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Firstsource Solutions Limited (IN:FSL)
:FSL
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Firstsource Solutions Limited (FSL) AI Stock Analysis

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IN:FSL

Firstsource Solutions Limited

(FSL)

Rating:66Neutral
Price Target:
₹378.00
▲(7.98% Upside)
Firstsource Solutions Limited demonstrates strong financial performance with robust revenue growth and effective cash flow management. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The modest dividend yield offers limited income potential.

Firstsource Solutions Limited (FSL) vs. iShares MSCI India ETF (INDA)

Firstsource Solutions Limited Business Overview & Revenue Model

Company DescriptionFirstsource Solutions Limited (FSL) is a leading global provider of business process management (BPM) services. The company operates across various sectors including banking, financial services, insurance, healthcare, telecommunications, and media. FSL offers a range of services such as customer management, collections, data processing, and transaction processing, leveraging technology and analytics to enhance operational efficiency for its clients.
How the Company Makes MoneyFirstsource Solutions Limited generates revenue primarily through its business process management services, which are offered on a contract basis to clients across diverse industries. The company earns money by providing outsourced services that help organizations improve their customer experience, streamline operations, and reduce costs. Key revenue streams include fees for services such as customer support, billing and collections, back-office processing, and healthcare claims processing. Firstsource also engages in strategic partnerships and long-term contracts with major corporations, which provide a steady flow of income. The company's ability to utilize technology and analytics to deliver customized solutions is a significant factor contributing to its earnings, allowing it to offer competitive pricing and value-added services.

Firstsource Solutions Limited Financial Statement Overview

Summary
Firstsource Solutions Limited shows a robust financial performance, driven by strong revenue growth and effective cash flow management. The company maintains a stable balance sheet with prudent leverage. However, monitoring operational efficiency and investment activities is advised to sustain long-term growth and stability.
Income Statement
85
Very Positive
Firstsource Solutions Limited has demonstrated strong growth with a notable increase in total revenue from 2023 to TTM (2025), indicating a healthy upward trajectory. The company's gross profit margin and net profit margin are solid, enhancing profitability. However, the recent decrease in EBIT margin from 2024 to TTM (2025) indicates potential pressure on operational efficiency.
Balance Sheet
78
Positive
The company maintains a strong equity position with an improving equity ratio over time, reflecting stability. A moderate debt-to-equity ratio suggests manageable leverage, although the increase in total debt from previous years could pose a risk if not managed carefully.
Cash Flow
82
Very Positive
Firstsource exhibits strong cash flow management with consistent growth in free cash flow, indicating effective capital expenditure control. The operating cash flow to net income ratio is healthy, supporting profitability. However, fluctuations in investing cash flows highlight potential volatility in investment activities.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue84.00B79.80B63.36B60.22B59.21B50.33B
Gross Profit25.63B29.85B15.68B12.92B15.31B16.42B
EBITDA12.87B12.08B9.93B9.89B9.60B7.25B
Net Income6.29B5.94B5.15B5.14B5.37B3.62B
Balance Sheet
Total Assets79.85B79.22B60.83B56.64B57.09B48.30B
Cash, Cash Equivalents and Short-Term Investments3.24B2.29B2.08B2.11B2.14B2.04B
Total Debt23.95B25.69B15.33B13.93B17.84B11.94B
Total Liabilities38.19B38.24B23.82B22.97B26.75B20.30B
Stockholders Equity41.65B40.98B37.00B33.67B30.33B27.99B
Cash Flow
Free Cash Flow8.03B4.60B5.60B7.41B6.19B8.02B
Operating Cash Flow10.53B7.01B6.45B7.95B7.04B9.76B
Investing Cash Flow-7.17B-7.46B-579.93M163.53M-5.95B-3.50B
Financing Cash Flow-2.68B225.92M-5.64B-7.43B-1.58B-6.89B

Firstsource Solutions Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price350.05
Price Trends
50DMA
358.37
Negative
100DMA
361.53
Negative
200DMA
356.19
Negative
Market Momentum
MACD
0.34
Positive
RSI
44.02
Neutral
STOCH
44.00
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 350.05 is below the 20-day moving average (MA) of 363.09, below the 50-day MA of 358.37, and below the 200-day MA of 356.19, indicating a bearish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 44.00 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
₹204.62B35.38
0.02%16.39%13.26%
71
Outperform
₹88.25B20.67
0.87%11.32%20.27%
69
Neutral
₹189.66B40.16
1.62%19.78%21.62%
66
Neutral
₹243.98B38.32
1.14%27.41%19.27%
60
Neutral
₹110.53B34.84
0.83%37.80%23.69%
56
Neutral
$13.56B12.8310.03%0.92%7.13%-12.93%
52
Neutral
₹24.12B22.01
1.35%-4.50%-109.54%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:FSL
Firstsource Solutions Limited
343.90
35.97
11.68%
IN:CAMS
Computer Age Management Services Ltd
3,843.70
-330.84
-7.93%
IN:ECLERX
eClerx Services Limited
4,235.70
1,461.89
52.70%
IN:HGS
Hinduja Global Solutions Limited
524.65
-341.99
-39.46%
IN:RAILTEL
RailTel Corp. of India Ltd.
345.80
-120.10
-25.78%
IN:TCI
Transport Corporation of India Limited
1,168.55
113.68
10.78%

Firstsource Solutions Limited Corporate Events

Firstsource Solutions Announces Earnings Presentation for FY25
Apr 28, 2025

Firstsource Solutions Limited has announced an earnings presentation for analysts and investors, detailing the company’s financial results for the quarter and fiscal year ending March 31, 2025. This presentation is part of the company’s ongoing efforts to maintain transparency with stakeholders and provide insights into its financial performance and strategic positioning.

Firstsource Solutions Schedules Investor Call on Financial Results
Apr 28, 2025

Firstsource Solutions Limited has announced a conference call with analysts and investors to discuss the company’s financial results for the quarter and fiscal year ending March 31, 2025. This call, scheduled for April 28, 2025, signifies the company’s commitment to transparency and engagement with stakeholders, potentially impacting investor confidence and market perception.

Firstsource Solutions Grants 87,500 Employee Stock Options
Apr 28, 2025

Firstsource Solutions Limited has announced the grant of 87,500 stock options to eligible employees under its Employee Stock Option Plan 2019. This move, approved by the Nomination and Remuneration Committee, aims to incentivize and retain talent within the company and its subsidiaries, potentially impacting employee motivation and aligning their interests with company growth.

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.Date of analysis: Sep 06, 2025