Brokerage sets target price for Firstsource Solutions shares after strong quarter

Shares of Firstsource Solutions have risen from ₹248 to ₹303 on the NSE during October 2026. Brokerage firm Anand Rathi predicts the stock will reach ₹384 over the next 12 months. This projection suggests a 25 percent upside from the current market price of around ₹305.

Results And Growth

Firstsource Solutions reported a revenue of $296 million for the second quarter, marking its twelfth consecutive quarter of sequential growth. Operating EBIT margin moderated by 60 basis points to 12.6 percent, while the reported EBIT margin expanded by 10 basis points to 12.5 percent. These changes occurred despite annual wage hikes and the onboarding of about 3,000 employees. Growth was led by the banking, financial services and insurance sector, which grew 9 percent quarter-on-quarter, while healthcare declined 2 percent. Management raised the lower end of fiscal year 2027 revenue guidance to between 10.5 and 13 percent in constant currency terms.

Deals And Strategy

The company secured four large deals with an annual contract value above $5 million for the seventh consecutive quarter and added 17 new clients. Clients contributing over $5 million rose to 51, while those contributing over $10 million increased to 23. The firm is also scaling artificial intelligence workflows through a platform called Kairos, with over 50 percent of its revenue already nonlinear.

Context

Brokerage firms frequently review company earnings reports to issue stock recommendations and target prices for investors. These targets depend on factors like revenue guidance, client additions, and broader industry trends.