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.

• Signed 14 large deals in FY25, including the largest-ever healthcare BPaaS contract, and expanded client base with 43 new logos, 12 of which are strategic.

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

• Recognized for GenAI leadership, sustainability, and workplace excellence by S&P Global, Everest Group, and Great Place to Work®.

• Ended FY25 with 34,651 employees, 80% of net additions offshore/nearshore, and attrition rate improved to 29.8%.

Financial highlights

• Q4 FY25 revenue: ₹21,615 million (US$250 million), up 29.4% YoY; FY25 revenue: ₹79,803 million (US$944 million), up 25.9% YoY in INR and 23.3% in USD.

• Q4 EBIT margin at 11.2%, up 10 bps sequentially; FY25 EBIT margin at 11.0–11.1%, within guidance.

• FY25 PAT: ₹5,945 million (7.4% margin), up 21.7% YoY; diluted EPS for FY25: ₹8.42.

• Operating profit for FY25 at ₹8,806 million, up 26.5% YoY; operating cash flow: ₹7,011 million.

• Net debt increased to ₹13,169 million as of March 31, 2025, following higher CapEx and dividend payout.

Outlook and guidance

• FY26 revenue growth expected at 12–15% in constant currency; EBIT/operating margin guided at 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.