Firstsource Solutions shares tumble over 17% as Q1 profit falls 2% YoY to ₹166 crore; check June quarter results

It posted a 2% year-on-year (YoY) decline in its consolidated net profit to ₹165.91 crore during the quarter under review, compared with ₹169.33 crore in the June quarter of the 2025-26 fiscal year (Q1 FY26).

Sequentially, the company saw its profit decline 19% quarter-on-quarter (QoQ) from ₹205.24 crore in the fourth quarter of FY26 (Q4 FY26).

Its revenue from operations advanced 22.9% YoY to ₹2,724.9 crore in the June FY27 quarter, as against ₹2,217.7 crore in the same period of the preceding fiscal year. It jumped 5.5% QoQ from ₹2,583.5 crore in the quarter-ago period, as per the investor presentation.

The firm’s revenue in constant currency terms jumped 12% YoY to $288 million for the reporting quarter, from $259 million in the fiscal quarter of FY26.

At an operational level, its EBIT (earnings before interest and taxes) stood at ₹336.7 crore in Q1 FY27, marking a 34.8% YoY increase from ₹249.8 crore in the year-ago period. It rose 7.1% QoQ from ₹314.3 crore in Q4 FY26.

Its EBIT margin expanded by 110 basis points (bps) YoY to 12.4% during the quarter, in comparison to 11.3% in Q1 FY26. It grew by 20 bps from 12.2% in the preceding quarter.

Geographically speaking, North America continued to be its largest market, contributing 66.4% to its revenue in the quarter ended June 30, 2026. It was followed by the Europe, the Middle East, and Africa (EMEA) market at 31.7% and the rest of the world (RoW) at 1.9%.

Segment-wise, banking and financial services (BFS) was its biggest vertical, making up 33.2% of the company’s revenue, followed by the healthcare vertical at 33%, the Communications, Media, and Technology (CMT) segment at 20.6%, and diverse verticals at 13.2%.

Firstsource stock performance

Shares of Firstsource Solutions tumbled as much as 17.4% to hit an intraday low of ₹280.30 per unit on the National Stock Exchange (NSE) on Thursday, following the result announcement.

At around 2:11 PM, the scrip was trading 16.38% lower at ₹283.85 per equity share.

The stock has lost 4% in the past week but gained 15% over the month. On a year-to-date (YTD) basis, it has fallen 14%.

While the shares hit a 52-week high of ₹381.40 apiece on August 25, 2025, they touched a year’s low of ₹202 on March 2, 2026.

Firstsource Solutions has a total market capitalisation of ₹20,083.79 crore as of August 6, 2026, according to data on the NSE.