Firstsource Solutions (FSL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached ₹21,024 million ($249M), up 32% year-over-year and 7.6% sequentially in constant currency.

• EBIT margin for the quarter was 11.1%, with EBIT at ₹2,333 million, up 36.5% year-over-year.

• Profit after tax for Q3FY25 was ₹1,603 million, including a one-time gain of ₹88 million.

• Three large deals signed in Q3, with 13 new logos added, including five strategic logos with $5M+ annual revenue potential.

• Notable client wins in healthcare, consumer tech (GenAI services), and utilities; expanded business with existing clients.

Financial highlights

• Operating profit for Q3 was ₹2,333 million, up 37% year-over-year; EBIT margin at 11.1%.

• Profit after tax was ₹1,603 million, up 16% quarter-on-quarter and 25% year-over-year; includes a net one-time gain of ₹88 million.

• Free cash flow to PAT was 159% in Q3 and 78% for nine months FY25; cash balance at ₹2.5 billion, net debt at ₹6,042 million.

• Interim dividend of ₹4 per share declared.

• Earnings per share (diluted) for Q3FY25 was ₹2.27, up from ₹1.84 in Q3FY24.

Outlook and guidance

• FY25 revenue growth expected in the range of 21.8%-22.3% in constant currency.

• EBIT margin guidance maintained at 11%-11.5%.

• Margin expansion of 50-75 basis points expected in FY26, with continued investments in sales, capabilities, and technology.

• Interim dividend of ₹4 per equity share declared.