing.

Balance Sheet: Reasonably good balance sheet.

Technicals: Bullish SharesGuru indicator.

Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.

Past Returns: Outperforming stock! In past three years, the stock has provided 46% return compared to 14.6% by NIFTY 50.

Size: Market Cap wise it is among the top 20% companies of india.

Growth: Good revenue growth. With 34.7% growth over past three years, the company is going strong.

Cons

Momentum: Stock is suffering a negative price momentum. Stock is down -13% in last 30 days.

The Good, Bad and Ugly
Growth
Measures how quickly a company is expanding through metrics like revenue growth, earnings growth, and cash flow growth over time. Strong growth can indicate future potential.
Profitability
Shows how efficiently a company turns business activities into profit, using metrics like profit margins, return on equity (ROE), and return on assets (ROA).
Size
Indicates the company's market presence through metrics like market capitalization, total assets, and revenue. Size can influence stability and market influence.
Dilution Rank
Tracks how much the company's shares have increased or decreased over time. Lower dilution means existing shareholders maintain stronger ownership stakes.
Balance Sheet
Evaluates the company's financial health by analyzing assets, debts, and equity. A strong balance sheet indicates financial stability and flexibility.
Momentum
Measures the strength and speed of price movements, showing whether the stock is gaining or losing market favor over different time periods.
Technicals
Analyzes price patterns, trading volumes, and other market indicators to identify potential trading opportunities and market trends.
Smart Money
Tracks the investment activities of institutional investors, hedge funds, and other large financial players who often have deep research capabilities.
Insider Trading
Monitors buying and selling of company shares by executives, directors, and other insiders who may have unique insights into the company's prospects.

Investor Care

Dividend Yield1.18%
Dividend/Share (TTM)4
Shares Dilution (1Y)0.00%
Earnings/Share (TTM)8.64

Financial Health

Current Ratio0.92
Debt/Equity0.37

Technical Indicators

RSI (14d)23.08
RSI (5d)0.00
RSI (21d)27.48
MACD SignalSell
Stochastic Oscillator SignalBuy
Grufity SignalBuy
RSI SignalBuy
RSI5 SignalBuy
RSI21 SignalBuy
SMA 5 SignalSell
SMA 10 SignalSell
SMA 20 SignalSell
SMA 50 SignalSell
SMA 100 SignalSell

Summary of Latest Earnings Report from Firstsource Solutions

Summary of Firstsource Solutions's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.

Last updated:

Management's outlook for FY26 indicates an expected revenue growth of 12% to 15% in constant currency terms, with an EBIT margin projected to be 11.25% to 12%. Ritesh Idnani, MD & CEO, highlighted that the company achieved an annualized revenue run rate of US$1 billion, four quarters ahead of its target for Q4FY26.

Key forward-looking points provided by management include:

  1. Deal Wins: In FY25, Firstsource secured 14 large deals, with five signed in Q4 alone, including their largest healthcare deal to date with an ACV exceeding $50 million. The total ACV intake for FY25 was the highest in the company's history.

  2. Growth Areas: Management emphasized that the healthcare vertical showed significant potential with anticipated growth, driven by an increase in large relationships and enhanced service offerings in revenue cycle management, particularly as healthcare providers consolidate under larger health systems.

  3. Client Diversification: The company has reduced its reliance on top clients, with the share of revenues from its top five clients decreasing to 29.4% from 36.4%, and from the top ten clients down to 43.7% from 52.6% in the previous year.

  4. Transformative Deals: Some of the recent large deals, including BPaaS contracts, are expected to have a staggered ramp-up, contributing to revenue visibility in the long term but impacting immediate growth metrics.

  5. Margin Improvement: The management aims to improve margins by 50 to 75 basis points each year, striving to align them with peer group performance over the next few years.

Overall, the company is focused on leveraging its growing deal pipeline and market recognition to sustain growth amid macro uncertainties.

Last updated:

Here are the major questions asked in the Q&A section of the earnings transcript along with their detailed answers:


Question 1: Vibhor Singhal: "...Does this revenue size work in our favor in an environment like this in which there is an overall macro overhang and more of vendor consolidation?"

Answer: I believe our size at $1 billion allows us to engage with clients effectively without being bogged down by bureaucracy. This strategy has helped us maintain growth even against larger competitors. We focus on showcasing our strengths in execution and deep domain knowledge, which gives us leverage to expand both existing client relationships and acquire new logos. We continue to see opportunities in this environment, which aids in our market share growth.


Question 2: Girish Pai: "...FY26 guidance of 12% to 15%, how much of this is inorganic?"

Answer: For FY26, we expect about 3% of our growth to come from inorganic sources. In FY25, approximately 7% of our growth was attributable to acquisitions. The guidance reflects our visibility into the business, factoring in the nature of the large, transformative deal wins we've recently secured.


Question 3: Manik Taneja: "...Could you talk about the margin outlook across segments for FY26?"

Answer: We expect margins to improve across the board, particularly in healthcare and utilities, because of our strategic initiatives. While we anticipate margin stability in financial services, the agility we've gained in CMT will also enhance margins. Given historical performance and our focus on operational efficiencies, we are confident margins will trend upward.


Question 4: Shradha: "...On the deals that we closed this quarter, is there any upfront investment or employee takeover?"

Answer: Yes, large deals often involve initial investments and transitions. However, we expect these deals, including the BPaaS deal, to align with our margins. The revenue models will have varying timelines for ramp-up but are structured to eventually support targeted margin levels that reflect our overall company standards.


Question 5: Dipesh Mehta: "...Healthcare provider business was soft, can you provide an update?"

Answer: The healthcare market, especially for providers, remains expansive. We're seeing a trend where more physicians are becoming part of larger systems, which provides a significant opportunity for us. Additionally, our tech-led initiatives are positioned to capture and drive efficiency within these evolving structures, setting a solid foundation for growth in future quarters.


These responses highlight the strategic focus, expectations for growth, and operational nuances articulated by management during the earnings call.

Revenue Breakdown

Analysis of Firstsource Solutions's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.

Last Updated: Jun 30, 2025

DescriptionShareValue
Healthcare33.4%741.8 Cr
Banking and Financial Services32.5%722.5 Cr
Communication, Media and Technology22.4%497 Cr
Diverse Industries11.7%259.6 Cr
Total2.2 kCr

Share Holdings

Understand Firstsource Solutions ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.

Holding Pattern

Share Holding Details

Shareholder NameHolding %
RPSG VENTURES LIMITED53.66%
LIFE INSURANCE CORPORATION OF INDIA3.65%
SBI TECHNOLOGY OPPORTUNITIES FUND2.3%
TATA DIGITAL INDIA FUND2.16%
ICICI BANK LTD1.73%
Firstsource Employee Benefit Trust0.89%

Overall Distribution

Distribution across major stakeholders

Ownership Distribution

Distribution across major institutional holders

Is Firstsource Solutions Better than it's peers?

Detailed comparison of Firstsource Solutions against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.

Ticker
Name
Mkt Cap
Revenue
Price %, 1M
Returns, 1Y
P/E
P/S
Rev 1-Yr
Inc 1-Yr
MPHASISMphasis49.94 kCr14.8 kCr-4.60%-7.70%28.633.37--
ZENSARTECHZensar Tech18.1 kCr5.55 kCr-6.60%+3.00%26.823.26--
ECLERXeClerx Services17.38 kCr3.6 kCr+3.90%+52.40%30.054.83--
QUESSQuess Corp4.5 kCr19.39 kCr+1.00%-57.60%24.890.23--
HGSHinduja Global Solutions2.68 kCr4.96 kCr+6.60%-29.50%22.110.54--

Sector Comparison: FSL vs Commercial Services & Supplies

Comprehensive comparison against sector averages

Comparative Metrics

FSL metrics compared to Commercial

CategoryFSLCommercial
PE39.1725.58
PS2.960.68
Growth25.2 %7.7 %
67% metrics above sector average

Performance Comparison

FSL vs Commercial (2021 - 2025)

FSL outperforms the broader Commercial sector, although its performance has declined by 66.3% from the previous year.

Key Insights
  • 1. FSL is among the Top 3 Commercial Services & Supplies companies by market cap.
  • 2. The company holds a market share of 3.4% in Commercial Services & Supplies.
  • 3. In last one year, the company has had an above average growth that other Commercial Services & Supplies companies.

Income Statement for Firstsource Solutions

Consolidated figures (in Rs. Crores) /
Standalone figures (in Rs. Crores) /

Balance Sheet for Firstsource Solutions

Consolidated figures (in Rs. Crores) /
Standalone figures (in Rs. Crores) /

Cash Flow for Firstsource Solutions

Consolidated figures (in Rs. Crores) /
Standalone figures (in Rs. Crores) /

What does Firstsource Solutions Ltd. do?

Firstsource Solutions Limited provides tech-enabled business processes in India, the United Kingdom, the United States, Asia, South Africa, the Philippines, Australia, New Zealand, and internationally. It operates through Banking and Financial Services; Healthcare; Communication, Media and Technology; and Diverse Industries segments. The company offers various banking and financial services and solutions, including customer acquisition, onboarding, transaction processing and payments, disputes and complaints, servicing, bereavement and power of attorney, fraud and financial crime, and account closure; lending services, such as origination, post-closing, title, settlement, and quality control and due diligence services; and collections. It also provides health plan services comprising claims operations, enrollment and billing, customer service, care coordination, credential provider, data and network management, benefit coding, maintenance, coverage, medicaid enrollment, prior authorization, medical coding, denial management and prevention, patient billing and collections, and receivables management; and communication services, such as sales and retention, tech ops, receivables and collections management, and generative AI. In addition, the company offers media/edtech solutions, including content development and enrichment, learners support, student pre-registration and enrollment, and digital collections; and other services for diversified industries, such as retention and loyalty, meter-to-cash operations, crisis/contingency management, smart meter conversions, debt management, and complaints handling; and consulting services. It serves to banking and financial services, healthcare, communications, media and technology, insurance, energy, and utilities sectors. The company was formerly known as ICICI Onesource Limited and changed its name to Firstsource Solutions Limited in November 2006. The company was incorporated in 2001 and is based in Mumbai, India. Firstsource Solutions Limited is a subsidiary of RPSG Ventures Limited.

Industry Group:Commercial Services & Supplies
Employees:32,898
Website:www.firstsource.com