eClerx Services Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript eClerx Services Ltd filed with BSE on 19 May 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 FY26 operating revenue of USD 469 million, up 17.9% year-on-year, with EBITDA growing 29% to INR 1,153 crores and net profit rising 30% to INR 706 crores. Q4 operating revenue was USD 122 million, up 17% year-on-year but only 0.6% sequentially, with operating EBITDA margin at 25.7%. Management described BFSI, M&D and retail verticals as softer in the quarter while CMT and the analytics and automation business, now a USD 90 million book, showed strong growth, and the company reported its first large-scale Agentic AI win with deployment planned for Q1 FY27.
Numbers mentioned
Operating revenue: USD 469 million (FY26)
p. 2
“FY '26 operating revenue came in at USD 469 million, up 17.9% year-on-year in dollar terms and up by 22% in INR terms at INR 4,217 crores.”
Kapil Jain, page 2 of the filed PDF · View the filing
EBITDA: INR 1,153 crores (FY26)
p. 2
“EBITDA grew 29% to INR 1,153 crores, with margins expanding meaningfully.”
Kapil Jain, page 2 of the filed PDF · View the filing
Net profit: INR 706 crores (FY26)
p. 2
“Net profit rose 30% to INR 706 crores, and EPS increased 33% post bonus issue.”
Kapil Jain, page 2 of the filed PDF · View the filing
Operating revenue: USD 122 million (Q4 FY26)
p. 2
“Q4 operating revenue was USD 122 million, up 17% year-on-year, with 0.6% sequential growth.”
Kapil Jain, page 2 of the filed PDF · View the filing
INR revenue: INR 1,135 crores (Q4 FY26)
p. 2
“INR revenue for the quarter was INR 1,135 crores, up 24% year-on-year.”
Kapil Jain, page 2 of the filed PDF · View the filing
Operating EBITDA margin: 25.7% (Q4 FY26)
p. 2
“Operating EBITDA for the quarter came in at INR 2,841 million, at a 25.7% margin, up 2.8% sequentially.”
Kapil Jain, page 2 of the filed PDF · View the filing
PAT margin: 16.7% (Q4 FY26)
p. 2
“Q4 PAT stood at INR 1,894 million, at a 16.7% margin.”
Kapil Jain, page 2 of the filed PDF · View the filing
New deal wins: USD 46 million (Q4 FY26)
p. 2
“New deal wins for Q4 were USD 46 million, reflecting steady momentum and a strong signal of client confidence in our capabilities going into FY '27.”
Kapil Jain, page 2 of the filed PDF · View the filing
Analytics and automation book size: USD 90 million
p. 2
“Analytics and automation is now a USD 90 million book.”
Kapil Jain, page 2 of the filed PDF · View the filing
Top 10 client concentration: 59%
p. 3
“Top 10 client concentration has come down to 59% from 63% to 64%, a healthy sign of portfolio diversification that reduces concentration risk as we scale.”
Kapil Jain, page 3 of the filed PDF · View the filing
Utilization: 74% (Q4 FY26)
p. 4
“Utilization in Q4 is 74%, lower than the eight quarter high of 76.5% that we saw in Q3.”
Srinivasan Nadadhur, page 4 of the filed PDF · View the filing
Attrition: 21% (Q4 FY26)
p. 4
“Attrition at 21% is marginally up as compared to Q2 and Q3, but lower than what we've seen in the past.”
Srinivasan Nadadhur, page 4 of the filed PDF · View the filing
OCF-to-EBITDA ratio: 75% (FY26)
p. 4
“The OCF-to-EBITDA ratio is 75%, the highest in the last 5 years.”
Srinivasan Nadadhur, page 4 of the filed PDF · View the filing
Free cash flow: INR 7,560 million (FY26)
p. 4
“In FY '26, we generated INR 8,729 million of cash from operations and a free cash flow of INR 7,560 million, 33% and 41% higher than the previous year.”
Srinivasan Nadadhur, page 4 of the filed PDF · View the filing
Dividend: INR 1 per share
p. 4
“The Board has proposed a dividend of INR 1 per share.”
Srinivasan Nadadhur, 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.
Revenue growth — top quartile of peer segment growth · FY27
stated firmly by Kapil Jain
p. 5
“For FY '27 also, we are saying that we will be in the top quartile of the growth.”
Kapil Jain, page 5 of the filed PDF · View the filing
EBITDA margin — 24% to 28% · FY27
stated firmly by Kapil Jain
p. 5
“So, on margin, yes, we would like to retain the same guidance between 24% to 28%.”
Kapil Jain, page 5 of the filed PDF · View the filing
Q1 FY27 sequential growth — Q1 FY27
stated firmly by Kapil Jain
p. 12
“We do expect Q1 definitely to be stronger than Q4.”
Kapil Jain, page 12 of the filed PDF · View the filing
Wage hike impact — 300 to 350 basis points · Q1 FY27
stated firmly by Srinivasan Nadadhur
p. 12
“Yes, the wage hike impact in Q1 will be similar. So typically, about 300 to 350 basis points.”
Srinivasan Nadadhur, page 12 of the filed PDF · View the filing
Analytics and automation growth
stated as an aspiration by Kapil Jain
p. 14
“So, we expect that it has to grow faster than the company growth, which has been the case this year, and we'll continue to aspire for that.”
Kapil Jain, page 14 of the filed PDF · View the filing
CLX business growth — H1 FY27
stated as an aspiration by Kapil Jain
p. 3
“Fashion and Luxury had a sluggish year, but our CLX business is expected to return to growth in H1 FY '27, supported by new GenAI wins at a key client, as well as what we are seeing as some positive green shoots in the fashion and luxury industry segment.”
Kapil Jain, page 3 of the filed PDF · View the filing
Deal bookings growth — FY27
stated as an aspiration by Kapil Jain
p. 17
“Our aspiration is to definitely show year-on-year growth, but it's a little difficult to predict because we showed a 24% growth.”
Kapil Jain, page 17 of the filed PDF · View the filing
Capital allocation — buybacks as preferred option
stated firmly by Srinivasan Nadadhur
p. 17
“No. Buybacks will continue to remain the preferred option.”
Srinivasan Nadadhur, page 17 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 declined to commit on the direction but reaffirmed top quartile growth expectations for FY27.
Answered by Kapil Jain
Asked by Sandeep Shah: Given softer Q4 revenue growth versus last year's strong exit, will FY27 growth momentum be lower than FY26?
p. 6
“In terms of whether it will be lower or higher, I think I wouldn't want to comment at this stage.”
Kapil Jain, page 6 of the filed PDF · View the filing
Management said Q4 was in line with expectations and confirmed the same 24%-28% margin guidance.
Answered by Kapil Jain
Asked by Girish Pai: Was Q4 softer than expected, and is margin guidance for FY27 similar to FY26?
p. 5
“I think it was in line with what we had expected, and which is what we had told you guys during our Q3 results. So no, it was not a surprise for us.”
Kapil Jain, page 5 of the filed PDF · View the filing
Management said they do not expect the roll-off rate to change meaningfully due to AI.
Answered by Srinivasan Nadadhur
Asked by Jimit Gandhi: Will AI reduce the typical 15-20% revenue roll-off rate?
p. 8
“So, we don't think that number is going to meaningfully change because AI is another productivity tool, and it takes time to implement.”
Srinivasan Nadadhur, page 8 of the filed PDF · View the filing
Management attributed the increase to a reclassification of expenses rather than a true business trend.
Answered by Srinivasan Nadadhur
Asked by Rohit Thorat: What is driving the sequential increase in subcontractor expenses?
p. 9
“So, there is a reclassification of some expenses from business promotion into subcon in this quarter, which is for the full year, which is why that number is appearing high.”
Srinivasan Nadadhur, page 9 of the filed PDF · View the filing
Management confirmed that most of the hedge book is set well below spot rates, limiting FX upside for FY27.
Answered by Srinivasan Nadadhur
Asked by Sandeep Shah: How does the FX hedge book affect potential FY27 currency upside?
p. 9
“So, as you noted, most of our hedge book is probably at INR 89 or something like that for FY '27.”
Srinivasan Nadadhur, page 9 of the filed PDF · View the filing
Management said they aspire to grow bookings year-on-year but found it difficult to predict precisely.
Answered by Kapil Jain
Asked by Abhishek Bhandari: Is USD 40-50 million a new quarterly run rate for deal bookings, and are similar year-on-year gains expected for FY27?
p. 17
“Our aspiration is to definitely show year-on-year growth, but it's a little difficult to predict because we showed a 24% growth.”
Kapil Jain, page 17 of the filed PDF · View the filing
Management acknowledged possible deflationary pressure from competitive dynamics but said it was difficult to quantify.
Answered by Kapil Jain
Asked by Abhishek Bhandari: Are deal bookings showing signs of AI-driven price deflation similar to other IT companies?
p. 18
“So, yes, there could be some deflationary pressure. It's not that I'm shying away. It's a little difficult to predict.”
Kapil Jain, page 18 of the filed PDF · View the filing
Risks flagged
Proposed U.S. regulation restricting offshore call center work
p. 4
“We are closely monitoring the proposed NPRM on offshore call restrictions and maintaining active dialogue with clients on contingency planning.”
Kapil Jain, page 4 of the filed PDF · View the filing
Potential U.S. law limiting offshore outsourcing percentage for telcos and cable companies
p. 17
“I think like this NPRM guidelines on the contact center, I know NASSCOM has also gone and lobbied with the U.S. Congress, if that becomes a rule that telcos and cable companies can only outsource a certain percentage of work and certain percentage of work has to stay within the U.S. could pose a challenge.”
Kapil Jain, page 17 of the filed PDF · View the filing
Regulatory environment changes for financial services and banks affecting client spend
p. 17
“If regulatory environment like it became very stringent for financial services and banks overall regulatory environment, then it eased out, became stringent.”
Kapil Jain, page 17 of the filed PDF · View the filing
Softer engagements in BFSI vertical during the quarter
p. 4
“BFSI had a softer quarter, and a couple of engagements were down, the consulting work that we were doing, but the pipeline is encouraging.”
Kapil Jain, page 4 of the filed PDF · View the filing
Sluggish fashion and luxury business through the year
p. 3
“Fashion and Luxury had a sluggish year, but our CLX business is expected to return to growth in H1 FY '27, supported by new GenAI wins at a key client, as well as what we are seeing as some positive green shoots in the fashion and luxury industry segment.”
Kapil Jain, page 3 of the filed PDF · View the filing
Competitive landscape and potential deflationary pressure on contract values
p. 18
“Some of it maybe, Abhishek, I wouldn't say deflationary pressures because of AI, but the competitive landscape like I think that was to the previous question.”
Kapil Jain, page 18 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.