Stock Performance and Recent Price Movements
On 16 Feb 2026, Firstsource Solutions Ltd’s share price touched an intraday low of Rs.247.5, representing a 2.69% decline on the day and a 2.95% drop compared to the previous close. This marks the lowest price level for the stock in the past 52 weeks, down sharply from its high of Rs.403.8. The stock has experienced a consecutive five-day decline, resulting in a cumulative loss of 15.66% over this period.
The stock’s underperformance is further highlighted by its relative weakness against the Commercial Services & Supplies sector, where it lagged by 1.18% on the day. Additionally, Firstsource Solutions Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish momentum.
Market Context and Sector Comparison
While Firstsource Solutions Ltd has been under pressure, the broader market has shown resilience. The Sensex, after a negative opening, recovered to close marginally higher at 82,633.41, just 0.01% up on the day. The index remains 4.27% below its 52-week high of 86,159.02, with mega-cap stocks leading the gains. Despite this, the Sensex is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed technical signals.
Over the past year, Firstsource Solutions Ltd’s stock has declined by 30.01%, a stark contrast to the Sensex’s positive return of 8.82% and the BSE500’s 12.44% gain. This divergence underscores the stock’s relative weakness within the market and its sector.
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Financial Metrics and Valuation Insights
Despite the recent price weakness, Firstsource Solutions Ltd maintains several positive financial attributes. The company has demonstrated a strong ability to service its debt, with a Debt to EBITDA ratio of 1.50 times, indicating manageable leverage levels. Its return on capital employed (ROCE) for the half-year stands at 14.81%, with a quarterly ROCE of 15.4%, reflecting efficient capital utilisation.
Quarterly net sales reached a high of Rs.2,443.08 crore, while operating profit to interest coverage ratio peaked at 9.31 times, underscoring robust earnings relative to interest expenses. The company’s enterprise value to capital employed ratio is 3.1, suggesting an attractive valuation compared to peers’ historical averages.
Profitability has improved over the past year, with profits rising by 26.3% despite the stock’s negative price performance. The PEG ratio stands at 1, indicating that the stock’s price decline has outpaced earnings growth.
Market Capitalisation and Sector Positioning
Firstsource Solutions Ltd commands a market capitalisation of Rs.17,983 crore, making it the largest company within the Commercial Services & Supplies sector. It accounts for 38.44% of the sector’s total market cap and contributes 43.88% of the industry’s annual sales, which total Rs.9,134.41 crore. This dominant position highlights the company’s significant role within its industry.
Institutional investors hold a substantial 34.39% stake in the company, with their holdings increasing by 0.51% over the previous quarter. This level of institutional ownership reflects confidence in the company’s fundamentals despite recent price volatility.
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Mojo Score and Rating Update
MarketsMOJO assigns Firstsource Solutions Ltd a Mojo Score of 50.0, reflecting a Hold rating. This represents a downgrade from a previous Buy rating as of 29 Dec 2025. The market cap grade is 3, indicating a mid-tier valuation relative to the broader market. The Hold rating aligns with the company’s solid fundamentals balanced against recent price underperformance and technical weakness.
The downgrade reflects a cautious stance given the stock’s recent price action and relative underperformance, despite the company’s positive earnings trajectory and strong debt metrics.
Summary of Key Concerns
The stock’s fall to a 52-week low is primarily driven by sustained selling pressure over the past week, with a 15.66% decline over five trading sessions. Trading below all major moving averages signals a challenging technical environment. The stock’s underperformance relative to the Sensex and sector peers over the past year further highlights the pressure on its valuation.
While the broader market has shown resilience, Firstsource Solutions Ltd’s share price has not participated in the gains, reflecting sector-specific headwinds and investor caution. The negative price momentum contrasts with the company’s improving profitability and strong balance sheet metrics.
Conclusion
Firstsource Solutions Ltd’s decline to Rs.247.5 marks a notable low point in its recent trading history. The stock’s performance over the past year and recent weeks indicates a period of adjustment amid mixed market signals. The company’s financial strength and sector leadership remain intact, but the share price reflects current market sentiment and technical pressures.
Investors and market participants will continue to monitor the stock’s price action in relation to its fundamental metrics and broader market trends.
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