Stock to buy after Q2 Results 2026: Anand Rathi sees 25% upside in this IT stock in 12 months | Target price, rationale

Firstsource Solutions' share price today is around ₹305 per share, suggesting Anand Rathi expects FSL shares to rally 25% over the next year.Firstsource Solutions Q2 Results 2026Decoding 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.Strong deal wins during Q2FY27FSL 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.AI-Led productisation drives nonlinear growthFSL 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.FSL share price targetOn 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."Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.