Firstsource Solutions (FSL) Q4 24/25 earnings summary

Executive summary

• Achieved US$1 billion annualized revenue run rate in FY25, four quarters ahead of target, with significant YoY growth in both INR and USD terms and six consecutive quarters of sequential revenue growth.

• Secured 14 large deals in FY25, including the largest-ever healthcare BPaaS contract, and expanded client base with 43 new logos and strategic wins across healthcare, financial technology, and media sectors.

• Launched UnBPOTM and Agentic AI Studio, focusing on AI-driven transformation and non-linear business models.

• Strategic expansions in ANZ, Romania, South Africa, Trinidad & Tobago, and opened a new delivery center in Melbourne.

• Recognized for sustainability and innovation, including S&P Global Sustainability Yearbook, EcoVadis silver medal, Everest Group, and Great Place to Work® awards.

Financial highlights

• Q4 FY25 revenue: ₹21,615 million (US$250 million), up 29.4% YoY; EBIT: ₹2,422 million (11.2% margin), up 32.4% YoY; PAT: ₹1,607 million (7.4% margin), up 22.6% YoY.

• FY25 revenue: ₹79,803 million (US$944 million), up 25.9% YoY; EBIT: ₹8,806 million (11.0% margin), up 26.5% YoY; PAT: ₹5,945 million (7.4% margin), up 21.7% YoY.

• Diluted EPS for FY25: ₹8.42; Q4: ₹2.28.

• Operating cash flow for FY25: ₹7,011 million; free cash flow: ₹4,775 million.

• Net debt increased to ₹13,169 million as of March 2025; CapEx more than doubled YoY to support growth.

Outlook and guidance

• FY26 revenue growth guidance: 12–15% in constant currency, with EBIT margin guidance of 11.25–12%.

• Inorganic contribution to FY26 guidance is 3%; for FY25, it was 7%.

• Margin improvement targeted through 37 levers across nine operational areas, including right-shoring, automation, and cost optimization.