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Firstsource Solutions
FSL · Nifty 50
₹243.85
Price 2026-06-17
At a Glance
Fundamental
100/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Firstsource Solutions scores 100/100 on fundamentals (strong). Firstsource Solutions: BROAD EXPANSION regime.
Fundamental Score: 100/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 14.9% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 14.95% is moderate efficiency-driven and stable. Net margin of 6.9% × asset turnover of 1.02x × leverage of 2.1x.
What This Means
Net margin of 6.9% means the company keeps ₹6.9 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 1.02x means the company efficiently uses its assets to generate revenue. Leverage of 2.1x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
41.1%
Operating
10.7%
Net
6.9%
Gross margin 41.1% → operating margin 10.7% → net margin 6.9%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 1.9x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 5.6x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.1x is moderate.
Free Cash Flow
STRONGFCF margin at 10.8% — strong cash generation. Business is self-funding.
Peer Comparison
Key Watchpoints
Breaks above ₹256 (+5%)
Trend reversal confirmation
Breaks below ₹232 (-5%)
Further downside risk
It sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Extremely acquisition-heavy. Any impairment could wipe out significant net worth.
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Special charges of ₹98K Cr. May indicate restructuring, impairment, or one-time costs.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Collection cycle changing. Collection improving — positive for cash flow.
Strong insider alignment. Promoters have significant skin in the game.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes