eClerx Services Limited announced a strong Q2 FY26, with operating revenue up 5.7% sequentially to $115.5 million. EBITDA margin reached 28.8%, and PAT increased by 29% sequentially. H1 FY26 saw revenue growth of 17% Y-o-Y, with deal wins in Q2 totaling $46 million. The company maintains a positive outlook, focusing on technology integration and client-centric solutions, with continued growth expected across most industry verticals.
Financial Highlights
eClerx Services Limited reported impressive results for Q2 FY26, demonstrating significant growth and margin expansion:
- Operating revenue for Q2 reached $115.5 million, a 5.7% sequential increase. In INR terms, revenue was INR 10,049 million, up 7.5% sequentially.
- EBITDA for Q2 stood at INR 2,983 million, with a margin of 28.8%.
- PAT for the quarter was INR 1,832 million, yielding a margin of 17.7%.
The company’s performance in H1 FY26 was also strong, with operating revenue reaching $225 million, a 17% Y-o-Y growth. PAT for H1 was INR 3,249 million, up 29% against the previous year.
Deal Wins and Growth Drivers
Deal wins for Q2 amounted to $46 million. Analytics and automation grew by 6% over the previous quarter. Growth was exceptionally strong in emerging businesses, CMT and HiTech, while BFSI experienced modest growth.
Industry Vertical Outlook
eClerx provided commentary on the outlook for key industry verticals:
- BFSI: Broad opportunities across core, intermediate, and small new clients.
- Fashion & Luxury: Expected to stabilize after recent pressures.
- HiTech: Positive outlook with client spend concentrated on transformation and customer experience programs.
- Emerging Businesses: Growth driven by wins in finance and accounting and order management.
Strategic Focus and Recognition
The company is seeing an increase in deal sizes and improved win rates in its digital services and market intelligence products. eClerx was recognized as a leader in Everest Group’s Capital Market Operation Services PEAK Matrix and as a major contender in the Marketing Services PEAK Matrix. It was also recognized as a great place to work.
Margin Outlook
While Q3 margins are not expected to be as strong as Q2 due to INR appreciation, the overall margin outlook remains positive, with margins expected to remain in the 24% to 28% range for the year.
Capital Allocation
The Board has approved a buyback of INR 300 crores, subject to shareholders’ approval. Promoters will not participate in the buyback.
Conference Call Highlights
During the conference call, management addressed questions regarding growth, margins, and strategy. They emphasized their focus on technology, client relationships, and operational efficiency. The company expressed confidence in its ability to deliver strong results and create long-term value for shareholders.
Source: BSE
