Firstsource Solutions share price jumps 15% with 10x volumes; Q4 in focus

Firstsource Solutions shares surged over 15% on heavy volumes today amid IT rebound. Here's what's driving the rally, Q4 expectations, and analyst views on stock outlook

Firstsource Solutions Ltd (FSL) share price witnessed a sharp rally on Thursday, April 16, driven by heavy volumes. The rally in the stock also coincides with a rebound in IT shares in April 2026. 

The stock of the smallcap information technology (IT) company surged 15.57 per cent on the National Stock Exchange (NSE) to hit a high of ₹254.68 in the intraday trade. Around 23.46 million shares worth ₹593.97 crore have, thus far, changed hands on the counter on the exchange. 

Today’s trading volume in Firstsource Solutions shares was roughly 10-times more than the two-week average volume. 

With this, shares of the company are on track to post the biggest single-day gain since December  2020.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

Firstsource Solutions share price history

Firstsource Solutions shares have fallen 25 per cent over the past one year as against a 6-per cent rise in the benchmark Nifty50 index. Thus far in 2026, the share is down 24.3 per cent compared to a 5 per cent fall in the Nifty50 index. 

That said, over the past one month, Firstsource Solutions shares have jumped 16 per cent, outperforming the 50-stock index’s 5.6 per cent rally during the period. 

FSL shares hit a 52-week high of ₹403.8 per share on June 25, 2025, and a 52-week low of ₹202 on March 2, 2026. The stock trades at an adjusted price-to-earnings (P/E) of 21.85x.

Firstsource Solutions share price target

 

Analysts at ICICI Securities have a ‘Hold’ rating on the stock with a target price of ₹330 per share. 

“The management’s commentary highlights macro caution, healthcare restructuring and phased ramp-ups, indicating visibility but measured conversion. While the UnBPO strategy, Puerto Rico healthcare expansion and offshore shift (UK down 40 per cent, South Africa up 50 per cent) strengthen the medium-term story, near-term return expectations appear balanced,” the brokerage said post the company’s December quarter results. 

Firstsource Solutions is yet to disclose the date for March 2026 quarter (Q4FY26) results. 

In the previous quarter (Q3FY26), FSL’s revenues stood at $ 274 million, up 3.4 per cent quarter-on-quarter (Q-o-Q) and 10 per cent year-on-year (Y-o-Y). In constant currency (CC), the growth was 4.6 per cent Q-o-Q and 10.6 per cent Y-o-Y. 

Its Ebit margins (ex-one off from new labour code) expanded 40bps Q-o-Q to 11.9 per cent with net profit (adjusted for one-off from new labour code) at ₹220.5 crore, up 24 per cent Q-o-Q and 37.5 per cent Y-o-Y. 

Q3 saw 5 large deals (ACV over $5 million), 9 new logos, including 5 strategic ones, with potential of equal or more than $5 million revenue run-rate annually, and an exit pipeline above $1 billion. 

The BFSI and Healthcare segments, however, were sequentially soft and near-term optics are affected by provider account rationalization in healthcare segment (~50 bps FY26 revenue impact), suggesting reported momentum may remain uneven despite healthy underlying demand. 

“Accordingly, we expect dollar revenue to grow at 10.6 per cent CAGR over FY26–28,” ICIIC Securities said. 

Further, though the management maintained its target of steady 50-75 bps annual margin expansion over the medium-term, it revised Ebit margin guidance for FY26 at 11.5-12 per cent (vs 11.25-12 per cent earlier). 

The brokerage factors in Ebit margins of 11.6 per cent in FY26, 11.9 per cent in FY27, and 12.1 per cent in FY28. 

Firstsource Solutions shares: Tech outlook

 

Technically, today's rally in Firstsource share price has helped it break the sideways trend for the first time since December 2025. The stock has also surpassed its super trendline resistance on the daily scale, said Anand James, chief market strategist at Geojit Investments.

 

"Going ahead, the stock is likely to consolidate around ₹260 levels in the near-term. If surpasses, FSL stock may charge towards its 200-day moving average and next resistance level of ₹320 in the medium-term," he said.

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Firstsource Solutions Q4FY26 results preview

Looking ahead, for the recently concluded quarter, analysts at Kotak Institutional Equities expect FSL to see a 3 per cent CC growth, on a sequential basis, in organic revenue, led by seasonality BFSI and healthcare, including partial ramp-up of large deals, which may be partly offset by weakness in Retail & Utilities verticals. 

Telemedik, it said, would be consolidated for entire quarter, resulting in 1.3 per cent incremental revenues Q-o-Q. 

“We expect 30bps Q-o-Q Ebit margin improvement aided by rupee depreciation and operating efficiencies despite residual impact of wage hike. Large deal wins are likely to be in similar range as past few quarters,” it added. 

Further, the brokerage expects Firstsource to share a revenue growth guidance of 8-10 per cent CC Y-o-Y for FY27 (including ~2 per cent inorganic contribution) and Ebit margin guide in 11.75-12.25 per cent range. 

“We expect investor focus on (1) deal pipeline and conversion trends, (2) healthcare large deal ramp-up timelines and spend outlook, (3) initiatives underway to promote better cross-sell within the business, (4) uptake of UnBPO framework by clients and (5) GenAI adoption trends, likely impact of on parts of the business and mitigation measures,” KIE said. 

Global brokerage Nomura, which has a ‘Buy’ rating on FSL with a target price of ₹330, expects the company to post 3.3 per cent Q-o-Q and 13.2 per cent Y-o-Y growth in dollar revenue (3 per cent Q-o-Q CC); 10 bps Q-o-Q and 80bps Y-o-Y expansion in Ebt margin to 12 per cent; and 76.4 per cent Q-o-Q and 32.1 per cent Y-o-Y surge in Q4FY26 net profit to ₹212.2 crore. 

“Key things to watch out for would be the commentary on demand, impact of AI and Middle East war on business, deal wins, and progress on near to medium term goals,” Nomura said. 

====================  Disclaimer: Views and outlook shared belong to the brokerage/analysts and are not endorsed by Business Standard. Readers' discretion is advised.