eClerx Services (ECLERX) Q4 24/25 earnings summary

Executive summary

• Achieved strong revenue and margin growth in Q4 and FY25, driven by a strategy focused on sales, client mining, and new logo acquisition, with consolidated FY25 revenue reaching up to ₹34,396 million and net profit up to ₹5,411 million.

• Opened new delivery centers in Lima and Cairo, expanding the global footprint and client wallet share, and added two new subsidiaries: eClerx Peru S.A.C. and eClerx Egypt.

• Recognized as Partner of the Year 2024 by a Fortune 100 client, with additional awards for service excellence.

• The Board recommended a final dividend of ₹1 per equity share for FY25.

• Completed a buyback of 1,375,000 equity shares at ₹2,800 per share, totaling ₹3,850 million.

Financial highlights

• Q4 operating revenue was up to $104.9M (INR 9,165M), up 4.7% sequentially; FY25 revenue up to $397.6M (INR 34,396M), up 15.0% YoY.

• Q4 EBITDA was INR 2,505M (27.3% margin), up 9.8% sequentially; FY25 EBITDA up to INR 8,946M, margin at 26%.

• FY25 net profit was up to INR 5,411M, up 5.8% YoY; EPS (basic) for FY25 was INR 114.19.

• Net operating cash flow for FY25 was INR 6,546.2M, with cash and cash equivalents at year-end up to INR 10,258M.

• Deal wins: $51M in Q4, $140M for the year; analytics and automation up 17% YoY.

Outlook and guidance

• Cautiously optimistic for FY26, expecting higher ACV of deals and maintaining margin guidance of 24%-28%.

• Wage increments to be effective from April 1, 2025; Q1 expected to face headwinds from wage hikes and macroeconomic volatility.

• Pipeline for FY26 is stronger than at the start of FY25.

• The company continues to operate in a single segment: data management, analytics solutions, and process outsourcing services.