Firstsource Solutions Limited (FSL) AI Stock Analysis

• Market Cap: ₹244.96B
• Dividend Yield: 1.14%
• Average Volume (3M): 45.30K
• Price to Earnings (P/E): 38.5
• Beta (1Y): 1.38
• 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: 41,386
• 30 Day Avg. Volume: 45,305
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹392.00
• Price Target Upside: 11.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: ₹391.00 ▲(11.25% Upside)

Firstsource Solutions Limited demonstrates strong financial performance with robust revenue growth and effective cash flow management, which are the most significant factors in its score. However, the stock's valuation appears high, and technical indicators suggest a neutral market sentiment, which tempers the overall score.

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 servicing, collection, and retentions; complaints handling and resolution, mortgage processing and invoice financing, and asset-based lending; compliance and risk management; lead management; sales conversion & onboarding; analytics and business intelligence; digital collections; dispute management; factoring & discounting; default management; and fraud management, as well as mortgage solutions including mortgage value chain origination, underwriting, title, post-closing, servicing, and collections. It also provides digitally enabled customer engagement solutions comprising eligibility & enrollment services; debt collections; digital mailroom operations; claims adjudication & adjustments; receivables management; intelligent automated; eligibility & enrollment; intelligent data capture; and telehealth tech support. In addition, the company offers customer experience management and digitally enabled contact center solutions, such as tier 1 and tier 2 customer support; self-service/contact avoidance; complaints handling and remediation; inbound and outbound sales; retention and loyalty; customer insights/analytics; and revenue generation, as well as meter 2 cash operations; self-service/digital deflection; customer insights/automation; and debt management. It serves the banking and financial services, healthcare, telecom and media, insurance, mortgage, and utilities sectors. The company was formerly known as ICICI Onesource Limited and changed its name to Firstsource Solutions Limited in November 2006. The company was incorporated in 2001 and is based in Mumbai, India. Firstsource Solutions Limited is a subsidiary of RPSG Ventures Limited.

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 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

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

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

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.

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: Negative
• Last Price: 351.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 351.45 is below the 20-day moving average (MA) of 361.77, below the 50-day MA of 357.24, and below the 200-day MA of 356.81, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 6.88 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECLERX	74 Outperform	₹197.78B	34.20	23.47%	0.02%	16.39%	13.26%
TCI	70 Outperform	₹91.55B	21.44	19.48%	0.84%	11.32%	20.27%
FSL	69 Neutral	₹244.96B	38.47	―	1.14%	27.41%	19.27%
CAMS	69 Neutral	₹188.16B	39.83	42.04%	1.63%	19.78%	21.62%
RAILTEL	67 Neutral	₹121.25B	38.22	14.99%	0.75%	37.80%	23.69%
HGS	48 Neutral	₹23.60B	-88.37	1.58%	1.38%	-4.50%	-109.54%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%