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Informist, Wendesday, Aug. 5, 2026

By Shruti Nair

MUMBAI – Firstsource Solutions Ltd. is expected to report a modest sequential jump in its consolidated net profit for the June quarter, according to brokerages tracking the firm. The business process management company's revenues are also seen growing modestly on a sequential basis, supported by the banking, financial services, and insurance vertical and a ramp-up in deals. Notably, the company's revenue growth is seen even slower in constant currency terms for the June quarter with brokerages anticipating weak performance of the healthcare segment. On a yearly basis, both the top line and bottom line are seen growing sharply.

The RP-Sanjiv Goenka Group company is expected to report a consolidated net profit of INR 2.26 billion for the Juen quarter, up nearly 10% on quarter, according to the average of estimates from seven brokerages. On year, the bottom line is seen up over 33%. The highest estimate for the bottom line is INR 2.34 billion from Nuvama Wealth Management Ltd., which foresees the BFSI segment being the growth driver. This view is echoed by Kotak Securities Ltd. which also expects large deal ramp-ups in the UK as well as stability in the communication, media, and technology segment to aid growth. In the March quarter, the company's BFSI segment had accounted for over 32% of its revenue from operations.

The lowest estimate for the net profit is INR 2.08 billion from Dolat Capital Market Pvt. Ltd., which expects the profit margin to be impacted due to deal ramp-up costs and continued expenditure from the integration of TeleMedik. In January, Firstsource acquired Puerto Rico-based healthcare technology player TeleMedik, which has operations in its home country and in the US.

Firstsource's consolidated revenues for the June quarter are seen at INR 27.30 billion, up 6% from the March quarter. On year, the top line is seen up over 23%. The highest estimate for the top line is INR 27.40 billion from Dolat Capital and the lowest is INR 27.13 billion from Nomura Equity Research. Both JM Financial and Kotak Securities expect large deal ramp-ups in the UK to boost revenue growth. On the other hand, Nuvama foresees some headwinds in the healthcare vertical limiting growth. The healthcare segment accounted for over 34% of the company's sales in the March quarter and is the largest segment for the company.

In constant currency terms, most brokerages expect Firstsource Solutions to post a quarterly growth of 2.1–2.2%, down from over 3% growth in the March quarter. Both Nuvama and Kotak expect the management to maintain its on-year revenue growth guidance of 10-13% for the financial year 2026-27 (Apr-Jun) in constant currency terms and factor in a 2% inorganic growth.

EBITDA, EBIT Margins

For the June quarter, Firstsource Solutions' consolidated earnings before interest, taxes, depreciation, and amortisation are seen at INR 4.58 billion, according to the average of five estimates, up over 6% sequentially from INR 4.30 billion for the March quarter. The highest estimate for the EBITDA is INR 4.81 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 4.47 billion from Emkay Global Financial Services Ltd. On year, the EBITDA is seen up 32%.

The company's EBIT margin is seen expanding 10-20 basis points from 12.2% in the March quarter, according to brokerages. Kotak Securities sees a 10 bps margin improvement on the back of operating efficiencies and the depreciation of the rupee. However, the brokerage also expects deal ramp-up costs to partly offset the foreseen improvement. JM Financial expects the margin to improve for these reasons and expects the company to deliver a margin of 12.2% in FY27.

Firstsource Solutions is a tech-enabled business process management company that offers services across several verticals, such as healthcare, banking and financial services, and technology, among others. The company will declare its June quarter results Thursday. Investors will watch out for management commentary on deal pipeline and conversion trends, timelines for the ramp-up of large deals in the healthcare vertical, and the potential impact of the adoption of artificial intelligence on its business.

At 0919 IST, shares of the company traded at INR 338.20, up more than 2% on the National Stock Exchange. The stock has gained almost 39% since the company detailed its March quarter results on May 6.

All seven brokerage reports on the company available with Informist have a "buy" or an equivalent recommendation on the stock with an average target price of INR 296 per share. The current market price of the stock is already 12% higher than the average target price.

The following are the Apr-Jun earnings estimates for Firstsource Solutions from seven brokerages, in descending order of the estimate of net profit, in INR billion:

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US$1 = INR 95.38

Edited by Shubhayan Bhattacharya

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