Firstsource Solutions Q1 Results: FY27 revenue, margin guidance maintained; Stock falls 12%

Shares of Firstsource Solutions Ltd. fell as much as 8% on Thursday, August 6, in response to the June quarter results that the company reported during market hours.

For the full financial year, Firstsource has maintained its constant currency revenue growth guidance to be between 10% to 13%, while EBIT margins are likely to be between 12.25% to 12.75%.

During the June quarter, Firstsource reported a 4.5% decline in its revenue to ₹2,725 crore from ₹2,853 crore in the previous quarter.

Earnings Before Interest and Tax (EBIT) during the quarter stood at ₹337 crore, up 7.2% on a sequential basis, while EBIT margins remained steady at 12.3% from 12.2% in the previous quarter.

Net profit for the period fell 19% to ₹166 crore from ₹205 crore earlier.

In US Dollar terms, Firstsource reported revenue of $288 million, implying a constant currency growth of 2.2% on a sequential basis.

During the quarter, Firstsource bagged a large transformative deal with a leading UK-based benefits and pensions administration provider for end-to-end back-office transformation and resource optimization.

The company also won a large deal from a leading academic medical center in the US, for insurance follow-up, denials management, and complex claims resolution. This is a new logo for the company, as per its investor presentation.

Overall deal wins have not been disclosed.

At the end of the June quarter, the company had a headcount of 36,875, with a sequential headcount addition of 670 and a year-on-year headcount addition of 2,380. Employee attrition on a trailing 12-month basis stood at 33.1%, which is for employees in employment for over 180 days.

Shares of Firstsource Solutions are trading 7.8% lower after the results announcement at ₹312.8. The stock has risen 28% over the last one month.