Firstsource Share Price Surges on Q4 Expectations

Firstsource Solutions Ltd (FSL) experienced a significant surge in its share price, climbing over 15% on April 16, 2026. The rally on the National Stock Exchange (NSE) to ₹254.68 coincided with trading volumes ten times higher than the two-week average, aligning with a broader uptrend in IT shares.

Despite a 25% decline over the past year, FSL shares have rebounded, gaining 16% in the last month. ICICI Securities maintains a ‘Hold’ rating with a target price of ₹330, citing macro caution but noting the strengthening medium-term outlook due to strategies like UnBPO and healthcare expansion in Puerto Rico.

In Q3FY26, FSL reported revenues of $274 million, a 3.4% quarter-on-quarter increase, and a net profit of ₹220.5 crore, up 24% Q-o-Q. The company secured five large deals and nine new logos during the quarter, with an exit pipeline exceeding $1 billion.

Kotak Institutional Equities anticipates a 3% sequential constant currency growth in organic revenue for Q4FY26, driven by BFSI and healthcare seasonality, including the ramp-up of large deals. They also project a 30bps Q-o-Q EBIT margin improvement due to rupee depreciation and operating efficiencies. Kotak forecasts FSL to provide a revenue growth guidance of 8-10% CC Y-o-Y for FY27 and an EBIT margin guide in the 11.75-12.25% range.

Nomura holds a ‘Buy’ rating with a target price of ₹330, forecasting a 3.3% Q-o-Q and 13.2% Y-o-Y growth in dollar revenue for Q4FY26. The firm also anticipates a 10bps Q-o-Q and 80bps Y-o-Y expansion in EBIT margin to 12% and expects a substantial 76.4% Q-o-Q and 32.1% Y-o-Y surge in Q4FY26 net profit to ₹212.2 crore. Investors are closely monitoring demand commentary, AI impact, geopolitical events, deal wins, and progress toward medium-term goals.