Q1 2026 eClerx Services Limited Earnings Call Transcript
Key Points
- eClerx Services Ltd (BOM:532927) reported a strong Q1 FY26 with operating revenue of $109.2 million, up 4.2% sequentially and 17.1% year-on-year.
- The company saw a significant year-on-year increase in EBITDA, up 25.3%, despite a sequential decline due to annual wage hikes.
- Analytics and Automation segments grew by 6% over the previous quarter, indicating strong demand in these areas.
- The company successfully opened new operations in Lima and plans to launch operations in Cairo in Q2, expanding its global footprint.
- eClerx Services Ltd (BOM:532927) received several awards and recognitions, including being included in the Leaders Quadrant of Financial Crime and Compliance Operation Services Peak Metric Assessment 2025, highlighting its industry leadership.
- EBITDA margin declined by 6.3% sequentially due to annual wage hikes and the impact of new delivery centers.
- The Fashion and Luxury segment continues to underperform, with weakness in the US market, China, and euro appreciation.
- Net operating cash flow was lower than usual due to increased DSO from 80 to 86 days and a large contribution to the gratuity fund.
- The company faces macroeconomic uncertainties, leading to cautious optimism about future growth.
- There is a delay in decision-making from clients, which could impact future growth if it continues.
Good day and welcome to the Q1 FY26 Elys call of eClerx Services. (Event Instructions) Please note that this webinar will be recorded.
To take us through the results and to answer your questions, we have with us the top management of eClerx represented by Kapil Jain, Managing Director and Group CEO; and Srinivasan Nadadhur, Chief Financial Officer. We will start the call with brief opening remark by Kapil; followed by Srinivasan, who will be sharing the financial update; and then open the floor for Q&A session.
As usual, I would like to remind you that anything that is mentioned on this call that gives any outlook for the future or which can be construed as forward-looking statement must be viewed in conjunction with the risks and uncertainties that we face. These risks and uncertainties are included, but not limited to what we have mentioned in the prospector filed with SEBI and subsequent annual reports, which you can find on our website.
Having said that, I will now hand over the floor to Kapil. Over to you, Kapil.
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