Target: ₹409
CMP: ₹357.25
Firstsource Solutions (FSOL) delivered a strong Q3 FY25 performance, reporting revenue of $249 million, exceeding our expectations. This reflects a 7.6 per cent year-over-year growth in constant currency (CC) terms and a 2.2 per cent increase in organic CC terms. Growth remained broad based across regions, with North America up 4.8 per cent, EMEA rising 15.9 per cent, and the RoW advancing 8.3 per cent.
Management remains optimistic about sustaining broad-based growth across its three core US verticals. The company secured three major deals and emphasised a strong deal pipeline, reinforcing its momentum in bookings. This growth is driven by FSOL’s deep industry and functional expertise, strategic technology partnerships, and proactive integration of automation and AI.
To enhance its AI capabilities, particularly for consumer tech clients, FSOL has acquired AccunAI, further strengthening its AI-driven solutions portfolio. Hiring momentum remains strong, with a net headcount increase of 3.8 per cent quarter-on-quarter. The company reaffirmed its FY25 EBIT margin guidance of 11–11.5 per cent and reiterated its medium-term target of expanding EBIT margins by 50–75 basis points annually in FY26