Recent Price Movement and Market Context
On 24 Feb 2026, Firstsource Solutions Ltd touched an intraday low of Rs.232.6, representing a 3.12% decline on the day and underperforming its sector by 0.9%. The stock’s day change was recorded at -2.33%, continuing a sequence of four consecutive sessions of losses. This downward momentum has pushed the share price well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.
In contrast, the broader market benchmark, the Sensex, also faced pressure, closing 479.31 points lower at 82,573.23, down 0.87% on the day. Despite this decline, the Sensex remains within 4.34% of its 52-week high of 86,159.02. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals for the broader market.
Performance Comparison and Sector Positioning
Over the past year, Firstsource Solutions Ltd has underperformed significantly, delivering a negative return of 34.92%, while the Sensex has appreciated by 10.90%. This stark contrast highlights the stock’s relative weakness within the Commercial Services & Supplies sector. The company’s 52-week high was Rs.403.8, underscoring the extent of the recent decline.
Firstsource Solutions Ltd holds a dominant position in its sector, with a market capitalisation of Rs.17,029 crores, constituting 37.99% of the entire sector’s market cap. Its annual sales of Rs.9,134.41 crores represent 43.63% of the industry’s total, making it the largest company in the Commercial Services & Supplies space.
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Financial Metrics and Credit Profile
Despite the recent price decline, Firstsource Solutions Ltd maintains a solid financial foundation. The company’s debt to EBITDA ratio stands at a low 1.50 times, reflecting a strong capacity to service its debt obligations. This metric supports the company’s current Mojo Grade of Hold, which was downgraded from Buy on 29 Dec 2025.
Operationally, the company has reported positive results for four consecutive quarters. Key financial highlights include a highest quarterly net sales figure of Rs.2,443.08 crores and an operating profit to interest coverage ratio of 9.31 times, indicating robust earnings relative to interest expenses. The half-yearly return on capital employed (ROCE) peaked at 14.81%, with an overall ROCE of 15.4%, signalling efficient capital utilisation.
Valuation and Institutional Interest
Firstsource Solutions Ltd is currently trading at an attractive valuation, with an enterprise value to capital employed ratio of 3. This valuation is discounted relative to the average historical valuations of its peers within the sector. The company’s price-to-earnings-to-growth (PEG) ratio is 0.9, suggesting that the stock’s price is reasonable in relation to its earnings growth of 26.3% over the past year.
Institutional investors hold a significant stake of 34.39% in the company, having increased their holdings by 0.51% over the previous quarter. This level of institutional ownership reflects confidence in the company’s fundamentals from investors with extensive analytical resources.
Market and Sector Underperformance
While the BSE500 index has generated returns of 13.63% over the last year, Firstsource Solutions Ltd has notably underperformed, delivering a negative return of 34.92%. This divergence emphasises the stock’s relative weakness within the broader market context and the Commercial Services & Supplies sector.
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Technical Indicators and Trading Trends
The stock’s current trading below all major moving averages indicates a sustained bearish trend. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price level of Rs.232.6, suggesting that short-term and long-term momentum remain subdued. This technical positioning aligns with the recent four-day consecutive decline and the 10.04% loss over this period.
Such technical signals often reflect investor caution and a lack of upward price catalysts in the near term. The stock’s underperformance relative to its sector and the broader market further underscores the challenges faced in regaining positive momentum.
Summary of Key Metrics
To summarise, Firstsource Solutions Ltd’s key financial and market metrics as of 24 Feb 2026 are:
- New 52-week low price: Rs.232.6
- Market capitalisation: Rs.17,029 crores
- Debt to EBITDA ratio: 1.50 times
- ROCE (half-yearly): 14.81%
- Quarterly net sales peak: Rs.2,443.08 crores
- Operating profit to interest coverage: 9.31 times
- PEG ratio: 0.9
- Institutional holdings: 34.39%, increased by 0.51% QoQ
- One-year stock return: -34.92%
- Sensex one-year return: 10.90%
These figures illustrate a company with solid financial fundamentals and sector leadership, yet currently facing market headwinds reflected in its share price performance.
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