Firstsource Solutions Q2 PAT Jumps 29.7% YoY

Revenue grew to ₹28,306.37 million, and Profit After Tax rose to ₹2,324.40 million.

Reader Takeaway: Strong revenue growth and deal momentum drive outlook, but high voluntary attrition remains a key monitoring point.

What just happened

Firstsource Solutions delivered strong second-quarter financial results for the period ended September 30, 2026. Consolidated revenue grew 22.2% to ₹28,306.37 million compared to the previous year. Profit after tax reached ₹2,324.40 million, marking a 29.7% increase. The company maintained strong momentum with 39,937 employees on its payroll, a net addition of 3,062 staff this quarter.

Why this matters

The company’s ability to secure four large deals for the seventh consecutive quarter underscores its competitive positioning in technology-led solutions. Management’s decision to increase the lower end of the FY27 revenue growth guidance (now 10.5% to 13%) signals strong confidence in demand across its banking, healthcare, and technology segments.

Segment Performance

• Banking and Financial Services: Revenue of ₹10,047.02 million, the largest contributor.
• Healthcare: Revenue of ₹9,080.49 million, showing steady growth.
• Communication, Media and Technology: Revenue reached ₹5,818.62 million.
• Diverse Industries: Contributed ₹3,637.23 million to the total revenue pool.

Risks to watch

While top-line growth is robust, the company reported a voluntary attrition rate of 28.4%. Investors should watch how this turnover affects operational costs and efficiency in the coming quarters. Furthermore, the firm aims for an EBIT margin band of 12.25% to 12.75%, which will require disciplined execution as the company continues to scale.

What to track next

Watch for the company's ability to convert new logo additions into long-term revenue streams and whether they can successfully lower attrition rates while maintaining their newly updated margin targets.