FSL - Firstsour.Solu.

📊 NSE: FSL 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 22:07

💰 Financial Performance

Revenue Growth by Segment

In H1 FY25, Healthcare grew 33.6% YoY, CMT grew 22.6% YoY, and BFS grew 4% YoY (recovering from previous degrowth). For Q2 FY25, BFS contributed 33.2%, Healthcare 33.5%, CMT 21.7%, and Diverse industries 11.6% of total revenue.

Geographic Revenue Split

Revenue is highly concentrated in the US (68%) and UK/EMEA (29-32%), with the US market growing 26% YoY in Q1 FY25.

Profitability Margins

Operating EBITDA margin stood at 15.1% in FY25, consistent with FY24. Operating EBIT margin was 11.0% in FY25. PAT margins declined by 41 bps to 8.12% in FY24 due to higher interest costs.

EBITDA Margin

EBITDA margin remained stable at 15.1% in FY25 (INR 1,207.62 Cr) compared to 15.1% in FY24 (INR 956.44 Cr). Management targets a 50-75 bps EBIT expansion over the medium term.

Capital Expenditure

The company plans to furnish debt repayment of INR 80-100 Cr in FY25. Organic capex is funded through internal accruals, which are expected to be INR 500-700 Cr per annum.

Credit Rating & Borrowing

CRISIL and CARE maintain a Positive/Stable outlook. Interest coverage ratio was 7.04x to 7.3x in FY24. Finance charges increased to INR 147.87 Cr in FY25 from INR 103.38 Cr in FY24 due to higher working capital debt.

⚙️ Operational Drivers

Raw Materials

Personnel/Human Capital is the primary input, representing 62.6% of total income (INR 4,995.78 Cr in FY25).

Import Sources

Talent is sourced globally from delivery centers in India, Philippines, USA, UK, and Mexico.

Key Suppliers

Not applicable for service-based BPO model; primary 'suppliers' are the global workforce of 35,997 employees.

Capacity Expansion

Current capacity includes 35,997 employees and 51 delivery centers across 10 countries as of late 2024. Expansion is driven by nearshore delivery capabilities in retail/e-commerce via the Ascensos acquisition.

Raw Material Costs

Personnel costs increased to INR 4,995.78 Cr (62.6% of revenue) in FY25 from INR 3,909.32 Cr (61.7% of revenue) in FY24, reflecting wage inflation and headcount growth.

Manufacturing Efficiency

Efficiency is measured by operating leverage and cost efficiency measures, aiming for a 50-75 bps margin improvement through automation and offshore transition.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

14-16%

Growth Strategy

Growth will be driven by the 'FSL80' cohort (top 80 accounts) to increase share of wallet, AI infusion across all services to drive automation, and strategic acquisitions like QBSS (Revenue Cycle Management) and Ascensos (Retail/E-commerce CX).

Products & Services

Business Process Management (BPM) services, Revenue Cycle Management (RCM) for hospitals/payers, Mortgage processing, Financial Crime Compliance, and Customer Experience (CX) for retail and edtech.

Brand Portfolio

Firstsource, Ascensos, Quintessence Business Solutions and Services (QBSS).

New Products/Services

AI-driven solutions and vertical-specific language models are expected to support medium-term growth and margin unlocks.

Market Expansion

Expanding into the US Healthcare RCM market (estimated at $25 billion) and increasing nearshore delivery capabilities in the UK/Europe retail sector.

Market Share & Ranking

Prominent player in the global BPO and ITeS provider space with over 100 clients, including Fortune 500 and FTSE 100 companies.

Strategic Alliances

Acquisition of Ascensos Limited for INR 467 Cr in Q2 FY25 and QBSS in May 2024 to enhance offshore capabilities.

🌍 External Factors

Industry Trends

The BPM industry is shifting toward tech-led, offshore-centric models with AI adoption. The Healthcare RCM market is growing at double digits, and FSL is positioning to gain share from traditional players.

Competitive Landscape

Intense competition from other Indian BPO/ITeS firms and low-cost delivery centers in other countries.

Competitive Moat

Moat is built on deep domain expertise in Healthcare and BFS, a global delivery model with 35,997 employees, and long-term contracts (1-10 years) with Fortune 500 clients.