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Informist, Wednesday, Aug. 5, 2026

 

By Devanshu Singla

 

MUMBAI – eClerx Services Ltd. reported a year-on-year increase in its net profit for the June quarter, supported by strong growth in revenue. However, operating expenses rose faster than revenue, compressing margins. Both net profit and revenue were below the Street estimates. 

 

The company reported a consolidated net profit of INR 1.64 billion for the June quarter, up 16% on year from INR 1.42 billion. This was sharply below the Street estimate of INR 1.81 billion. Sequentially, the net profit fell 13% from INR 1.89 billion.

 

The business process management company's consolidated revenue from operations for the June quarter increased 23% on year to INR 11.52 billion from INR 9.35 billion. This was slightly below the Street estimate of INR 11.74 billion. Sequentially, the company's revenue from operations rose 4% from INR 11.07 billion. In USD terms, operating revenue increased by 15.2% on year to $125.9 million from $109.2 million.

 

The company's earnings before interest, tax, depreciation, and amortisation increased around 21% on year to INR 2.83 billion. However, the EBITDA margin slipped 64 basis points to 24.2% for the reporting quarter. The company's earnings before interest and tax rose 18% on year to INR 2.34 billion, with EBIT margin of 20%, down 97 bps.

 

eClerx Services reported total income of INR 11.70 billion, including other income of INR 179 million. During the June quarter, eClerx Services reported constant currency growth of 15.1% on year and 2.9% sequentially. 

 

Total expenses rose 26% on year to INR 9.52 billion, driven by sharp increase in employee benefit expenses, other expenses, and cost of technical sub-contractors. The company's employee benefit expenses rose 25% on year to INR 7.29 billion, other expenses rose 21% to INR 1.30 billion, and the cost of technical sub-contractors increased 42% to INR 281 million. 

 

On a segment basis, the company's 38% revenue was from banks, financial services, and insurance industry, 26% from cable, media, and telecom, 16% from HiTech, and 12% from emerging industries. The fashion and luxury and retail industry contributed 8% to the revenue. The company's 60% revenue came from its top 10 clients. On a geographical basis, North America contributed 78% to the revenue, Europe 16%, and the rest of the world contributed 6%.

 

The company reported total headcount of 22,499, up from 20,385 in the year-ago quarter. Wednesday, shares of eClerx Services ended almost unchanged at INR 1,917.80 apiece on the National Stock Exchange. The company's earnings were released after market hours.  End

 

US$1 = INR 95.12

 

Edited by Deepshikha Bhardwaj

 

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