Firstsource Solutions reports ninth consecutive quarter of double-digit revenue growth, driven by strategic AI deployment and strong deal activity, despite healthcare sector challenges and rising net debt.
Firstsource Solutions reported its ninth straight quarter of double-digit revenue growth, as the Indian business process outsourcing company said quarterly revenue rose 22.9% from a year earlier to ₹27.2 billion and increased 5.5% from the previous quarter. The company also said EBIT margin improved for a seventh consecutive quarter to 12.4%, while management reiterated full-year guidance for 10% to 13% constant-currency growth and an EBIT margin of 12.25% to 12.75%.
The latest results extend a run of momentum that began well before the current quarter. In the previous fiscal year, Firstsource posted revenue growth of 19.7% to ₹95.6 billion and added 47 new clients, including 24 strategic accounts, according to the company’s year-end release. It also reported strong first-half and second-quarter performances, with revenue growth above 20% and deal pipeline strength topping US$1 billion in annual contract value, reinforcing a trend of healthy demand heading into fiscal 2027.
Management pointed to especially strong deal activity in the June quarter, with six consecutive periods of at least four large wins and the highest annual contract value intake in four quarters. Firstsource added 12 new logos in the period, including three strategic clients, and said its base of customers spending more than US$5 million a year has risen sharply over the past two years. The company has also leaned heavily into artificial intelligence, saying production-grade AI platforms are now running for 14 of the top 20 US mortgage lenders and 10 of the top 15 US health plans.
Not all the news was positive. Firstsource booked one-off charges tied to a healthcare programme termination and a separate contractual dispute, while healthcare revenue fell sequentially in constant currency. The company also said voluntary attrition remained elevated at 27.5% and net debt rose modestly to ₹17.1 billion. Even so, chief executive Ritesh Idnani said the healthcare issue was an isolated case and argued that a robust pipeline, fast ramp-up of new deals and broader geographic diversification , including stronger growth in Europe, Australia and South Africa , support the full-year outlook.
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