Firstsource Solutions Limited (IN:FSL)
:FSL
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Firstsource Solutions Limited
(FSL)
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Rating:65Neutral
Price Target:
₹262.00
▼(-22.36% Downside)
Action:Reiterated
Date:05/09/26
The score is primarily driven by sound fundamentals with steady profitability and historical cash generation, tempered by rising leverage, weaker recent free-cash-flow momentum, and margin volatility. Technically, indicators and moving averages suggest a modestly improving trend, while valuation is moderate with a modest dividend yield.
Positive Factors
Recurring outsourcing model & diversified client base
Firstsource’s core outsourced BPM and CX model serves multiple end-markets, creating recurring contract revenue and client stickiness. Diversified sector exposure reduces single-industry cyclicality, supports predictable cash flows, and enables cross-selling of adjacent services over a multi‑quarter to multi‑year horizon.
Negative Factors
Rising leverage reduces flexibility
The recent material increase in total debt and higher D/E to ~0.67x weakens financial flexibility. Higher leverage raises interest and refinancing sensitivity, constrains ability to fund opportunistic M&A or cushion slowdowns, and increases risk if revenue or margins soften over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring outsourcing model & diversified client base
Firstsource’s core outsourced BPM and CX model serves multiple end-markets, creating recurring contract revenue and client stickiness. Diversified sector exposure reduces single-industry cyclicality, supports predictable cash flows, and enables cross-selling of adjacent services over a multi‑quarter to multi‑year horizon.
Read all positive factors
Firstsource Solutions Limited (FSL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹169.09B
Dividend Yield1.13%
Average Volume (3M)46.64K
Price to Earnings (P/E)24.9
Beta (1Y)1.14
Revenue Growth19.75%
EPS Growth13.19%
CountryIN
Employees24,751
SectorServices
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)9.79
Shares Outstanding696,990,840
10 Day Avg. Volume41,015
30 Day Avg. Volume46,641
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)13.4
Revenue Forecast (FY)₹111.89B
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 providing outsourced BPM/CX services to enterprise clients under service contracts. Revenue is generated from (a) ongoing managed services engagements where FSL operates defined business processes (e.g., customer servi...
Firstsource Solutions Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 95.56B | 79.72B | 63.33B | 59.86B | 58.66B |
| Gross Profit | 11.22B | 32.08B | 25.43B | 22.44B | 20.50B |
| EBITDA | 14.65B | 12.16B | 9.93B | 9.57B | 9.60B |
| Net Income | 6.74B | 5.94B | 5.15B | 5.14B | 5.37B |
Balance Sheet | |||||
| Total Assets | 93.20B | 79.22B | 60.83B | 56.64B | 57.09B |
| Cash, Cash Equivalents and Short-Term Investments | 3.19B | 2.29B | 2.08B | 2.11B | 2.14B |
| Total Debt | 29.22B | 25.69B | 15.33B | 13.93B | 17.84B |
| Total Liabilities | 49.35B | 38.24B | 23.82B | 22.97B | 26.75B |
| Stockholders Equity | 43.85B | 40.98B | 37.00B | 33.67B | 30.33B |
Cash Flow | |||||
| Free Cash Flow | 8.43B | 4.60B | 5.60B | 7.41B | 6.19B |
| Operating Cash Flow | 10.39B | 7.01B | 6.45B | 7.95B | 7.04B |
| Investing Cash Flow | -4.55B | -7.46B | -579.93M | 163.53M | -5.95B |
| Financing Cash Flow | -4.88B | 225.92M | -5.64B | -7.43B | -1.58B |
Firstsource Solutions Limited Technical Analysis
Negative
337.45
Price Trends
243.67
Positive
243.01
Positive
289.50
Negative
Market Momentum
-1.74
Positive
45.74
Neutral
45.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FSL, the sentiment is Negative. The current price of 337.45 is above the 20-day moving average (MA) of 253.16, above the 50-day MA of 243.67, and above the 200-day MA of 289.50, indicating a neutral trend. The MACD of -1.74 indicates Positive momentum. The RSI at 45.74 is Neutral, neither overbought nor oversold. The STOCH value of 45.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹201.21B | 14.37 | ― | 1.32% | 6.59% | 0.76% | |
74 Outperform | ₹130.49B | 18.45 | ― | 0.02% | 22.32% | 32.16% | |
67 Neutral | ₹102.22B | 29.42 | ― | 0.79% | 23.00% | 15.55% | |
65 Neutral | ₹169.09B | 24.92 | ― | 1.13% | 19.75% | 13.19% | |
62 Neutral | ₹72.23B | 15.68 | ― | 0.94% | 9.46% | 11.60% | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% | |
52 Neutral | ₹19.90B | 61.43 | ― | 1.51% | -2.20% | -72.57% |
* Services Sector Average
IN:FSL
Firstsource Solutions Limited
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-136.69
-35.92%
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Firstsource Solutions Limited Corporate Events
Firstsource Allots 9,042 Shares Under Employee Stock Option Plans
Jun 10, 2026
Firstsource Solutions Limited has allotted 9,042 equity shares following the exercise of stock options granted under its Employee Stock Option Scheme 2003 and Employee Stock Option Plan 2019. The allotment, approved by the trustees of the Firstsou...
Firstsource Schedules Earnings Presentation on FY26 Results
May 6, 2026
Firstsource Solutions Limited has released an earnings presentation tied to a scheduled conference call with analysts and investors to discuss its financial results for the quarter and full year ended March 31, 2026. The disclosure underscores the...
Firstsource’s General Counsel Resigns, Triggering Leadership Transition in Legal Function
Apr 28, 2026
Firstsource Solutions Limited has announced that Ms. Jagriti Bhattacharyya has resigned from her role as Executive Vice President – General Counsel and Senior Management Personnel, with her cessation effective 30 June 2026, as disclosed to t...
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.