Firstsource Solutions Limited (FSL) AI Stock Analysis

• Market Cap: ₹250.25B
• Dividend Yield: 1.09%
• Average Volume (3M): 58.58K
• Price to Earnings (P/E): 39.3
• Beta (1Y): 1.28
• Revenue Growth: 27.41%
• EPS Growth: 19.27%
• Country: IN
• Employees: 34,651
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 2.40
• Shares Outstanding: 696,990,840
• 10 Day Avg. Volume: 71,027
• 30 Day Avg. Volume: 58,577
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹401.00
• Price Target Upside: 11.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: ₹392.00 ▲(9.18% Upside)

Firstsource Solutions Limited's overall stock score is driven by strong financial performance, which is the most significant factor. Technical analysis and valuation present mixed signals, with the stock appearing somewhat expensive and showing no strong technical trend. The absence of earnings call and corporate events data limits additional insights.

Firstsource Solutions Limited Business Overview & Revenue Model

Company Description

Firstsource 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 Money

Firstsource 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 demonstrates strong financial health characterized by robust revenue growth, effective cost management, and solid profitability margins. The balance sheet reflects financial stability with a sound equity base and manageable leverage. Cash flow metrics underscore the company's ability to generate and manage cash effectively, supporting operational and strategic objectives. Despite the positive financial trajectory, attention to growing debt levels and capital expenditures is advisable.

Income Statement

Firstsource Solutions Limited has demonstrated a strong revenue growth rate with consistent increases in total revenue over the years, culminating in a 25.9% growth from 2024 to 2025. The company maintains a healthy gross profit margin of 37.4% for 2025, and its net profit margin has improved to 7.4%, indicating enhanced profitability. Additionally, the EBIT margin is robust at 37.4%, showcasing effective cost management. However, the EBITDA margin is notably lower at 15.1%, suggesting room for improving operational efficiencies.

Balance Sheet

The company maintains a solid equity base, with an equity ratio of 51.7% in 2025, reflecting financial stability. The debt-to-equity ratio stands at a manageable 0.63, indicating a moderate level of leverage that aligns with industry standards. Return on equity (ROE) is at 14.5%, showcasing efficient use of shareholder funds to generate profits. Despite the positive metrics, the increase in total debt over the years suggests a growing reliance on borrowed funds, which warrants close monitoring.

Cash Flow

Firstsource Solutions Limited exhibits strong cash flow management, with an operating cash flow to net income ratio of 1.18, indicating healthy cash conversion from earnings. The free cash flow to net income ratio is 0.77, reflecting solid cash generation capabilities. The company has achieved a significant free cash flow growth rate of 25.1% from 2024 to 2025, highlighting its ability to generate liquidity for reinvestment and debt servicing. However, the negative investing cash flow suggests substantial capital outlays, which may impact future cash reserves.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	84.00B	79.80B	63.36B	60.22B	59.21B	50.33B
Gross Profit	25.63B	29.85B	15.68B	12.92B	15.31B	16.42B
EBITDA	12.87B	12.08B	9.93B	9.89B	9.60B	7.25B
Net Income	6.29B	5.94B	5.15B	5.14B	5.37B	3.62B
Balance Sheet
Total Assets	79.85B	79.22B	60.83B	56.64B	57.09B	48.30B
Cash, Cash Equivalents and Short-Term Investments	3.24B	2.29B	2.08B	2.11B	2.14B	2.04B
Total Debt	23.95B	25.69B	15.33B	13.93B	17.84B	11.94B
Total Liabilities	38.19B	38.24B	23.82B	22.97B	26.75B	20.30B
Stockholders Equity	41.65B	40.98B	37.00B	33.67B	30.33B	27.99B
Cash Flow
Free Cash Flow	8.03B	4.60B	5.60B	7.41B	6.19B	8.02B
Operating Cash Flow	10.53B	7.01B	6.45B	7.95B	7.04B	9.76B
Investing Cash Flow	-7.17B	-7.46B	-579.93M	163.53M	-5.95B	-3.50B
Financing Cash Flow	-2.68B	225.92M	-5.64B	-7.43B	-1.58B	-6.89B

Firstsource Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 359.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 359.05 is above the 20-day moving average (MA) of 350.59, below the 50-day MA of 363.86, and above the 200-day MA of 355.50, indicating a neutral trend. The MACD of 1.39 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 79.90 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECLERX	76 Outperform	₹190.33B	32.92		0.03%	16.39%	13.23%
FSL	70 Outperform	₹250.25B	39.30		1.09%	27.41%	19.27%
CAMS	69 Neutral	₹191.36B	40.52		1.60%	19.78%	21.62%
Sector *	66 Neutral	€4.03B	17.05	-2.44%	3.89%	1.88%	-16.39%
TCI	63 Neutral	₹86.78B	20.32		0.88%	11.32%	20.27%
RAILTEL	60 Neutral	₹111.37B	35.10		0.82%	37.80%	23.69%
HGS	52 Neutral	₹24.93B	22.01		1.30%	-4.50%	-109.54%

Firstsource Solutions Limited Corporate Events

Firstsource Solutions Announces Earnings Presentation for FY25

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

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

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.