Stock to buy after Q2 Results 2026: Anand Rathi sees 25% upside in this IT stock in 12 months | Target price, rationale
Stocks to buy after Q2 Results 2026: Shares of Firstsource Solutions Ltd (FSL) have been on an uptrend in October 2026, rising from ₹248 to ₹303 apiece on the NSE, delivering over 20% returns to its shareholders. However, Anand Rathi believes the IT stock has further upside potential following the announcement of Q2 2026 results. The brokerage has given a ‘buy’ tag to the IY stock, predicting the FSL share price target of ₹384 in 12 months. Firstsource Solutions' share price today is around ₹305 per share, suggesting Anand Rathi expects FSL shares to rally 25% over the next year.
Decoding FSL's Q2 Results 2026, Anand Rathi report said, "Firstsource Solutions (FSL) reported Q2FY27 revenue of $296mn (+2.0% q/q cc), marking its 12th consecutive quarter of sequential growth. Operating EBIT margin moderated 60bps q/q to 12.6%, while reported EBIT margin expanded 10bps q/q to 12.5%, despite annual wage hikes and upfront onboarding of ~3,000 employees. Growth remained BFS-led (+9% q/q cc), while Healthcare declined 2%. Cognizant echoed this divergence, citing double-digit BFSI growth on sustained AI-led demand, while regulatory and funding uncertainties continue to constrain Healthcare spending, with recovery expected as Medicaid and Medicare funding stabilises in CY27.
The brokerage said that management raised the lower end of FY27 revenue guidance to 10.5-13% cc (vs. 10-13%), lifting the midpoint to 11.75% (vs. 11.5%) and implying ~3.4% CQGR over Q3–Q4. This translates into ~9.75% organic growth (vs. ~9.5% earlier), supported by improving deal visibility and upcoming program ramps.
FSL secured four large deals (>$5mn ACV) for the 7th consecutive quarter, alongside 17 new logos (6 strategic). $5mn+ clients rose to 51 (+6 q/q) and $10mn+ clients to 23 (+3 q/q), reflecting deeper wallet share. Top-10 client concentration declined ~10pp over eight quarters, improving diversification. However, phased deal ramps could delay revenue conversion.
FSL is scaling repeatable AI-led workflows through Kairos, with >50% of revenue already nonlinear. This strengthens differentiation & scalability, although AI-led renewal deflation requires incremental scope to sustain revenues. Productisation offers margin upside, but incremental AI monetisation remains unproven.
On the suggestion to the market investors regarding Firstsource Solutions shares, the Anand Rathi report said, "We have revised our FY27/28/29e Revenue and PAT estimates by +0.3/+0.3/+0.3%, and +1.7/+4.2/+3.7%, respectively with FY27-29e adj. EPS CAGR of 16.2% and arrive at a TP of ₹384, implying a ~25.5% upside from CMP. At CMP, the stock trades at FY28/29e P/E of 19.2x/16.6x."
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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