Strong growth, weak profit; healthcare deal termination clouds outlook

22.9% YoY growth confirmed; 11th straight quarter sequential growth

EBIT margin confirmed at 12.4%; 110bps expansion verified from prior quarter baseline

Adjusted PAT INR2.2B (+31.2% YoY) correct, but reported PAT INR1.7B down 2% YoY due to INR717M exceptional charges

Confirmed; deal still early-stage ramp, leadership change forced client to reverse decision on technology transformation

Four large deals (ACV >$5M) signed in Q1; 12 new logos added; strategic logos targeting >$5M run-rate

Major transformative deal wound down post-client leadership change; ₹271M net charge taken. Was strategic $50M+ run-rate target, still early-phase ramp. Isolated but signals execution/relationship risk.

Reaffirmed 10-13% cc growth and 12.25-12.75% EBIT guidance despite absorbing 1-1.5% drag from healthcare deal. Implies confidence in new deal ramp pace and pipeline.

EBIT margin 12.4%, 7th straight quarter up; +110bps YoY, +20bps QoQ. Tracking toward 14-15% long-term target; ahead of FY27 guidance lower end.

Five new geographic growth engines (Middle East, South Africa, Canada leadership) and three capability frontiers (US Retail/CPG, marketing services, security/resiliency) launched. Early-stage, creating pipeline.

1-1.5% Q1 revenue impact; ₹271M covers partner ecosystem obligations as single throat-to-choke. Recovery expected from client over coming quarters; client continues to grow >$5M annually with Firstsource. Isolated leadership-change event, not secular healthcare challenge.

Best Q1 in 4 quarters for deal wins; several ramping quickly. Strong offset expected. Guidance supported by pipeline health despite deal win absorption.

Isolated one-off. New leader, typical pause-and-restock decision. Healthcare deal wins 33% of Q1 and last 5Q average. Relationship intact, portfolio healthy.

Deployed across 'pretty much all clients' on mortgage side. 200+ scenario coverage. Differentiator in high-rate origination cost-control environment. Rolled out; in use, not new product.

Two different clients. First: healthcare BPaaS termination + partner recovery. Second: one-time healthcare claims processing dispute settlement. All revenue collected or recoverable. Only partner reimbursement timing uncertain (provided conservatively).

Lower end has clear line of sight; upper end supported by strong pipeline. One quarter doesn't signal systemic margin shift; acquisitions and ramp costs temporary. Company-level 7Q of margin expansion; 8Q trend 11% to 12.4%.

Strong domain expertise prerequisite; controls commensurate with risk essential. Occasional errors inevitable; isolation shows controls working. Client expansion confirms no systemic issue.

GBP 61.6M for 12M at 118-120 avg rate; USD 119M at ~93 avg rate. 25-30% option product (125-130 upside); overall ~123-124 GBP blended, ~94 USD. Managed long-term.

Already playing out. Full-stack operator (advise-implement-run-transform) new capability vs 3Y back. Marketing tech stack, pen-testing, security services new revenue streams. Q1 best deal wins in 5Q; some new $5M+ logos at outset.

New wins will take 3 months to ramp. Expect H2 strong; broadly in line with 10-13% guidance reinforce.

Reaffirmed despite 1-1.5% headwind from healthcare BPaaS wind-down. Q1 cc growth 12.3% (midpoint); large deals ramping to offset loss. Pipeline described as robust, healthy.

Q1 at 12.4% already ahead of lower end. 7th straight quarter of expansion. 50-75bps thesis from prior management continues holding. Path to 14-15% over 2-3 years.

Healthcare BPaaS engagement wound down post-client leadership change; still in early-phase ramp, not steady-state. ₹271M net charge for partner obligations. Signals execution fragility or weak client retention in complex programs.

Healthcare 11% YoY but -2% QoQ cc. Payer side hit by Medicare Advantage client program recalibrations post-CMS rate adjustments. Segment margin compressed mid-teen to low double-digit. Management frames as 'pacing effect, not demand shift,' but regulatory environment (HR.1, CMS rules) creating near-term friction.

Healthcare claims processing issue triggered ₹216M net regulatory indemnity charge. As industry shifts to outcome-based from FTE models, execution errors on performance metrics / SLAs may rise during transition. Management acknowledges 'occasional errors inevitable' but claims domain expertise and controls mitigate.

Q1 constant currency growth 12.3% YoY is midpoint of 10-13% guidance, not upper range. Large deals must ramp quickly to sustain 13% and offset 1-1.5% healthcare drag. If new deals ramp slower than 'quick order' claimed, growth settles at lower end.

GBP hedge 118-120 (avg 123-124 blended), USD ~93. If INR weakens beyond hedged rates, unhedged portion loses margin. Pound portfolio historically larger (50-75% cover year 1). Dollar only ~25% cover.