Profit before tax (PBT) rose 27.48% YoY to Rs 213.23 crore in Q1 FY26.
Total expense jumped 23.72% year on year to Rs 2,011.25 crore during the quarter. Employee benefits expense was at Rs 1,320.70 crore (up 17.21% YoY), while other expenses stood at Rs 549.86 crore (up 39.41% YoY) during the period under review.
EBITDA stood at Rs 347.1 crore in Q1 FY26, registering growth of 28.6% as compared with Rs 269.9 crore in Q1 FY25. EBITDA margin improved to 15.7% in Q1 FY26 as against 15.1% in Q1 FY25.
In dollar terms, the revenue stood at $259 million, registering a growth of 20.7% YoY. On constant currency terms, revenue was at 1.6% QoQ and 19.2% YoY.
The company’s employee strength stood at 34,495 at the end of Q1 FY26. Offshore and nearshore hires accounted for 80% of gross additions. The attrition rate declined further to 28.9%, marking a 13 percentage point improvement over the past eight quarters.
Looking ahead, the company now expects revenue to grow between 13% and 15% in FY26, in constant currency terms—slightly raising the lower end of its earlier forecast of 12% to 15%. This estimate doesn’t factor in any potential boost from Pastdue Credit Solutions, as that deal is still awaiting regulatory approval. The company also continues to target an EBIT margin of 11.25% to 12% for the full year.
Sanjiv Goenka, chairman of RPSG Group and Firstsource Solutions, said, “We’ve begun FY26 on a positive note, building on the momentum of a breakthrough FY25. The consistent cadence of large, high-quality deal wins quarter after quarter underscores our ability to deliver impact at scale—powered by AI, deep domain expertise, and agile operations.
Our differentiated UnBPO™ approach, coupled with a focus on nonlinear, multi-tower engagements, continues to fuel sustainable growth, even in a volatile macro environment. With AI now embedded at the heart of our delivery through the Firstsource relAI™ suite and Agentic AI Studio, I am confident that our people, platforms, and partnerships will continue to power meaningful outcomes for our clients and stakeholders.”
Firstsource Solutions is a global provider of business process management (BPM) services and an RP-Sanjiv Goenka Group company.