Opening Hook

When your competitors are crying about GenAI eating their lunch, eClerx is busy turning it into a three-course meal. Despite macro jitters and delayed client decisions, the company posted strong revenue growth, expanding its AI arsenal and delivery footprint while casually mentioning a buyback “might happen.” Investors, take note: this is not your average BPM player anymore.

Here’s what we decoded from this very caffeinated earnings call.

At a Glance

• Revenue: USD 109.2M (₹9,346 Cr) – Up 4% QoQ, 19.5% YoY.
• EBITDA Margin: 24.8% – Wage hikes took a nibble but still healthy.
• PAT: ₹1,417 Cr – Up 27% YoY because why not.
• Deal Wins: $32M – Pipeline remains juicy.
• Attrition: 18% – Employees stayed, mostly.
• Guidance: 24–28% margin, sequential growth in Q2.

The Story So Far

eClerx has been on a dream run, delivering consistent growth over eight quarters. While IT peers struggled, eClerx thrived by focusing on BFSI, CMT, analytics, and automation. The company’s AI-first push (think GenAI, Agentic AI, and low-code/no-code magic) is winning clients. With two new centers in Cairo and Lima and 8,000 employees trained in GenAI, the future looks like a sci-fi success story.

Management’s Key Commentary

1. On Growth: “Pipeline is robust, Q2 will be sequentially better.” – Translation: Don’t worry, we got this.
2. On Margins: “Guidance stays at 24–28%.” – Translation: AI savings + smart hiring = safe margins.
3. On GenAI: “We’re embedding it everywhere.” – Translation: It’s our secret weapon.
4. On Europe: “Flat, currency hit us.” – Translation: Blame forex, not us.
5. On M&A: “Looking, but only for the right fit.” – Translation: No shopping spree unless it’s Gucci.
6. On Buyback/Bonus: “Board will decide.” – Translation: Stay tuned, retail folks.
7. On Risks: “Infinite outcomes, we focus on what we control.” – Translation: Classic CEO zen mode.

Numbers Decoded – What the Financials Whisper

Analyst Questions That Spilled the Tea

• Q: Any buyback soon?
  Mgmt: “Possible.”
  Translation: Keep your hopes alive.
• Q: Will AI eat your margins?
  Mgmt: “We use AI to make margins fatter.”
  Translation: We’re the ones doing the eating.
• Q: GCC strategy?
  Mgmt: “Dedicated team, moving up the value chain.”
  Translation: No fear of in-sourcing.
• Q: What can go wrong?
  Mgmt: “Infinite things, but we’re chill.”
  Translation: They’re confident.

Guidance & Outlook – Crystal Ball Section

eClerx expects sequential growth in Q2, strong ACV for FY26, and margin maintenance despite new center costs. AI adoption and cross-selling will drive growth, while macro headwinds keep management “cautiously optimistic.”

Risks & Red Flags

• Macro Uncertainty – clients delaying decisions.
• Fashion & Luxury Weakness – remains a drag.
• FX Fluctuations – euro depreciation hurts optics.
• Integration Risk – new centers take time to break even.

Market Reaction & Investor Sentiment

The Street loved the revenue growth and AI story but is watching cash flow conversion (DSO rose to 86 days). Investors are also waiting for clarity on buyback and bonus shares.

EduInvesting Take – Our No-BS Analysis

eClerx is playing the long game – investing in AI, scaling delivery, and expanding capabilities while still printing margins IT companies envy. Risks exist, but the company’s strategy of combining tech, domain, and process expertise positions it well to weather storms. For now, it’s a “buy on dips, hold with confidence” type of story.

Conclusion – The Final Roast

eClerx’s Q1FY26 call was part tech talk, part confidence show, and part “wait and watch” on macro. If management keeps delivering like this, investors might start asking not if growth will exceed 20%, but when.

Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.

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