
FSL - Firstsource Solutions Ltd. Share Price
Commercial Services & Supplies
Valuation | |
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Market Cap | 23.59 kCr |
Price/Earnings (Trailing) | 39.17 |
Price/Sales (Trailing) | 2.96 |
EV/EBITDA | 20.54 |
Price/Free Cashflow | 51.29 |
MarketCap/EBT | 31.85 |
Enterprise Value | 24.97 kCr |
Fundamentals | |
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Revenue (TTM) | 7.98 kCr |
Rev. Growth (Yr) | 29.3% |
Earnings (TTM) | 594.45 Cr |
Earnings Growth (Yr) | 20.4% |
Profitability | |
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Operating Margin | 9% |
EBT Margin | 9% |
Return on Equity | 14.51% |
Return on Assets | 7.5% |
Free Cashflow Yield | 1.95% |
Price to Sales Ratio
Revenue (Last 12 mths)
Net Income (Last 12 mths)
Growth & Returns | |
---|---|
Price Change 1W | -4.2% |
Price Change 1M | -13% |
Price Change 6M | -8.2% |
Price Change 1Y | 36.8% |
3Y Cumulative Return | 46% |
5Y Cumulative Return | 50% |
7Y Cumulative Return | 24.5% |
10Y Cumulative Return | 25.6% |
Cash Flow & Liquidity | |
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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 & Equivalents | 154.21 Cr |
Free Cash Flow (TTM) | 459.9 Cr |
Free Cash Flow/Share (TTM) | 6.6 |
Balance Sheet | |
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Total Assets | 7.92 kCr |
Total Liabilities | 3.82 kCr |
Shareholder Equity | 4.1 kCr |
Current Assets | 2.22 kCr |
Current Liabilities | 2.43 kCr |
Net PPE | 276.29 Cr |
Inventory | 0.00 |
Goodwill | 3.68 kCr |
Capital Structure & Leverage | |
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Debt Ratio | 0.19 |
Debt/Equity | 0.37 |
Interest Coverage | 4.01 |
Interest/Cashflow Ops | 5.74 |
Dividend & Shareholder Returns | |
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Dividend/Share (TTM) | 4 |
Dividend Yield | 1.18% |
Shares Dilution (1Y) | 0.00% |
Shares Dilution (3Y) | 0.00% |
Risk & Volatility | |
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Max Drawdown | -3.1% |
Drawdown Prob. (30d, 5Y) | 40.38% |
Risk Level (5Y) | 43.8% |
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:
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.
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.
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.
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.
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
Description | Share | Value |
---|---|---|
Healthcare | 33.4% | 741.8 Cr |
Banking and Financial Services | 32.5% | 722.5 Cr |
Communication, Media and Technology | 22.4% | 497 Cr |
Diverse Industries | 11.7% | 259.6 Cr |
Total | 2.2 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 Name | Holding % |
---|---|
RPSG VENTURES LIMITED | 53.66% |
LIFE INSURANCE CORPORATION OF INDIA | 3.65% |
SBI TECHNOLOGY OPPORTUNITIES FUND | 2.3% |
TATA DIGITAL INDIA FUND | 2.16% |
ICICI BANK LTD | 1.73% |
Firstsource Employee Benefit Trust | 0.89% |
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 |
---|---|---|---|---|---|---|---|---|---|
MPHASIS | Mphasis | 49.94 kCr | 14.8 kCr | -4.60% | -7.70% | 28.63 | 3.37 | - | - |
ZENSARTECH | Zensar Tech | 18.1 kCr | 5.55 kCr | -6.60% | +3.00% | 26.82 | 3.26 | - | - |
ECLERX | eClerx Services | 17.38 kCr | 3.6 kCr | +3.90% | +52.40% | 30.05 | 4.83 | - | - |
QUESS | Quess Corp | 4.5 kCr | 19.39 kCr | +1.00% | -57.60% | 24.89 | 0.23 | - | - |
HGS | Hinduja Global Solutions | 2.68 kCr | 4.96 kCr | +6.60% | -29.50% | 22.11 | 0.54 | - | - |
Sector Comparison: FSL vs Commercial Services & Supplies
Comprehensive comparison against sector averages
Comparative Metrics
FSL metrics compared to Commercial
Category | FSL | Commercial |
---|---|---|
PE | 39.17 | 25.58 |
PS | 2.96 | 0.68 |
Growth | 25.2 % | 7.7 % |
Performance Comparison
FSL vs Commercial (2021 - 2025)
- 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
Balance Sheet for Firstsource Solutions
Cash Flow for Firstsource Solutions
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.