01 — At a Glance
The Call-Centre That Buys Debt Collectors & Still Grows 16%
- 52-Week High / Low₹404 / ₹201
- Q3 FY26 Revenue₹2,443 Cr
- Q3 FY26 PAT₹195 Cr
- TTM EPS₹8.91
- Annualised EPS (Q3 × 4)₹11.48
- Book Value / Share₹61.8
- Price to Book3.62x
- Debt / Equity0.54x
- Interim Dividend₹5.50
- Headcount36,689
Flash Summary: Firstsource just posted Q3 FY26 revenue of ₹2,443 crore (+16.2% YoY) and PAT of ₹195 crore (+27% YoY). That’s 7 straight quarters of double-digit growth and 5 straight quarters of margin expansion. They also bought a UK debt collector for £22 million, added TeleMedik in Puerto Rico, declared ₹5.50 interim dividend, and raised FY26 guidance to 14.5–15.5% CC growth. Stock still down 29% in one year. Markets, bhai, markets.
02 — Introduction
The BPO That Refuses to Die
Picture this: your friendly neighbourhood call-centre guy who used to sell credit cards at 2 a.m. is now acquiring debt-collection firms, launching AI platforms, and raising guidance while the rest of the world screams “AI will replace BPOs”. Welcome to Firstsource Solutions — part of the RP-Sanjiv Goenka Group — quietly turning “Digital First, Digital Now” into actual money.
Q3 FY26 numbers are ridiculous: ₹2,443 crore revenue (up 16.2% YoY), operating profit ₹403 crore, adjusted PAT ₹195 crore (up 27% YoY). They added 9 new logos including 5 strategic ones, signed 5 large deals (ACV > $5 mn), and the pipeline is still over $1 billion. Meanwhile attrition dropped to 27.4% (down 10 pp in 8 quarters) and they’re shifting work to South Africa faster than you can say “cost optimisation”.
Then they casually bought Pastdue Credit Solutions (UK debt collector) for £22 million and TeleMedik (Puerto Rico) for up to $3 million. Interim dividend ₹5.50. CRISIL reaffirmed A+/A1+. And management raised FY26 guidance. In a sector everyone wrote off three years ago. The roast writes itself.
Concall Note (Feb 2026): “Fifth straight quarter of margin expansion… pipeline stayed above US$1 billion… 13 large deals in 9M FY26 vs 14 in full FY25.” Management dropped these lines like it was nothing. The market is still pricing in the old BPO death narrative.
03 — Business Model: WTF Do They Even Do?
They Answer Phones, Chase Debts & Now Buy Debt Collectors
Firstsource is a classic BPM (Business Process Management) player with a “Digital First, Digital Now” mantra. They run customer service, claims processing, revenue cycle management, collections, and tech-enabled workflows for Healthcare (36%), BFSI (35%), CMT (22%) and Diverse Industries (7%). 68% revenue from North America, 32% RoW. Onshore 64%, offshore/nearshore 36% (and shifting faster to South Africa).
200+ clients, 19 Fortune 500, 3 FTSE 100. Top-5 clients contribute 33%, average tenure 20+ years. They have 36,689 employees across 40 centres in US, UK, India, Philippines, Mexico, Australia. Recent moves: acquired Ascensos (retail/e-comm), Quintessence (RCM), Pastdue Credit (UK debt collection), TeleMedik (Puerto Rico payer/provider). Launched “UnBPO” outcome-based model — 50%+ of business now non-linear.
In short: they take your boring back-office headaches, add AI, offshore smartly, and charge you while you focus on your core. Classic desi hustle dressed in global delivery centres.
Healthcare36%of revenue
BFSI35%of revenue
CMT22%of revenue
North America68%geography
Fun fact: they just bought a debt collector in the UK. The same guys who call you at dinner time for credit-card dues are now part of the family. Synergies, baby.
💬 At 16% revenue growth while buying debt firms, do you still think BPOs are dying? Or is Firstsource the exception that proves AI needs humans too? Comment below!
04 — Financials Overview
Q3 FY26: The Numbers That Refuse to Slow Down
Result type: Quarterly Results | Q3 FY26 EPS: ₹2.87 | Annualised EPS: ₹11.48
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 2,443 | 2,102 | 2,312 | +16.2% | +5.7% |
| Operating Profit | 403 | 318 | 376 | +26.7% | +7.2% |
| OPM % | 16% | 15% | 16% | +100 bps | flat |
| PAT (adjusted) | 195 | 154 | 180 | +27.0% | +8.3% |
| EPS (₹) | 2.87 | 2.27 | 2.54 | +26.4% | +13.0% |
P/E Check: TTM EPS ₹8.91. CMP ₹224. P/E 25.1x (screener shows 22.5x — minor rounding). Industry median 22.1x. Firstsource trades at a slight premium because it’s growing 16%+ with margin expansion while peers are still explaining AI to their grandmothers. The one-time ₹914 mn labour-code charge hit reported numbers; adjusted growth is clean.
💬 16% revenue growth + margin expansion + acquisitions in a “dying” sector — why is the stock still down 29% in a year? Merger fears? Or just old BPO trauma? Drop your theory!
05 — Valuation: Fair Value Range
What Is This BPM Beast Actually Worth?
Join 10,000+ investors who read this every week.
