Firstsource Solutions Q4 FY25: Revenue up 29.8%

What Firstsource reported for Q4 FY25

Firstsource Solutions Limited reported a sharp year-on-year rise in its consolidated revenue for Q4 FY25, alongside a higher profit base. Revenue from operations stood at ₹2,167.77 crore in Q4 FY25, compared with ₹1,669.29 crore in Q4 FY24, a 29.8% YoY increase. Net profit for the quarter came in at ₹160.69 crore, up from ₹133.50 crore a year earlier. Profit before tax (PBT) rose to ₹201.71 crore from ₹159.29 crore in Q4 FY24. The company’s cost base also expanded, with total expenses rising to ₹1,961.86 crore from ₹1,513.98 crore.

Revenue and income mix: operations lead the quarter

The company reported total income of ₹2,163.58 crore in Q4 FY25, compared with ₹1,673.27 crore in Q4 FY24. Other operating income was reported at -₹6.31 crore in Q4 FY25, versus ₹1.17 crore in Q4 FY24. Other income was ₹2.12 crore in Q4 FY25, compared with ₹2.81 crore in Q4 FY24. The income profile in the quarter remained largely driven by revenue from operations. The reported numbers indicate a strong quarter on the top line, even as non-operating line items were relatively small in magnitude.

Costs and margins: employee expenses remain the largest line item

Total expenses for Q4 FY25 were ₹1,961.86 crore, up from ₹1,513.98 crore in the year-ago quarter. Employee benefit expense rose to ₹1,351.50 crore from ₹1,055.79 crore, and the company linked the increase to workforce expansion and strategic investments. Depreciation, impairment and amortization expense was ₹90.60 crore, compared with ₹67.33 crore in Q4 FY24. Other expenses were ₹477.14 crore versus ₹364.34 crore a year earlier. Despite higher costs, profit before tax increased on the back of higher revenue.

Profit, tax, and EPS: bottom-line grows with scale

Profit before tax for Q4 FY25 stood at ₹201.71 crore. Tax outgo included current tax of ₹28.33 crore and deferred tax of ₹12.69 crore for the quarter. Profit for the quarter was ₹160.69 crore in Q4 FY25, compared with ₹133.50 crore in Q4 FY24. The company also stated that EPS improved, reflecting profitability growth, without disclosing a specific EPS figure in the headline summary section.

Full-year FY25: revenue and profit rise versus FY24

For FY25, revenue from operations was ₹7,972.10 crore, up from ₹6,332.53 crore in FY24. Total income for FY25 was ₹7,979.45 crore, compared with ₹6,373.09 crore in FY24. Total expenses rose to ₹7,247.61 crore from ₹5,743.41 crore. Profit for FY25 was ₹594.45 crore, up from ₹514.73 crore in FY24. The company also disclosed consolidated revenue for FY25 at ₹7,980.30 crore (₹79,803 million), and consolidated profit after tax at ₹594.50 crore (₹5,945 million), aligned with the full-year scale implied by the consolidated table.

Segment drivers highlighted: healthcare, BFSI, and BPM

Firstsource said it continues to benefit from a diversified service portfolio. Customer Management Services (CMS) contributed significantly to overall revenue, supported by demand across healthcare and banking. The company also pointed to double-digit growth in its healthcare business, citing client additions and digital transformation initiatives. BPM growth was described as steady, with expansion in the US and UK markets. Across the narrative, healthcare and BFSI were identified as the strongest pillars of the company’s revenue streams.

Key financial snapshot (consolidated)

Stock reaction and what the market focused on

The article noted that following the Q4 FY25 results announcement, the stock movement was modest, with earnings growth seen as largely factored in by investors. Separately, the data also shows a price print of ₹221.5 with a 1.30% move and another update showing ₹219.5 with -1.61%, both tagged as “Updated” in the provided text. In addition, the preview section later in the material cites a CMP of ₹320 and analyst targets ranging from ₹385 to ₹400, framed around Q4 FY26 expectations rather than Q4 FY25 performance. These differing price references appear across different timestamps in the provided text, so they should be read as context-specific snapshots rather than a single continuous quote.

FY26 context and Q4 FY26 preview: what is already on the table

Beyond FY25 reporting, the material includes an outlook section where FY26 constant currency revenue growth guidance was raised to 14.5%-15.5%, including 1.5% from acquisitions, and an FY26 EBIT margin guidance of 11.5%-12%. It also mentions a long-term margin target of 14%-15% over the next 3-4 years, and a deal pipeline “above $1 billion.” The company completed acquisitions of Past Due Credit and TeleMedik, strengthening collections and healthcare capabilities, as stated in the text. For Q3 FY26, the executive summary cited revenue of ₹2,443.10 crore (₹24,431 million) with EBIT of ₹291.50 crore (11.9% margin) and adjusted PAT of ₹202.20 crore.

Analyst estimates for Q4 FY26: revenue band and PAT range

The preview section states that Firstsource Solutions is preparing to announce Q4 FY26 results for the period ended March 31, 2026, with the board scheduled to meet in May 2026 (expected) to approve audited statements and consider a final dividend recommendation. Analyst estimates for Q4 FY26 revenue were cited in the range of ₹2,300-2,500 crore, with PAT expectations of ₹200-228 crore and EBIT margin projections of 13%-14%. Kotak Institutional Equities expected 3% constant currency sequential organic growth, led by seasonality in BFSI and healthcare, partly offset by weakness in Retail and Utilities. Nomura’s expectations included 3.3% QoQ and 13.2% YoY growth in dollar revenue, and a Q4 FY26 net profit estimate of ₹212.20 crore, as stated.

Conclusion

Firstsource’s Q4 FY25 numbers show a strong YoY expansion in revenue from operations to ₹2,167.77 crore and a rise in quarterly PAT to ₹160.69 crore, alongside a higher expense base. For FY25, revenue from operations reached ₹7,972.10 crore and profit rose to ₹594.45 crore. The accompanying FY26-related commentary in the provided material places attention on margin delivery, deal conversion, and the company’s guidance framework. The next key milestone cited is the expected May 2026 board meeting for Q4 FY26 approval and a potential final dividend recommendation.