Firstsource Solutions Limited (IN:FSL)
:FSL
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Firstsource Solutions Limited
(FSL)
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Rating:62Neutral
Price Target:
₹225.00
▼(-33.32% Downside)
Action:ReiteratedDate:02/14/26
The score is supported primarily by steady financial performance and solid free cash flow, but is held back by sharp technical weakness (price below key moving averages with negative MACD and very oversold momentum) and a relatively high P/E multiple that limits valuation appeal.
Positive Factors
Strong free cash flow
Consistent, strong FCF (up 9.3% TTM and ~85% of net income) supports durable capital allocation: funding technology, working capital and client-related investments, servicing debt and dividends. High FCF relative to income indicates lasting earnings quality and operational cash resilience.
Negative Factors
Rising leverage
Leverage rising to ~0.74 reduces balance-sheet flexibility and increases interest and refinancing risk. Elevated debt relative to equity limits ability to pursue strategic investments or absorb shocks, making the firm more sensitive to cash flow swings over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent, strong FCF (up 9.3% TTM and ~85% of net income) supports durable capital allocation: funding technology, working capital and client-related investments, servicing debt and dividends. High FCF relative to income indicates lasting earnings quality and operational cash resilience.
Read all positive factors
Firstsource Solutions Limited (FSL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹149.16B
Dividend Yield1.13%
Average Volume (3M)46.64K
Price to Earnings (P/E)48.0
Beta (1Y)1.19
Revenue Growth21.97%
EPS Growth10.85%
CountryIN
Employees34,651
SectorServices
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.71
Shares Outstanding696,990,840
10 Day Avg. Volume41,015
30 Day Avg. Volume46,641
Financial Highlights & Ratios
PEG Ratio2.69
Price to Book (P/B)5.76
Price to Sales (P/S)2.96
P/FCF Ratio51.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹330.00Price Target Upside-2.21% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)13.18
Revenue Forecast (FY)₹110.48B
Firstsource Solutions Limited Business Overview & Revenue Model
Company Description
Firstsource Solutions Limited provides business process management services in the United Kingdom, the United States, Asia, and internationally. The company offers various services across the customer lifecycle, including acquisition, account serv...
How the Company Makes Money
FSL makes money by providing outsourced business services to enterprise clients under commercial contracts for delivering people- and technology-enabled process operations. Its primary revenue streams typically include: (1) customer experience and...
Firstsource Solutions Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 91.68B | 79.72B | 63.33B | 59.86B | 58.66B | 50.33B |
| Gross Profit | 32.51B | 32.08B | 25.43B | 22.44B | 20.50B | 16.42B |
| EBITDA | 13.72B | 12.16B | 9.93B | 9.57B | 9.60B | 6.90B |
| Net Income | 6.30B | 5.94B | 5.15B | 5.14B | 5.37B | 3.62B |
Balance Sheet | ||||||
| Total Assets | 87.91B | 79.22B | 60.83B | 56.64B | 57.09B | 48.30B |
| Cash, Cash Equivalents and Short-Term Investments | 4.09B | 2.29B | 2.08B | 2.11B | 2.14B | 2.04B |
| Total Debt | 33.25B | 25.69B | 15.33B | 13.93B | 17.84B | 11.94B |
| Total Liabilities | 42.95B | 38.24B | 23.82B | 22.97B | 26.75B | 20.30B |
| Stockholders Equity | 44.96B | 40.98B | 37.00B | 33.67B | 30.33B | 27.99B |
Cash Flow | ||||||
| Free Cash Flow | 10.02B | 4.60B | 5.60B | 7.41B | 6.19B | 8.02B |
| Operating Cash Flow | 11.78B | 7.01B | 6.45B | 7.95B | 7.04B | 9.76B |
| Investing Cash Flow | -4.62B | -7.46B | -579.93M | 163.53M | -5.95B | -3.50B |
| Financing Cash Flow | -5.71B | 225.92M | -5.64B | -7.43B | -1.58B | -6.89B |
Firstsource Solutions Limited Technical Analysis
Positive
337.45
Price Trends
235.88
Positive
282.72
Negative
313.92
Negative
Market Momentum
-0.73
Negative
57.12
Neutral
64.15
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 337.45 is above the 20-day moving average (MA) of 220.55, above the 50-day MA of 235.88, and above the 200-day MA of 313.92, indicating a neutral trend. The MACD of -0.73 indicates Negative momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 64.15 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹188.57B | 36.53 | ― | 1.32% | 7.29% | 0.32% | |
70 Outperform | ₹74.55B | 18.01 | ― | 0.94% | 8.65% | 13.08% | |
69 Neutral | ₹139.19B | 28.61 | ― | 0.02% | 20.84% | 30.79% | |
62 Neutral | ₹149.16B | 48.02 | ― | 1.13% | 21.97% | 10.85% | |
60 Neutral | ₹103.97B | 47.77 | ― | 0.79% | 30.48% | 20.51% | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% | |
55 Neutral | ₹19.13B | 12.17 | ― | 1.51% | 0.97% | -78.30% |
* Services Sector Average
IN:FSL
Firstsource Solutions Limited
211.95
-132.33
-38.44%
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Computer Age Management Services Ltd
760.90
-26.11
-3.32%
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1,448.10
147.30
11.32%
IN:HGS
Hinduja Global Solutions Limited
409.05
-83.85
-17.01%
IN:RAILTEL
RailTel Corp. of India Ltd.
332.35
30.82
10.22%
IN:TCI
Transport Corporation of India Limited
942.25
-117.68
-11.10%
Firstsource Solutions Limited Corporate Events
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...
Firstsource Unveils Full-Stack AI Operating Model to Underwrite Enterprise Outcomes
Mar 19, 2026
Firstsource Solutions has launched “Intelligence That Operates,” a full-stack, agent-first operating model aimed at closing the gap between rapidly advancing AI capabilities and the limited impact many enterprises see in day-to-day ope...
Firstsource Schedules Non-Deal Investor Meeting With Axis Mutual Fund
Mar 19, 2026
Firstsource Solutions Limited has notified the stock exchanges that its key managerial personnel will participate in a scheduled analyst and institutional investor meeting on 27 March 2026. The virtual one-on-one session, arranged as a non-deal in...
Firstsource joins top 1% globally in S&P Global ESG rankings, secures third straight Sustainability Yearbook listing
Mar 5, 2026
Firstsource Solutions Limited, a global business process management and transformational solutions provider under the RP-Sanjiv Goenka Group, serves clients across healthcare, financial services, communications, media, technology, retail, and othe...
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.