eClerx Services Limited reported strong Q3 FY26 results, with operating revenue at $121.7 million, up 5.4% sequentially, or INR 10,703 million, up 6.5% sequentially. EBITDA reached INR 3,075 million with a margin of 27.9%, and PAT was INR 1,920 million. For 9MFY26, USD revenue was $346.5 million, a 18.4% YoY increase, while PAT was INR 5,168 million, up 33% YoY. Deal wins for Q3 totaled $45 million, with Analytics and Automation up 10%.
Financial Performance Highlights
eClerx Services Limited announced positive financial results for Q3 FY26:
- Operating Revenue (Q3): $121.7 million (up 5.4% sequentially).
- INR Revenue (Q3): INR 10,703 million (up 6.5% sequentially).
- EBITDA (Q3): INR 3,075 million (27.9% margin).
- PAT (Q3): INR 1,920 million (17.5% margin).
- USD Revenue (9MFY26): $346.5 million (up 18.4% YoY).
- INR Revenue (9MFY26): INR 30,097 million (up 22% YoY).
- PAT (9MFY26): INR 5,168 million (up 33% YoY).
- Deal Wins (Q3): $45 million.
Business Segment Performance
Key observations about different business segments:
- Analytics and Automation grew 10%.
- Growth in non-top 10 clients exceeded that of the top 10. Top 10 client concentration stands at 60%.
- Strong growth in F&O subsegment and emerging business.
- Hi-tech and M&D also experienced strong growth.
- Fashion and Luxury rebounded after a seasonal low in Q2.
- BFSI and CMT had modest growth.
Strategic Outlook
The company is seeing opportunities across core and new clients in Financial Services, including AI projects. Analysts suggest that Fashion and Luxury industry might have bottomed out with low single-digit growth expected for 2026. Hi-tech client spending is directed at transformation programs, with a focus on automation and client satisfaction. Agentic AI is important for self-healing services. Growth in M&D is driven by new wins and expansion across key focus clients. Emerging businesses grew strongly with expansion in F&O and order management.
Key Metrics and Operational Updates
- Constant currency operating revenue increased by 5.5% sequentially and 20% YoY.
- Total revenue (including other income of INR 313 million) was INR 11,703 million, up 6.4% sequentially and 22% YoY.
- EBITDA margin down 90 bps Q-o-Q but up 190 bps YoY.
- Top 10 client concentration decreased to 60%.
- DSO increased by 2 days to 78.
- Utilization increased by 1.4%.
- 400 new seats added in Chandigarh.
- Attrition levels similar to Q2.
Other Updates
The company completed a buyback process in January, extinguishing 625,000 shares. A 1:1 bonus issue has been approved by the Board, pending shareholder approval.
Source: BSE
