Highlights
| Issue Size – 2,42,90,657 shares | Issue Open/Close – 14 Oct/ 16 Oct, 2026 |
| Price Band (Rs.) 275 – 289 | Issue Size (Rs.) – 7,020 mn |
| Face Value (Rs) 1 | Lot Size (shares) – 51 |
Fusion CX Limited (FCXL) incorporated in 2004, is a customer experience (CX) service provider delivering high-end, multilingual, and omnichannel engagement solutions across voice, email, chat, social media and message in a cost-effective manner with technology playing a central role, in addition to providing AI Data Infrastructure Services that include data collection, data annotation and labelling, and teleoperations services.
FCXL provides a comprehensive suite of services including customer acquisition, customer service, order fulfillment support, payment and collections services, customer retention, technical support and digital solutions, tailored for key verticals like telecom and utilities, healthcare and life sciences, BFSI, retail, and high-tech and travel (HTT).
FCXL operates through flexible commercial models – fixed-fee, transaction-based, and outcome-based, designed to meet the specific needs of enterprise clients across sectors.
FCXL differentiates itself from traditional cost-focused BPO through end-to-end customer engagement, personalization and value creation, which has enabled it to serve 208 clients, including 22 Fortune 1000 companies, across 13 countries through 40 delivery centres, providing 24×7 support in 28 languages across multiple time zones.
Out of the total proceeds of Rs. 7,020 mn, Rs. 2,757 mn would go towards repayment of certain outstanding borrowings availed by the company, Rs. 612 mn would go towards investment in its step-down subsidiaries for upgrading IT tools, while remaining Rs. 1,631 mn would go towards pursuing inorganic growth and for general corporate purposes. Additionally, Rs. 2,020 would go towards promoter selling shareholders of the company.
Key Highlights
- Total addressable market (TAM) of CX industry has increased from Rs. 31.68 trillion to Rs. 34.54 trillion at CAGR of 1.74 pct between CY20-25, and is further projected to reach Rs. 35.03 trillion by 2027 at a CAGR of 0.71 pct. Of these Outsourced CX is expected to increase from 33.2 pct share to 34.46 pct at 2.58 pct CAGR growth, compared to in-house share contracting over same period.
- FCXL is transitioning from a traditional CX service provider to a productised, SaaS-enabled model through its subsidiary Omind’s , developing in-house proprietary platforms across marketing AI, conversational AI, quality automation and workforce management. Additionally, they also integrates third-party AI solutions, including MindSpeech – which enables real-time accent harmonisation to improve clarity and automate multilingual customer interactions.
- FCXL has a strong track record of acquisition and continues to focus on it, as it enhances its capabilities in targeted industries across customer acquisition, onboarding, order fulfilment KYC and fraud prevention, and tech support. Its acquisition strategy aims to identify companies that align with these capabilities at the right price point, providing opportunities to expand its revenue streams.
- FCXL operates through a blended network of 3 types of delivery centres. (i) Onshore centres are in USA and Canada provide high-touch support for complex processes, meeting clients’ compliance, data security and regulatory requirements through native English and multilingual capabilities. (ii) Nearshore centres in LATAM countries offer North American time-zone proximity and faster responses, while centres in Morocco and Europe provide support in French, Spanish, German, Arabic and English. (iii) Offshore centres in India and the Philippines deliver cost-efficient, round-the-clock support, leveraging a strong talent pool and robust infrastructure in local as well as English language.
- FCXL’s key growth strategies include (i) To retain client, expand wallet share, deepen market presence and enter into new geographies to drive growth, (ii) accelerate growth through strategic R&D investments leveraging Generative AI enabled innovation, (iii) pursue strategic acquisitions, (iv) focus on high value corporate accounts and accelerating growth through up-selling and cross-selling, and (v) focus on operational efficiency and cost optimization
- The sales of the company have grown by 35.43 pct CAGR over FY24-26, EBITDA/Adjusted EBITDA has grown by 77.59 pct CAGR/70.46 pct CAGR and Profit/Adjusted Profit has grown 116.28 pct CAGR/86.99 pct CAGR over same year. In FY26 the company reported sales of Rs. 18,181 mn rose by 36.77 pct YoY. EBITDA/Adjusted EBITDA of the company rose by 66.79 pct/68.59 pct YoY. In FY26 the company posted profit of Rs. 1,698 mn, which increased by 128.53 pct YoY.
Key Risk
- FCXL’s operations involve handling sensitive customer data, exposing it to cybersecurity risks, including breaches, cyberattacks and viruses, which could disrupt operations and damage its reputation.
- FCXL is subject to data protection laws governing personal, sensitive and health information, any non-compliance could result in penalties, liabilities and reputational damage.
- FCXL’s performance depends on telecom, utilities, HTT and other sectors, making its business and financial performance vulnerable to adverse macroeconomic conditions affecting these industries.
Financial Performance
| Particulars (in Rs. mn) | FY24 | FY25 | FY26 | CAGR | YoY | Q1 FY27 |
| Sales | 9,913 | 13,293 | 18,181 | 35.43% | 36.77% | 4,892 |
| EBITDA | 1,046 | 1,978 | 3,299 | 77.59% | 66.79% | 950.86 |
| EBITDA Margin % | 10.55% | 14.88% | 18.14% | 19.39% | ||
| Adjusted EBITDA | 1,219 | 2,101 | 3,542 | 70.46% | 68.59% | 982.29 |
| Adjusted EBITDA Margin % | 12.30% | 15.81% | 19.48% | 20.03% | ||
| Profit | 363 | 743 | 1,698 | 116.28% | 128.53% | 557 |
| Profit Margin % | 3.66% | 5.59% | 9.34% | 11.36% | ||
| Adjusted PAT | 598 | 1,037 | 2,091 | 86.99% | 101.64% | 617 |
| Adjusted PAT Margin % | 6.03% | 7.81% | 11.50% | 12.59% | ||
| ROE % | 13.37% | 20.74% | 30.30% | 8.99% | ||
| ROCE % | 19.56% | 49.73% | 71.59% | 19.84% |
Source: – RHP.
Peer Comparison based on FY26 Financials.
| Particulars (in Rs. mn) | Fusion CX | Firstsource | HGS | Alldigi Tech | e-Clerx |
| Sales | 18,181 | 9,616.1 | 43,074 | 5,987 | 4,117.0 |
| EBITDA | 3,299 | 15,562 | 6,486 | 1,620 | 1,152.6 |
| EBITDA Margin % | 18.14% | 16.3% | 15.1% | 27.1% | 28.0% |
| Profit | 1,698 | 6,744 | 49 | 822 | 706.2 |
| Profit Margin % | 9.34% | 7.1% | 0.1% | 13.7% | 17.2% |
| ROE % | 30.30% | 15.4% | – | – | 29.0% |
| ROCE % | 71.59% | 17.7% | – | – | – |
Source: – RHP.
Valuation
Fusion CX Limited is a BPO and customer experience solutions provider that delivers customer experience across voice, email, chat, social media and messaging, cost-effectively and with technology at the core of the delivery model. Its work spans telecom and utilities, healthcare and life sciences, high tech, travel, BFSI and retail, each backed by deep domain specialization. At the upper end of the price band of Rs. 289, the issue is priced at an PE of 18.7x its FY27 post issue annualised profit. The issue appears to be fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
