Firstsource soars 11% after raising revenue guidance, sees robust deal pipeline

Firstsource has calibrated the higher end of its EBIT margin guidance to 11.5% as against 12% projected previously for FY25.

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26 Aug, 2025 12:21

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Shares of Firstsource Solutions were sharply higher by 11% after the company significantly raised its revenue growth guidance for FY25 to 19.5-20.5% in constant currency terms, from an earlier forecast of 11.5-13.5%. This includes about 5% contribution from Ascensos over seven months in FY25, said Firstsource.

Without Ascensos too, Firstsource's revenue growth guidance is seen higher than its previous guidance. The firm had in September acquired UK-based Ascensos for £42 million, including upfront payment and earnouts.

The RP-Sanjiv Goenka Group company however calibrated the higher end of its EBIT margin guidance to 11.5% as against 12% projected previously for FY25. "For operating margins, we expect our normalized FY25 EBIT margin, excluding one-time charges related to the acquisitions, to be in the 11-11.5% range."

Consolidated revenue from operations came in at Rs 1,932.61 crore, higher by 7.5% QoQ, and net profit at Rs 138.21 crore, up 2.2% QoQ. Firstsource clocked an EBITDA of Rs 287 crore, higher by 6.4% QoQ, but the EBITD Margin contracted to 10.8% compared to previous quarter.

The acquisition of Ascensos - a UK-headquartered outsourcing partner in retail and e-commerce - strengthened company's nearshore capabilities, said Firstsource.

The management in a conversation with CNBC-TV18 said a lot needed to be done on the margin front going forward.

Also adding to the market sentiment was the deal pipeline, with the management confirming three large deals in Q2FY25 and likelihood of three or more large deal wins expected in Q3FY25 as well.

Sanjiv Goenka, Chairman - RPSG Group and Firstsource Solutions said the strong show in September quarter is backed by a strong strategy, rooted in domain expertise, and investment in cutting-edge technology solutions. "This consistent growth, driven by strategic deal wins, and sound growth investments reflects our commitment to delivering excellence for clients and shareholders, alike,” Goenka said.

On a YTD basis, shares of Firstsource Solutions have doubled so far this year, and are up 137% in last one year.