Shares of Firstsource Solutions rallied sharply over 6% in Wednesday’s trade after the company reported a strong set of Q4 FY26 earnings and issued an optimistic growth outlook for FY27, signalling sustained momentum across its business verticals.
The company posted revenue of ₹2,835 million (US$ 283 million) for the quarter ended March 31, 2026, registering a 19.5% year-on-year growth driven by healthy demand, strong deal wins and continued client additions.
Operational performance also remained strong during the quarter. EBIT rose 29.8% YoY to ₹3,143 million, while EBIT margin improved to 12.2%, reflecting better operational efficiency and execution capabilities.
Profit after tax (PAT) came in at ₹2,052 million, up 26.9% compared to the same quarter last year. Diluted earnings per share (EPS) stood at ₹2.91. The company also reported a free cash flow to PAT conversion ratio of 101% during the quarter, highlighting strong cash generation.
Investor sentiment received an additional boost after the company provided a positive FY27 guidance. Firstsource expects constant currency revenue growth in the range of 10% to 13% for FY27. The company also guided for EBIT margins between 12.25% and 12.75%, indicating confidence in maintaining profitability despite global macroeconomic uncertainties.
Management highlighted robust deal momentum during the quarter. Firstsource signed four large deals in Q4FY26, taking the total large deals signed during FY26 to 17.
Among the major client wins were mandates from a US-based global financial technology solutions leader, a leading Australian water utility services provider, a US-based digital financial services company and a UK-based mobile virtual network operator (MVNO).
The company also added 11 new logos during the quarter, including six strategic accounts. For the full FY26, Firstsource added 47 new logos and 24 strategic accounts, more than double the strategic account additions recorded in FY25.
Commenting on the company’s performance, Sanjiv Goenka, Chairman of RP-Sanjiv Goenka Group and Firstsource Solutions, said FY26 was a defining year for the company with stronger financial performance and increasing strategic relevance among clients.
He added that enterprises are increasingly adopting integrated AI-led business models, while Firstsource’s AI-first operational platform “Kairos” positions the company to benefit from the rising adoption of agentic AI and intelligent automation solutions.
For the full FY26, Firstsource crossed the significant $1 billion annual revenue milestone. Annual revenue stood at ₹95,564 million (US$ 1,082 million), up 19.7% year-on-year, while EBIT increased 27.4% to ₹11,221 million.