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Firstsource Solutions Limited
(FSL)
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Rating:62Neutral
Price Target:
₹301.00
▲(18.60% Upside)
Action:Reiterated
Date:09/16/26
The score is driven primarily by solid operating performance and revenue growth but held back by weakening cash-flow momentum and higher leverage. Technicals are supportive on moving averages but mixed on momentum signals, and valuation is relatively expensive given the P/E and modest yield.
Positive Factors
Recurring, diversified BPM contracts
Contracted outsourcing work can provide a durable revenue base because clients typically rely on ongoing customer service, transaction processing, and back-office support. FSL’s presence across several industries also broadens demand sources and supports scale as client volumes and process complexity increase.
Negative Factors
Declining free cash flow and low operating cash flow
The sharp decline in free cash flow and relatively low operating cash flow conversion weaken the near-term funding profile even though accounting earnings remain profitable. If this persists, FSL may have less internally generated cash available for investment, debt reduction, or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified BPM contracts
Contracted outsourcing work can provide a durable revenue base because clients typically rely on ongoing customer service, transaction processing, and back-office support. FSL’s presence across several industries also broadens demand sources and supports scale as client volumes and process complexity increase.
Read all positive factors
Firstsource Solutions Limited (FSL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹202.34B
Dividend Yield1.89%
Average Volume (3M)206.90K
Price to Earnings (P/E)29.8
Beta (1Y)1.30
Revenue Growth19.71%
EPS Growth6.53%
CountryIN
Employees36,205
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)9.73
Shares Outstanding696,990,840
10 Day Avg. Volume206,835
30 Day Avg. Volume206,898
Financial Highlights & Ratios
PEG Ratio1.58
Price to Book (P/B)3.22
Price to Sales (P/S)1.48
P/FCF Ratio16.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹340.00Price Target Upside33.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)13.07
Revenue Forecast (FY)₹113.09B
Firstsource Solutions Limited Business Overview & Revenue Model
Company Description
Firstsource Solutions Limited provides tech-enabled business processes in India, the United Kingdom, the United States, the United Arab Emirates, and internationally. It operates through Healthcare; Banking and Financial Services; Communication, M...
How the Company Makes Money
FSL primarily makes money by selling outsourced business process services to enterprise clients under contracted commercial arrangements. Revenue is generated from delivering recurring services such as customer service/contact center support (inbo...
Firstsource Solutions Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.88B | 95.56B | 79.72B | 63.33B | 59.86B | 58.66B |
| Gross Profit | 19.54B | 11.22B | 32.08B | 25.43B | 22.44B | 20.50B |
| EBITDA | 15.63B | 14.65B | 12.16B | 9.93B | 9.57B | 9.60B |
| Net Income | 6.71B | 6.74B | 5.94B | 5.15B | 5.14B | 5.37B |
Balance Sheet | ||||||
| Total Assets | 94.68B | 93.20B | 79.22B | 60.83B | 56.64B | 57.09B |
| Cash, Cash Equivalents and Short-Term Investments | 3.16B | 3.19B | 2.29B | 2.08B | 2.11B | 2.14B |
| Total Debt | 29.79B | 29.22B | 25.69B | 15.33B | 13.93B | 17.84B |
| Total Liabilities | 48.53B | 49.35B | 38.24B | 23.82B | 22.97B | 26.75B |
| Stockholders Equity | 46.15B | 43.85B | 40.98B | 37.00B | 33.67B | 30.33B |
Cash Flow | ||||||
| Free Cash Flow | 5.62B | 8.43B | 4.60B | 5.60B | 7.41B | 6.19B |
| Operating Cash Flow | 7.82B | 10.39B | 7.01B | 6.45B | 7.95B | 7.04B |
| Investing Cash Flow | -4.84B | -4.55B | -7.46B | -579.93M | 163.53M | -5.95B |
| Financing Cash Flow | -2.82B | -4.88B | 225.92M | -5.64B | -7.43B | -1.58B |
Firstsource Solutions Limited Technical Analysis
Positive
253.80
Price Trends
268.87
Positive
265.39
Positive
259.89
Positive
Market Momentum
5.86
Negative
62.34
Neutral
65.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FSL, the sentiment is Positive. The current price of 253.8 is below the 20-day moving average (MA) of 270.29, below the 50-day MA of 268.87, and below the 200-day MA of 259.89, indicating a bullish trend. The MACD of 5.86 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 65.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:FSL.
Firstsource Solutions Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ₹177.96B | 24.14 | ― | 0.05% | 23.20% | 29.28% | |
73 Outperform | ₹360.93B | 26.78 | ― | 3.05% | ― | ― | |
71 Outperform | ₹1.88T | 14.89 | ― | 1.05% | 8.22% | -1.14% | |
70 Neutral | ₹476.40B | 24.74 | ― | 2.49% | 13.69% | 9.34% | |
65 Neutral | ₹42.06B | 19.44 | ― | 0.70% | 13.17% | 1.95% | |
62 Neutral | ₹202.34B | 29.85 | ― | 1.89% | 19.71% | 6.53% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:FSL
Firstsource Solutions Limited
290.30
-54.91
-15.91%
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Firstsource Solutions Limited Corporate Events
Firstsource Schedules September Investor and Analyst Meetings
Sep 4, 2026
Firstsource Solutions Limited has disclosed to Indian stock exchanges that its key managerial personnel will participate in a series of analyst and institutional investor meetings in September 2026. These interactions include group conferences and...
Firstsource’s 25th AGM Clears Financials, Dividend and Director Tenure
Aug 6, 2026
Firstsource Solutions Limited conducted its 25th Annual General Meeting on 6 August 2026 via video conferencing in compliance with MCA and SEBI guidelines, with 96 shareholders participating and full quorum. The meeting underscored the companyR...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.