Stock Price Movement and Market Context
On 20 Feb 2026, Firstsource Solutions Ltd’s share price touched an intraday low of Rs.244.2, representing a 5.09% decline on the day and a 5.29% drop compared to the previous close. This decline extended a two-day losing streak, during which the stock has fallen by 5.98%. The stock’s current price is substantially below its 52-week high of Rs.403.8, indicating a depreciation of approximately 39.5% from that peak.
In comparison, the Sensex index demonstrated resilience on the same day, recovering sharply after a negative opening. The benchmark index closed at 82,841.93 points, up 0.42%, and remains just 4% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market rally, while Firstsource Solutions Ltd, a mid-cap stock in the Commercial Services & Supplies sector, underperformed its sector by 3.27% on the day.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical trend. This persistent weakness in price levels contrasts with the broader market’s relative strength and highlights sector-specific or company-specific pressures.
Performance Over the Past Year
Over the last 12 months, Firstsource Solutions Ltd has generated a negative return of 33.16%, significantly underperforming the Sensex, which posted a positive return of 9.38% during the same period. The stock’s underperformance is also stark when compared to the BSE500 index, which delivered 11.94% returns over the year.
This divergence between the stock and the broader market indices underscores challenges faced by the company’s shares relative to market sentiment and sectoral trends. Despite this, the company remains the largest entity in its sector with a market capitalisation of Rs.18,248 crores, constituting 38.92% of the Commercial Services & Supplies sector.
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Financial Metrics and Valuation
Despite the stock’s price decline, Firstsource Solutions Ltd exhibits several positive financial indicators. The company has reported positive results for four consecutive quarters, with quarterly net sales reaching a high of Rs.2,443.08 crores. Operating profit to interest coverage ratio stands at a robust 9.31 times, reflecting a strong capacity to meet interest obligations.
The company’s return on capital employed (ROCE) for the half-year period is 14.81%, with an overall ROCE of 15.4%, indicating efficient utilisation of capital. Additionally, the debt to EBITDA ratio remains low at 1.50 times, signalling manageable leverage levels and a strong ability to service debt.
Valuation metrics also suggest an attractive profile relative to peers. The enterprise value to capital employed ratio is 3.2, and the stock is trading at a discount compared to the average historical valuations of its sector counterparts. The company’s PEG ratio stands at 1, reflecting a balance between price, earnings growth, and valuation.
Institutional Holdings and Sector Position
Institutional investors hold a significant stake in Firstsource Solutions Ltd, accounting for 34.39% of the shareholding. This represents a modest increase of 0.51% over the previous quarter, indicating sustained institutional confidence in the company’s fundamentals despite recent price weakness.
With annual sales of Rs.9,134.41 crores, the company commands 43.63% of the Commercial Services & Supplies industry’s revenue, reinforcing its dominant position within the sector. The market cap grade assigned to the company is 3, reflecting its mid-cap status and relative market size within the sector.
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Recent Rating and Mojo Score
Firstsource Solutions Ltd’s Mojo Score currently stands at 50.0, with a Mojo Grade of Hold. This represents a downgrade from a previous Buy rating issued on 29 Dec 2025. The Hold rating reflects a cautious stance given the recent price weakness and relative underperformance, balanced against the company’s solid financial metrics and sector leadership.
The stock’s day change of -5.29% on 20 Feb 2026 further emphasises the current pressure on the share price, while the broader market’s positive momentum highlights the divergence in performance.
Summary of Key Price and Performance Indicators
To summarise, Firstsource Solutions Ltd’s stock has experienced a notable decline to Rs.244.2, its lowest level in the past 52 weeks. This decline has occurred despite the company’s strong operational results, manageable debt levels, and dominant sector position. The stock’s technical indicators remain weak, trading below all major moving averages, and it has underperformed both the Sensex and BSE500 indices over the past year.
While institutional investors maintain a significant stake, the stock’s recent price action reflects a period of adjustment within the Commercial Services & Supplies sector and the broader market environment.
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