eClerx Services Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript eClerx Services Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
eClerx reported Q1FY27 operating revenue of USD 125.9 million, up 15.2% year-on-year, marking its 12th consecutive quarter of sequential growth. Operating EBITDA margin was 23% and PAT margin was 14%, with the sequential margin decline attributed mainly to wage increases. Management said Analytics and Automation crossed a USD 100 million annual run rate and new deal wins were USD 41 million, up 25% year-on-year, while BFSI and M&D/Retail verticals remained relatively soft.
Numbers mentioned
Operating revenue: USD 125.9 million (Q1FY27)
p. 2
“Q1FY27 operating revenue was USD 125.9 million, up 15.2% year-on-year, with 2.8% sequential growth”
Kapil Jain, page 2 of the filed PDF · View the filing
INR revenue: INR 11,524 million (Q1FY27)
p. 2
“INR revenue for the quarter was INR 11,524 million, up 23% year-on-year.”
Kapil Jain, page 2 of the filed PDF · View the filing
Operating EBITDA: INR 2,652 million at 23% margin (Q1FY27)
p. 2
“Operating EBITDA was INR 2,652 million at a margin of 23%; PAT stood at INR 1,643 million at a margin of 14%.”
Kapil Jain, page 2 of the filed PDF · View the filing
New deal wins: USD 41 million (Q1FY27)
p. 2
“New deal wins were USD 41 million, up 25% year-on-year, reflecting the momentum built over recent quarters.”
Kapil Jain, page 2 of the filed PDF · View the filing
Analytics and Automation growth: 7% sequential, crossed USD 100 million annual run rate (Q1FY27)
p. 2
“Analytics and Automation grew 7% sequentially, well ahead of the company average, and has now crossed a USD 100 million annual run rate, an important milestone for us.”
Kapil Jain, page 2 of the filed PDF · View the filing
Net operating cash flow: INR 1,073 million (Q1FY27)
p. 3
“The net operating cash flow for the quarter is INR 1,073 million.”
Srinivasan Nadadhur, page 3 of the filed PDF · View the filing
OCF to EBITDA ratio: 38% (Q1FY27)
p. 3
“The OCF to EBITDA ratio is 38%, and as you must be aware, Q1 is lower than the average, as the annual variable payout for FY '26 is paid out in this quarter.”
Srinivasan Nadadhur, page 3 of the filed PDF · View the filing
Utilization: 75.5% (Q1FY27)
p. 3
“Utilization in Q1 is 75.5%, which is higher than what we saw in Q4.”
Srinivasan Nadadhur, page 3 of the filed PDF · View the filing
Attrition: 21% (Q1FY27)
p. 3
“On other key metrics, DSO is at 79, attrition is at 21%, which is about the same as the previous quarter.”
Srinivasan Nadadhur, page 3 of the filed PDF · View the filing
Headcount change: down 0.6% Q-on-Q (Q1FY27)
p. 3
“Total headcount is down by 0.6% Q-on-Q, but headcount billed to clients was up because of the higher utilization.”
Srinivasan Nadadhur, page 3 of the filed PDF · View the filing
Annualized revenue run rate: over USD 500 million (Q1FY27)
p. 3
“We have also crossed an annualized revenue run rate of over USD 500 million, an important milestone for the company.”
Kapil Jain, page 3 of the filed PDF · View the filing
FY26 ACV: around $170 million (FY26)
p. 4
“Sandeep, for the full year last year, we delivered around $170 million ACV.”
Kapil Jain, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 24% to 28% · FY27
stated firmly by Srinivasan Nadadhur
p. 4
“Despite all of this, we are confident of meeting the stated EBITDA range of 24% to 28% for the full year.”
Srinivasan Nadadhur, page 4 of the filed PDF · View the filing
BFSI segment growth — H2FY27
stated conditionally by Kapil Jain
p. 4
“I think we should see momentum build up and giving us benefits starting in H2FY27.”
Kapil Jain, page 4 of the filed PDF · View the filing
Revenue growth — top-quartile growth · FY27
stated firmly by Kapil Jain
p. 5
“I think for the full year, we are very confident of delivering the top-quartile growth.”
Kapil Jain, page 5 of the filed PDF · View the filing
ACV — higher than $170 million · FY27/FY28
stated as an aspiration by Kapil Jain
p. 4
“And what we are aspiring for is to definitely do at least what we did last year and grow on that number because that will give us a good tailwind as we enter '27 ‘28.”
Kapil Jain, page 4 of the filed PDF · View the filing
Fashion and Luxury (CLX) full year growth — around 0% to 2% · FY27
stated conditionally by Srinivasan Nadadhur
p. 7
“I think full year for CLX is probably around 0% to 2%. I think we should be able to do a little better this year.”
Srinivasan Nadadhur, page 7 of the filed PDF · View the filing
Roll-off as % of revenue — between 15% and 20% of revenues · FY27
stated conditionally by Srinivasan Nadadhur
p. 7
“But generally, if you look at it in a 4-quarter period, then it is generally between 15% and 20% of revenues for the year. And we expect that, that should broadly hold up this year as well.”
Srinivasan Nadadhur, page 7 of the filed PDF · View the filing
Capex — INR 130 crores to INR 150 crores · FY27
stated firmly by Srinivasan Nadadhur
p. 12
“No, whole year. INR 130 crores to INR 150 crores, let's say.”
Srinivasan Nadadhur, page 12 of the filed PDF · View the filing
EBITDA margin range — 24% to 28%
stated as an aspiration by Kapil Jain
p. 12
“Girish, at this stage, we think that we would like to stay, and I don't see any reason going outside the range between 24% to 28%.”
Kapil Jain, page 12 of the filed PDF · View the filing
Tech analytics share of revenue — 30% to 40% of revenue
stated as an aspiration by Kapil Jain
p. 12
“if we continue in this direction and if we are able to get 30% to 40% of our revenue coming in from tech analytics, despite the competitive pressure, we should be able to hold the margins in this range.”
Kapil Jain, page 12 of the filed PDF · View the filing
Margin trajectory
stated conditionally by Srinivasan Nadadhur
p. 11
“Margins will continue to improve because this quarter is when we gave out the increments. So, from now on, if everything stays equal and there is revenue growth, then margin should improve.”
Srinivasan Nadadhur, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the growth gradient is improving and expects the trend to turn positive starting H2FY27.
Answered by Kapil Jain
Asked by Yash Goenka: Is BFSI segment lag a concern and when will it catch up with company growth?
p. 5
“So, if you see, the gradient is moving in a positive direction, and with the pipeline and the discussions we are having, we are confident to change the tide and bring it to the positive territory.”
Kapil Jain, page 5 of the filed PDF · View the filing
Management said total headcount declined but billed headcount rose due to higher utilization, and reiterated confidence in full-year top-quartile growth.
Answered by Kapil Jain
Asked by Sandeep Shah: Does the headcount decline signal a softer quarter ahead or is it utilization/AI-related?
p. 5
“The total headcount has come down, but the billed headcount has increased, and so that's the reason for the headcount reduction.”
Kapil Jain, page 5 of the filed PDF · View the filing
Management quantified the FX impact as roughly 50 bps of the total 330 bps quarter-on-quarter margin change, with increments being the majority driver.
Answered by Srinivasan Nadadhur
Asked by Shradha Agrawal: Was there an FX mitigation impact on margins this quarter?
p. 6
“Yes. So, excluding FX, I think the impact on quarter-on-quarter delivery would have been 330 bps, of which the majority would have been increments.”
Srinivasan Nadadhur, page 6 of the filed PDF · View the filing
Management said there was no regulatory change and attributed the CMT sequential slowdown to a quarterly aberration.
Answered by Kapil Jain
Asked by Shradha Agrawal: Is CMT softness linked to U.S. regulatory changes on offshore call operations?
p. 7
“No. There is no further change in either direction from what we reported in the last quarter.”
Kapil Jain, page 7 of the filed PDF · View the filing
Management said roll-off trends remain volatile but generally consistent within a 15-20% of revenue range annually, and confirmed Q2 seasonal softness in fashion/luxury.
Answered by Srinivasan Nadadhur
Asked by Dipesh Mehta: Are there changes in roll-off trends due to AI/technology adoption, and how does seasonality affect CMT/fashion and luxury in Q2?
p. 7
“So, on CLX, you are right that Q2 is soft. But if we look at Y-o-Y comparisons for H1 to H1, we think that we will still be up for fashion and luxury.”
Srinivasan Nadadhur, page 7 of the filed PDF · View the filing
Management gave a capex figure for the current year but said multi-year capex depends on future Board decisions.
Answered by Srinivasan Nadadhur
Asked by Vinit Thakur: What is the capex guidance and expected revenue growth for the next three years?
p. 7
“Capex, we are slightly higher. We are probably running at INR 130 Crores is my estimate.”
Srinivasan Nadadhur, page 7 of the filed PDF · View the filing
Management acknowledged pricing pressure exists but said it was not extraordinary and that total cost of ownership matters more than price alone.
Answered by Kapil Jain
Asked by Sandeep Shah: Is the industry-wide bullishness on agentic AI operations driving more competitive pressure on deal sizes?
p. 12
“Yes, there are pressures that we are seeing, but nothing untoward to say.”
Kapil Jain, page 12 of the filed PDF · View the filing
Management said client behavior is mixed, with some moving from non-voice to voice, and that the company's non-voice share remains comfortably higher.
Answered by Kapil Jain
Asked by Sandeep Shah: Will the new BFSI contact center increase the company's voice revenue share, given AI disruption risk to voice work?
p. 12
“We are seeing clients moving from non-voice to voice.”
Kapil Jain, page 12 of the filed PDF · View the filing
Management said it aims to hold margins within the 24-28% range, supported by a higher share of tech/analytics revenue.
Answered by Kapil Jain
Asked by Girish Pai: What is the long-term margin trajectory as the company scales from $500 million toward $1 billion in revenue?
p. 12
“Girish, at this stage, we think that we would like to stay, and I don't see any reason going outside the range between 24% to 28%.”
Kapil Jain, page 12 of the filed PDF · View the filing
Risks flagged
Prolonged Middle East conflict causing supply chain challenges and cautious client spending in M&D and Retail
p. 3
“Clients continue to face supply chain challenges from the prolonged Middle East conflict, resulting in more cautious spending, longer decision cycles, and some delays in discretionary projects.”
Kapil Jain, page 3 of the filed PDF · View the filing
New delivery locations like Cairo, Lima and Manila operate at lower gross margins, creating downside on margin from revenue mix shift
p. 4
“As you may be aware, these locations operate at a lower gross margin than India, and the change in revenue mix will have some downside on margin.”
Srinivasan Nadadhur, page 4 of the filed PDF · View the filing
Rising G&A costs for computers, servers and networking infrastructure
p. 5
“We are also seeing an uptick in G&A costs, especially for computers, servers, and networking infrastructure.”
Srinivasan Nadadhur, page 5 of the filed PDF · View the filing
Pricing pressure from increased competition in AI-led/agentic deals
p. 12
“Yes, there are pressures that we are seeing, but nothing untoward to say.”
Kapil Jain, page 12 of the filed PDF · View the filing
Q2 seasonal softness in fashion and luxury due to European holiday season
p. 12
“And Q2 for fashion and luxury, because of the holiday season in Europe, is usually soft.”
Kapil Jain, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.