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eClerx Services Limited
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NSE: ECLERX BSE: 532927 INE738I01010 Services Commercial Services & Supplies 🔎 Screen
NIFTY 500 Smallcap 250
₹14,057 Cr
Market Cap
19.9
P/E
1.53
PEG
34.4%
ROCE
28.4%
ROE
0.18
D/E
24.8%
OPM
-38.8%
% from 52W High
2
α RS
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📈 Price History
Ratio Health
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About

EClerx Services Ltd incorporated in 2000, provides business process management, automation and analytics services to a number of Fortune 2000 enterprises, including some of the world's leading financial services, communications, retail, fashion, media & entertainment, manufacturing, travel & leisure and technology companies

✓ Strengths 1
  • Company has a good return on equity (ROE) track record: 3 Years ROE 25.4%
! Concerns

No concerns data yet.

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📈 Growth Pattern
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Solid double-digit revenue growth, but margins fell sharply on wage inflation and lower other income. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹1,170.2 Cr
+23.8% YoY total revenue; op revenue ₹1,152.4 Cr (+23.3% YoY), USD $125.9M (+15.2% YoY)
EBITDA Margin
24.2%
-330 bps QoQ, -64 bps YoY; OPG EBITDA margin 23.0% (-264 bps QoQ, -96 bps YoY)
PAT
₹164.3 Cr
+16.0% YoY; PAT margin 14.0% (-264 bps QoQ, -95 bps YoY); basic EPS ₹17.86
Key Metric
18.1%
Offshore attrition improved from 21.7% in Q4 FY26; delivery utilization 75.5% vs 74.2% QoQ
What Went Right
  • Total revenue grew 23.8% YoY to ₹1,170.2 Cr; operating revenue grew 23.3% YoY and USD revenue grew 15.2% YoY.
  • Constant-currency revenue grew 15.1% YoY and 2.9% QoQ, showing strong underlying demand.
  • PAT rose 16.0% YoY to ₹164.3 Cr with basic EPS of ₹17.86 vs ₹15.08.
  • Total headcount reached 22,499, up ~10% YoY, and offshore attrition improved to 18.1% from 21.7% QoQ.
  • Client quality improved: top-10 contribution rose to 60% from 59%, and $3mm+ client count increased to 25 from 24.
What to Watch
  • EBITDA margin compressed sharply: total EBITDA margin fell 330 bps QoQ to 24.2%; OPG EBITDA margin fell 264 bps QoQ to 23.0%.
  • Wage increments effective April 1, 2026 pushed delivery and support employee cost to 55.6% of operating revenue from 52.8% QoQ.
  • Other income dropped ~36% QoQ to ₹17.9 Cr from ₹28.1 Cr due to lower revaluation/forex gains.
  • Profit growth badly lagged revenue growth: PAT +16.0% YoY and EBIT +18.1% YoY vs revenue +23.8% YoY, showing negative operating leverage.
  • PAT margin fell 95 bps YoY to 14.0%, and BFSI revenue mix declined to 37.6% from 43.3% a year ago.
Investor Lens
Revenue momentum is strong — USD revenue grew 15.2% YoY and constant-currency growth was 15.1% — so the demand thesis is intact. The rest of the P&L is the problem: wage hikes from April 1 pushed delivery cost to 55.6% of operating revenue, and other income fell ~36% QoQ, leaving OPG EBITDA margin at 23.0% (down 264bps QoQ). Clients are still consolidating around eClerx (top-10 share 60%), but BFSI mix fell to 37.6% from 43.3% a year ago — that vertical weakness needs monitoring. Hedges provide visibility at ₹93.41/$ on $273.6M of forwards, though the rupee's move will decide other-income swings. Next quarter, watch whether EBITDA margin can recover toward FY26 levels and whether USD revenue growth stays above 15% YoY.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue jumps 23% YoY but QoQ PAT dips 13.7% on margin pressure
Revenue
Revenue grew 23.2% YoY to ₹1,152.0 Cr, with a modest 4.1% sequential increase. This shows strong year-on-year demand but a sharp slowdown from the March quarter pace.
Profitability
Net profit rose 15.5% YoY to ₹164.0 Cr, but fell 13.7% QoQ. EPS came in at ₹17.47 versus ₹14.87 a year ago, reflecting weaker operating leverage in the quarter.
Margins
OPM dropped to 23% from 24% YoY and sharply from 26% in the prior quarter. This sequential margin compression suggests higher costs or lower utilization, offsetting revenue gains.
Cash Flow
No cash flow data was provided in the release. The reported PAT and D/E ratio suggest adequate earnings coverage, but actual cash conversion could not be assessed.
Balance Sheet
Debt-to-equity stands at a low 0.15, indicating a largely debt-light balance sheet. Strong ROCE of 34.8% and ROE of 29% reflect efficient capital usage.
Key Risks
Sequential margin compression of 300 bps could persist if cost pressures continue. The 13.7% QoQ PAT decline signals slowing momentum, and the 24.7x PE leaves little room for earnings misses.
Outlook
Revenue growth remains healthy, but sustaining margins is a key challenge. Management focus on cost control and deal ramp-up will determine whether QoQ profitability recovers in the coming quarters.
Generated by AI · Jun 2026 results · Not investment advice
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