eClerx Services (ECLERX) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw strong revenue and margin growth, with revenue up 17.7% year-over-year to INR 9,451 million and USD revenue up 17.1% YoY; margins declined sequentially due to wage hikes.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board and Audit Committee, with no qualifications in the auditor's review reports.

• New delivery centers were opened in Lima (live in Q1) and Cairo (to go live in Q2), supporting expansion and client growth.

• The company received several industry recognitions, including inclusion in Everest Group's Leaders Quadrant and awards for technology leadership and financial discipline.

• Significant upskilling initiatives were undertaken, with 8,000 employees trained in GenAI and ongoing training on GitHub Copilot to drive productivity.

Financial highlights

• Q1 operating revenue was INR 9,346 million, up 4% sequentially and 19.5% year-over-year; consolidated revenue reached INR 9,345.56 million, and standalone revenue was ₹6,650.84 million.

• EBITDA was INR 2,346 million (24.8% margin), up 25.3% year-over-year but down 6.3% sequentially; PAT was INR 1,417 million (15% margin), up 26.9% year-over-year but down 6.9% sequentially.

• Total revenue including other income was INR 9,451 million, up 3.1% sequentially and 17.7% year-over-year.

• Basic EPS for the quarter: Standalone ₹19.78, Consolidated ₹30.16.

• Deal wins for Q1 totaled $32 million; ACV of new deals (excluding CLX) was $102.1 million.

Outlook and guidance

• Management remains cautiously optimistic, expecting sequential growth in Q2 and full-year ACV to exceed FY25; margin guidance is maintained at 24% to 28%.

• No change in revenue growth guidance due to macroeconomic uncertainties, but Q2 is expected to show sequential growth.

• Forward-looking statements highlight risks from integration of acquisitions and regulatory/economic conditions.