1. At a Glance – The “Silent Assassin” of Indian IT
Let’s get this straight: while flashy IT majors are busy giving PowerPoint guidance and vibe-checking GenAI buzzwords, eClerx is quietly stuffing cash into the bank and casually announcing buybacks + bonus shares like it’s Diwali every quarter.
Market cap is hovering around ₹22,000 Cr, CMP ~₹4,620, and this thing has delivered 40%+ YoY quarterly profit growth in Q3 FY26. Quarterly revenue came in at ₹10,703 mn, PAT at ₹1,918 mn, and operating margins stayed rock-solid around 26% — right in management’s guided comfort zone of 24–28%.
Three-month returns? Meh. One-year returns? 41%. Five-year CAGR? 46%. This is the kind of stock that ignores short-term tantrums and compounds while you’re busy doom-scrolling.
Debt is low (₹395 Cr), ROCE is a juicy 28%, ROE 22.8%, and promoter holding has increased to 54.53%. When promoters buy, buybacks happen, and bonuses rain — that’s not coincidence, that’s confidence.
So the big question: is eClerx just another expensive mid-cap IT stock, or a structurally underrated cash machine wearing a boring suit?
2. Introduction – The Anti-Hype Compounder
eClerx is what happens when an IIT topper skips Instagram, avoids crypto Twitter, and builds a brutally efficient services business instead. Incorporated in 2000, the company sits at the intersection of BPM, analytics, automation, and financial market operations — basically the stuff global enterprises cannot mess up.
This is not staff-augmentation IT. This is mission-critical process ownership. Settlement breaks? Trade lifecycle issues? Digital commerce analytics? If it breaks at 2 a.m. in New York, eClerx gets the call — not your friendly neighbourhood IT giant.
What makes eClerx interesting in FY26 is timing. The global macro is messy, discretionary tech spends are cautious, yet eClerx posted 25%+ YoY
revenue growth and 40%+ profit growth in Q3. That’s not normal IT behaviour — that’s operational leverage kicking in hard.
Add to that:
- A completed ₹3,000 mn buyback
- A 1:1 bonus issue approved
- Margin guidance reaffirmed
- Sales engine restructuring underway
This is not a sleepy back-office firm anymore. It’s a mature cash-rich operator preparing for the next growth leg — but without sacrificing margins.
3. Business Model – WTF Do They Even Do?
Explaining eClerx to a lazy but smart investor goes like this:
“They run the messy, high-value processes that global companies don’t trust interns or generic IT vendors with.”
a) Customer Operations
This is analytics-driven customer lifecycle management — sales support, retention analytics, automation, and technical operations. Think fewer call-centre scripts, more data-driven decision engines. This vertical benefits directly from automation and AI without killing billables.
b) Digital
Creative production, e-commerce operations, web analytics, and performance insights. Fashion, retail, media — all need pixel-perfect execution and data interpretation. This segment rides digital commerce growth, not enterprise IT budgets.
c) Financial Markets
The crown jewel. Trade lifecycle, clearing, settlements, asset servicing, data analytics — basically plumbing of global finance. Sticky clients, high switching costs, and compliance-heavy workflows. Translation: annuity-like revenues with fat
