eClerx Services (ECLERX) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 operating revenue reached $121.7M, up 5.4% sequentially and 18.4% YoY, with strong EBITDA and PAT growth.

• Net profit for Q3 FY26 was INR 1,920M, a 4.8% sequential increase and 32.9% higher YoY.

• Deal wins in Q3 totaled $45M, with analytics and automation up 10% sequentially.

• Top 10 client concentration declined to 60%, reflecting a broader client base.

• Recognized for advancements in agentic AI and operational excellence, including awards from Adobe and Everest Group.

Financial highlights

• Q3 operating revenue: $121.7M (up 5.4% QoQ); INR 10,703M (up 6.5% QoQ); total revenue INR 11,017M (up 6.4% QoQ, 22.2% YoY).

• Q3 EBITDA: INR 3,075M (28% margin, up 3% QoQ); PAT: INR 1,920M (17.5% margin, up nearly 5% QoQ).

• Nine-month FY26 USD revenue: $346.5M (up 18% YoY); INR 30,097M (up 22% YoY); PAT: INR 5,068M (up 33% YoY).

• Q3 EBIT margin was 23.7%; EPS (basic) for Q3 FY26 was INR 40.8.

• Net operating cash flow: $2,536M; EBITDA conversion at 82%.

Outlook and guidance

• Q4 expected to be softer due to near-term volatility, but medium- to long-term demand outlook remains positive.

• Guidance maintained for EBITDA margin between 24%-28% and top-quartile peer group growth.

• Management highlighted risks and uncertainties related to acquisitions, regulatory, and economic conditions.

• Ongoing evaluation of regulatory changes, including new Labour Codes, and their impact on employee benefits.

• Pipeline remains robust, with continued focus on cross-sell, upsell, and expansion into adjacent areas.