eClerx Services Q2 FY26 results: net profit up 31.5% to ₹183.46 crore, revenue up 20.8%

How did eClerx Services perform in Q2 FY26?

On a consolidated basis, eClerx Services reported revenue of ₹1,005 crore in Q2 FY26, against ₹831.84 crore in Q2 FY25 and ₹934.56 crore in Q1 FY26. Total income was ₹1,032.09 crore. On the standalone basis, revenue was ₹691.29 crore and profit attributable to owners was ₹110.11 crore.

EBITDA rose to ₹271.06 crore from ₹215.66 crore in Q2 FY25 and ₹220.54 crore in Q1 FY26. The EBITDA margin was 27.0%, compared with 25.9% a year earlier and 23.6% in the previous quarter. Profit before tax was ₹245 crore.

Net profit for the quarter was ₹183.46 crore, while profit attributable to owners was ₹183.19 crore and basic EPS was ₹39.0. The net profit margin was 18.3%, compared with 16.8% in Q2 FY25 and 15.1% in Q1 FY26.

What changed in eClerx Services' costs and profit?

Total expenses increased by ₹130 crore from Q2 FY25 to ₹787.09 crore, slower than the rise in total income. Employee cost was ₹610 crore, up ₹107.22 crore or 21.3%, while finance costs rose ₹2.67 crore to ₹10.79 crore, depreciation increased ₹9.70 crore to ₹42.50 crore and other expenses increased ₹10.40 crore to ₹123.79 crore.

Other income rose by ₹14.12 crore from ₹13.12 crore in Q2 FY25 to ₹27.24 crore. There was no exceptional item in either quarter. Tax expense increased by ₹13.18 crore to ₹61.54 crore, while profit before tax rose by ₹57.14 crore to ₹245 crore.

Against Q1 FY26, other income increased by ₹13.13 crore and other expenses fell by ₹6.88 crore, while employee cost rose by ₹26.65 crore. Total expenses increased by ₹26.48 crore, while total income rose by ₹83.42 crore. Management attributed 200 bps of the 270 bps sequential EBITDA-margin expansion excluding other income to foreign exchange.

How did the first half of FY26 go?

In H1 FY26, consolidated revenue was ₹1,939.41 crore, up 20.2% from ₹1,613.76 crore in H1 FY25. Total income rose 20.2% to ₹1,980.76 crore from ₹1,647.79 crore.

Profit before tax increased 29.0% to ₹433.06 crore from ₹335.77 crore, while net profit rose 29.2% to ₹325.01 crore from ₹251.54 crore. Basic EPS increased 31.2% to ₹69.16 from ₹52.73.

What do the balance sheet and cash flow show?

At 30 September 2025, total assets were ₹3,530.16 crore, against ₹3,145.67 crore at 31 March 2025, while total equity was ₹2,626.78 crore compared with ₹2,307.96 crore. Cash and cash equivalents increased to ₹594.02 crore from ₹541.70 crore, and borrowings remained nil. Trade receivables rose to ₹853.36 crore from ₹789.88 crore, while trade payables were unchanged at ₹78.57 crore.

H1 FY26 operating cash flow was ₹336.01 crore, compared with ₹290.19 crore in H1 FY25. Investing cash flow was an outflow of ₹192.84 crore against an inflow of ₹286.97 crore, financing cash flow was an outflow of ₹118.48 crore compared with ₹525.96 crore, and capital expenditure was ₹52.49 crore against ₹56.22 crore. H1 FY25 closing cash was ₹411.81 crore.

How has eClerx Services done over the last 8 quarters?

Revenue has risen year on year in each of the last eight quarters, reaching ₹1,004.85 crore in Q2 FY26 from ₹752.76 crore in Q3 FY24. Net profit has increased year on year for the last three quarters and reached ₹183.46 crore in Q2 FY26.

The EBITDA margin bottomed at 21.3% in Q1 FY25 before recovering to 25.9% in Q2 FY25 and reaching 27.0% in Q2 FY26. Revenue and net profit both reached their highest levels in the series in Q2 FY26, at ₹1,004.85 crore and ₹183.46 crore.

What else did the company announce?

The board approved a buyback of fully paid-up equity shares through the tender-offer route for an amount not exceeding ₹300 crore, excluding transaction costs, at ₹4,500 per share. A separate same-day filing said the tender offer covered up to 666,666 shares and excluded promoters.

The board also approved Srinjay Sengupta's re-appointment as a non-executive independent director for a second five-year term, from 28 January 2026 to 27 January 2031. The appointment is subject to shareholder approval through postal ballot. No dividend was reported in the same-day filings.

What did eClerx Services' management say?

Management maintained the FY26 EBITDA-margin band at 24-28% and expected Q3 FY26 margin to be lower than Q2 because of rupee appreciation since 30 September and planned investment in analytics, technology and sales. It said full-year deal-win ACV was expected to exceed FY25's ₹142 million, while roll-off remained in the 15-20% range.

Management said the Cairo delivery centre reached top-quartile performance within four months of production and that preliminary interest was being shown by other clients. It also identified Luxury/Fashion as a soft vertical, while HiTech, CMT and emerging businesses were described as strong. Attrition was running at 20%, and macro trade and tariff conditions were cited as risks.

CFO Srinivasan Nadadhur said: “It is part of the capital allocation policy that at any point of time, over, let's say, 12 to 18 months period, we would like to return 50% of cash back to shareholders if it is not required for use by the company.” He also said 200 bps of the 270 bps sequential EBITDA-margin expansion excluding other income came from foreign exchange.

How did eClerx Services shares react?

After the filing appeared after market hours, the stock was 2.5% higher after five and 15 minutes and 2.8% higher after 30 minutes. On the reaction day, it closed 8.7% above the previous close of ₹2,222.50, compared with a 2.0% median move for the industry's other stocks.

By the next day's close, the stock was 6.2% above its pre-results close, against a 0.2% industry decline; by the fifth session, it was 6.4% above, compared with a 1.4% industry decline. Its excess moves over the industry median were 6.7 percentage points on the reaction day, 6.5 percentage points on the next day and 7.8 percentage points after five sessions.

Earlier reaction-day moves were mixed: 14.4% on 14 May 2025, 8.3% on 5 November 2024 and 8.4% on 24 July 2025, alongside declines of 5.4% on 29 January 2025, 3.4% on 13 August 2024 and 5.7% on 16 May 2024.

How did other Business Process Outsourcing (BPO)/ Knowledge Process Outsourcing (KPO) companies do?

Nine other Business Process Outsourcing and Knowledge Process Outsourcing companies were compared for the quarter. Their median revenue growth was 1.8%, while eClerx Services' revenue growth was higher; eight peers grew slower than the company and one grew faster.

Profit was compared for eight peers, of which six reported higher profit. The peer comparison was dated 5 November 2026.