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FSL: AI Partnerships Will Drive Automated Outcomes Across Regulated Workflows

Digital Transformation And AI Integration Will Expand Market Reach

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FSL
AnalystConsensusTarget
Not Invested
Published 18 Feb 2025

Update shared on 19 Dec 2025

Fair value Increased 2.11%
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1Y
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1.7%

Narrative Update on Firstsource Solutions

Analysts have nudged their price target on Firstsource Solutions higher to roughly ₹398 from about ₹390. This reflects modestly stronger fair value assumptions despite slightly softer long term growth and margin expectations.

What's in the News

  • Made a strategic investment in AppliedAI, an AI workflow automation platform, to advance its UnBPO strategy and deliver more automated, compliant, outcome-driven operations for regulated enterprises (Key Developments).
  • Integrated AppliedAI's agentic automation and human in the loop capabilities to help clients automate mission critical, compliance heavy workflows with greater speed, accuracy, transparency, and resilience across sectors such as healthcare, financial services, insurance, and government (Key Developments).
  • Signed a strategic memorandum of understanding (MoU) with Monash University to co develop next generation AI solutions, translate frontier research into scalable enterprise applications, and create structured internship and placement pathways for students in Australia (Key Developments).
  • Scheduled a Board meeting on November 4, 2025 to approve audited Q2 and half year FY2026 results, review the strategic minority investment in AppliedAI, and consider the appointment of Jagriti Bhattacharya as Executive Vice President and General Counsel (Key Developments).

Valuation Changes

  • The Fair Value Estimate has risen slightly, moving from about ₹390 to roughly ₹398 per share, reflecting a modestly higher intrinsic value.
  • The Discount Rate has increased marginally from approximately 13.30 percent to about 13.33 percent, implying a slightly higher implied risk premium.
  • Revenue Growth has fallen modestly, with long-term assumptions easing from around 13.93 percent to about 12.96 percent annually.
  • The Net Profit Margin has edged down slightly, from roughly 9.43 percent to about 9.19 percent, indicating a small reduction in expected profitability.
  • The future P/E has risen slightly, moving from about 33.9x to roughly 34.7x, suggesting a modestly higher valuation multiple on forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.