eClerx Services Limited reported a strong performance in Q1 FY27, with operating revenue increasing by 15.2% year-on-year to USD 125.9 million. The company achieved sequential revenue growth for the 12th consecutive quarter, driven by broad-based performance across key verticals. Operating EBITDA stood at INR 2,652 million, with a healthy margin of 23%.
eClerx Services Limited Reports Robust Q1 FY27 Results
eClerx Services Limited has announced its financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), highlighting significant year-on-year growth and consistent sequential performance. The company’s operating revenue reached USD 125.9 million, marking a substantial 15.2% increase compared to the same period last year. This achievement also represents a 2.8% sequential growth, extending the company’s streak of sequential revenue growth to twelve consecutive quarters, even amidst a mixed operating environment.
Financial Highlights for Q1 FY27
In Indian Rupee terms, the company’s revenue for the quarter was INR 11,524 million, up 23% year-on-year. Operating EBITDA was reported at INR 2,652 million, with an operating EBITDA margin of 23%. Profit After Tax (PAT) stood at INR 1,643 million, representing a margin of 14%. The slight sequential decline in EBITDA margin was primarily attributed to wage increases.
Key Business Drivers and Growth Areas
The company secured new deals worth USD 41 million, a 25% increase year-on-year, reflecting strong client acquisition momentum. The Analytics and Automation segment showed particular strength, growing 7% sequentially and crossing an annualized run rate of over USD 100 million. eClerx is focused on increasing the share of technology-led services to remain relevant for its clients.
Vertical Performance
- Hi-tech: The outlook remains positive with continued client investment in transformation programs and strong demand for AI and technology capabilities.
- Emerging Business (F&A): Delivered strong growth for the fourth consecutive quarter, including an expansion of F&A support for a client in the APAC region.
- Communication, Media, and Telecom (CMT): Saw growth across international centers, supported by strong delivery and expanding inbound sales capabilities.
- BFSI: Compliance management continues to receive positive responses, with ongoing discussions and pilot completions. New engagements include contact center setup and work in the mortgage area. Operations have commenced in Coimbatore to strengthen the delivery network.
- M&D and Retail: These verticals remain relatively soft due to client challenges with supply chains and cautious spending.
- Fashion and Luxury: Revenue was flat sequentially and up 2% year-on-year, with early signs of recovery expected to continue.
Strategic Outlook and Future Investments
Kapil Jain, Managing Director and Group CEO, expressed confidence in the company’s growth trajectory, emphasizing a focus on technology, AI, and client-centric solutions. Srinivasan Nadadhur, Chief Financial Officer, provided insights into margin drivers and operational metrics, noting increased capacity additions in Indian delivery centers. The company remains committed to its stated EBITDA range of 24% to 28% for the full year.
Source: BSE
