eClerx Services Q2 FY27 results: net profit down 1.6% to ₹180.60 crore, revenue up 18.3%

How did eClerx Services perform in Q2 FY27?

eClerx Services reported consolidated revenue of ₹1,189 crore for Q2 FY27, up ₹183.81 crore or 18.3% from ₹1,005 crore in Q2 FY26 and ₹36.30 crore or 3.2% from ₹1,152 crore in Q1 FY27. EBITDA rose ₹12.82 crore or 4.7% year on year to ₹283.88 crore and increased ₹18.64 crore or 7.0% sequentially. The EBITDA margin was 23.9%, down 3.1 percentage points from 27.0% but up 0.9 percentage points from 23.0% in the previous quarter.

The company reported a net profit of ₹180.60 crore, down ₹2.86 crore or 1.6% from ₹183.46 crore in Q2 FY26, but up ₹16.36 crore or 10.0% from ₹164.24 crore in Q1 FY27. Profit before tax was ₹236.88 crore, down ₹8.12 crore or 3.3% from the year-ago quarter and up ₹18.27 crore or 8.4% sequentially. Basic EPS was ₹19.63, against ₹39.00 in Q2 FY26 and ₹17.86 in Q1 FY27. On a standalone basis, revenue was ₹811.84 crore and PAT was ₹135.18 crore.

What changed in eClerx Services' costs and profit?

Total expenses increased ₹188.68 crore or 24.0% from Q2 FY26 to ₹975.77 crore, outpacing the rise in revenue. Employee cost was ₹741.14 crore, up ₹131.14 crore or 21.5% year on year; finance costs rose ₹4.39 crore or 40.7% to ₹15.18 crore; depreciation increased ₹13.32 crore or 31.3% to ₹55.82 crore; and other expenses increased ₹39.85 crore or 32.2% to ₹163.64 crore. There was no exceptional item in either quarter.

Other income fell ₹3.25 crore or 11.9% from ₹27.24 crore in Q2 FY26 to ₹23.99 crore in Q2 FY27. Tax expense declined ₹5.26 crore or 8.5% to ₹56.28 crore. Against Q1 FY27, employee cost rose ₹12.29 crore, depreciation increased ₹6.21 crore and other expenses increased ₹5.37 crore, while other income increased ₹6.13 crore and tax rose ₹1.91 crore. The filing said higher revaluation income caused other income to increase sequentially.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹2,341.01 crore, up ₹401.60 crore or 20.7% from ₹1,939.41 crore in H1 FY26. Total income rose ₹402.11 crore or 20.3% to ₹2,382.87 crore. The company reported no exceptional item for either half-year.

H1 FY27 profit before tax was ₹455.49 crore, up ₹22.43 crore or 5.2% from ₹433.06 crore in H1 FY26. PAT rose ₹19.83 crore or 6.1% to ₹344.84 crore from ₹325.01 crore, while EPS was ₹37.49 against ₹69.16 in the earlier period. The filing noted that earnings per share for the earlier period had been restated for the bonus shares issued in Q4 FY26.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹4,061.66 crore, up from ₹3,697.02 crore at 31 March 2026, and total equity was ₹2,918.14 crore against ₹2,564.24 crore. The company had no borrowings at either date. Cash was ₹729.82 crore, compared with ₹696.77 crore, while trade receivables rose from ₹1,014.34 crore to ₹1,069.91 crore and trade payables increased from ₹100.01 crore to ₹111.13 crore.

H1 FY27 operating cash flow was ₹376.75 crore, compared with ₹336.01 crore in H1 FY26. Investing cash flow was ₹192.84 crore in each half-year, and financing cash flow was ₹163.22 crore against ₹118.48 crore. Capital expenditure was ₹103.95 crore in H1 FY27, up from ₹52.49 crore in H1 FY26.

How has eClerx Services done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis and reached ₹1,188.66 crore in Q2 FY27, up from ₹1,152.36 crore in Q1 FY27. PAT recovered from ₹164.24 crore in Q1 FY27 to ₹180.60 crore in Q2 FY27, but remained below the ₹191.81 crore reported in Q3 FY26. The EBITDA margin increased from 23.0% to 23.9% sequentially after reaching 27.0% in Q2 FY26.

What did eClerx Services' management say?

Management maintained FY27 operating EBITDA margin guidance at 24–28%. The CFO initially said H2 capex would be roughly double H1, then corrected this to roughly the same level, with about INR 90 crore in each half. Management said depreciation and amortisation was expected to add about 20 bps of H2 margin pressure as Mumbai and Pune facilities came online, while the statutory PF wage-ceiling revision was expected to reduce H2 margin by 20 bps.

Management retained the goal of matching or exceeding FY26 ACV while acknowledging that H1 was about 10% lower year on year and that matching would be difficult. H1 deal wins fell to US$72m from US$78m, and the company expected Q3–Q4 wins of about US$49–50 million each may be needed. Management said clients remained selective, with tighter budgets and longer decision cycles on AI-led work, and moved the expected BFSI recovery to Q4 FY27 from Q3 as U.S. financial-crime refresh demand weakened.

Management said analytics and automation grew 27% year on year and represented about 20% of revenue, with an annual revenue run rate of about USD 109 million. The company also cited domain-led AI and adjacent-service diversification as growth areas, while noting weak luxury demand in China and Europe. The call also covered client concentration, headcount, utilisation and cash conversion; no separate analyst concerns were recorded.

How did eClerx Services shares react?

After the filing appeared after market hours, the stock was down 7.7% after 5 minutes, 8.1% after 15 minutes and 8.5% after 30 minutes. By the close of the first trading session that could react to the results, it was down 11.6% from the previous close of ₹1,866.5. By the next day’s close, the stock was down 16.7% from that pre-results close.

On the reaction day, the industry median was down 0.5% and the Nifty Smallcap 250 was up 0.7%, leaving eClerx Services 11.1 percentage points below the industry median. By the next day’s close, the industry median was down 2.4% and the market was down 1.3%, while eClerx Services remained 14.3 percentage points below the industry median. Earlier reaction-day moves were mixed, including 14.4% on 14 May 2025, 8.7% on 24 October 2025 and 4.7% on 28 January 2026.