Firstsource tanks 16% in 2 days after Q1 show; brokerages mixed on outlook

Post the company's Q1FY27 results, brokerages Nomura and Emkay maintained a positive view on the company's growth outlook.

Firstsource Solutions Ltd.’s share price fell over 16 per cent in two trading sessions after the company reported its April-June quarter (Q1FY27) results. The stock fell over 13 per cent on Thursday as the company reported results during market hours and continued to fall on Friday, declining over 3 per cent. 

 

As of 09:20 AM, the company’s share price was trading 2.02 per cent lower at ₹286.60 apiece, meanwhile, Nifty 50 was trading 0.08 per cent lower at 24,614.30.

 

Firstsource Solutions reported a 2 per cent decline in net profit at ₹165.92 crore for the quarter ended June 2026, compared with ₹169.33 crore in the previous quarter ended June 2025.

 

 

The company’s revenue increased 23.9 per cent year-on-year to ₹2,751.75 crore in the June 2026 quarter, from ₹2,220.93 crore in the corresponding quarter last year.

 

Nomura noted that Firstsource (FSOL) posted revenue growth of 2.2 per cent Q-o-Q (11 per cent Y-o-Y) in constant currency (cc) terms, in line with ITS expectation. Growth was driven by BFS and Telecom and Media among verticals, and Europe among geographies. 

 

The brokerage added that FSOL retained its 10-13 per cent Y-o-Y revenue growth guidance for FY27E, in constant currency (cc) terms, despite the termination of a contract in the Healthcare vertical due to change in leadership at the client’s end.

 

Nomura has revised its FY27-FY28 earnings per share estimates for Firstsource Solutions by 2–5 per cent after factoring in the company’s Q1 FY27 results. The brokerage has maintained its ‘Buy’ rating on the stock and raised the target price to ₹310 from ₹300, based on an unchanged valuation multiple of 18 times FY28 estimated EPS. 

 

Brokerage firm Emaky noted that FSOL posted largely in-line operating Q1 and the company signed 4 large deals and added 12 new logos in Q1 (including 3 strategic logos). 

 

Moreover, management retained its FY27 CC revenue growth guidance of 10-13 per cent “We revise up our target price 8 per cent to ₹270 from ₹250, based on 16 times Jun-28E earnings per share; however, we downgrade the stock to Reduce from Add, given the limited near-term upside following the 18 per cent and 21 per cent return in the last one and three month respectively”.

 

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