eClerx Services (ECLERX) Q2 26/27 earnings summary

Executive summary

• Q2 operating revenue was $127.7m, up 10.6% YoY and 1.5% QoQ; this marked the 13th consecutive quarter of sequential revenue growth.

• Growth continued amid selective spending and longer sales cycles; AI and technology investment continued as margins improved QoQ.

Financial highlights

• Q2 operating revenue was INR 11,886.57m, up 18.3% YoY and 3.2% QoQ; USD growth was 12.9% YoY in constant currency.

• Total revenue was INR 12,126m, up 17.1% YoY and 3.6% QoQ; other income was INR 239.92m.

• Operating EBITDA was INR 2,839m at a 23.9% margin; EBITDA was INR 3,079m. PAT was INR 1,805.97m, up 9.8% QoQ.

• H1 operating revenue was $253.6m, up 12.8% YoY; H1 EBITDA was INR 5,910m, up 10.9%, and PAT was INR 3,448.39m, up 6.1%.

• Q2 basic EPS was INR 19.63; H1 basic EPS was INR 37.49.

Outlook and guidance

• Full-year EBITDA margin guidance remains 24%–28%; margin improvement depends on revenue growth and replacing roles at the lower end of the workforce pyramid.

• FY26 ACV remains the target, but delayed client decisions make matching last year’s level difficult; management is working to maintain or exceed it.

• BFSI recovery is expected cautiously in Q4; seasonal recovery is expected in fashion and luxury, while high-tech and communication media pipelines remain healthy.

• H2 CapEx is expected to be in line with H1; sequential growth could pick up if delayed sales convert.