1. At a Glance
eClerx just posted a decent Q1 FY26 with ₹142 Cr PAT and 24% EBITDA margin—but is the ₹17,900 Cr market cap justified? They serve top global names, but a P/E of 31.5 and 7.8x book means this BPO ain’t running on low-cost labour anymore—it’s billing like a Big 4 consultant.
2. Introduction with Hook
Imagine if Excel became sentient and started charging Fortune 500s $100/hr. That’s eClerx. They clean, crunch, and automate data for some of the biggest brands on Earth—and they charge like they invented pivot tables.
Stat Check:
- 5-Year PAT CAGR = 21%
- Last quarter OPM = 24%
- Book Value = ₹470; CMP = ₹3,659 (so… multiple expansion took steroids)
3. Business Model (WTF Do They Even Do?)
eClerx isn’t your cousin’s call center. They offer:
- Customer Ops: Technical support, digital care, sales enablement
- Financial Ops: Reconciliations, trade processing, regulatory reporting
- Digital: Web analytics, content management, robotic process automation (RPA)
They basically fix corporate messes using armies of analysts and bots. Think McKinsey meets Ctrl+C/Ctrl+V.
4. Financials Overview
Q1 FY26 wasn’t flashy, but it was solid:
| Metric | Q1 FY25 | Q1 FY26 | YoY Growth |
|---|---|---|---|
| Revenue | ₹935 Cr | ₹934.56 Cr | Flat-ish |
| EBITDA | ₹221 Cr | ₹221 Cr | Neutral |
| Net Profit | ₹142 Cr | ₹142 Cr | Stable |
| PAT Margin | 15.2% | 15.2% | Chill |
Margins holding despite flat topline = rare IT magic. But revenue growth stagnation is the elephant in the air-conditioned NOC.
5. Valuation
a) P/E Valuation:
- EPS TTM = ₹116.51
- Fair P/E for BPM = ~25x
- Fair Value = ₹116.51 × 25 = ₹2,913
b) P/B Valuation:
- BV = ₹470
- Fair P/B for asset-light, RoE-rich = 5x
- Fair Value = 470 × 5 = ₹2,350
EduInvesting FV Range: ₹2,350 – ₹2,900
Current CMP = ₹3,659. Verdict? Valuation is more inflated than corporate goal-setting meetings.
6. What’s Cooking – News, Triggers, Drama
- AGM & Final Dividend: Coming Sept 10. Final dividend announced, but let’s not pretend it’s juicy. Dividend Yield = 0.03%. Even UPI rewards are better.
- New Secretarial Auditor: Mehta & Mehta onboarded. Corporate governance flex?
- FIIs Slowly Leaving: FII holding down from 12.6% to 10.1% in 6 quarters.
- Growth Slowing: 16% sales CAGR TTM, but Q-o-Q flattening like a deflated Parle-G.
7. Balance Sheet
| Metric | FY25 | Comment |
|---|---|---|
| Equity Capital | ₹47 Cr | Constant |
| Reserves | ₹2,259 Cr | Retained earnings = strong |
| Debt | ₹358 Cr | Higher than expected, but manageable |
| Total Assets | ₹3,146 Cr | Asset-light as it should be |
Solid BS, but rising debt for a BPM player? Hmm… Either R&D in AI bots or a CFO who believes in EMIs.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹493 | ₹-55 | ₹-440 | ₹-2 |
| FY24 | ₹526 | ₹-483 | ₹-107 | ₹-64 |
| FY25 | ₹655 | ₹130 | ₹-610 | ₹176 |
Phenomenal cash generation, but also phenomenal “let’s not return anything to shareholders” vibes.
9. Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 29.1% | Hella good |
| ROE | 23.8% | Sexy |
| PAT Margin | 15.2% | Healthy for BPM |
| P/E | 31.5x | Pricey |
| D/E | 0.11x | Under control |
If this were Tinder, it would match with “stable but ambitious.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | ₹2,648 | ₹723 | ₹489 |
| FY24 | ₹2,926 | ₹776 | ₹512 |
| FY25 | ₹3,366 | ₹808 | ₹541 |
They’re growing, but slower than your WiFi after 5 PM.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Firstsource | 7,980 | 586 | 41.7x |
| Hinduja Global | 4,404 | -118 | — |
| eClerx Services | 3,519 | 571 | 31.5x |
eClerx makes more profit than Firstsource with half the revenue. That’s margin mastery. But growth tempo = Enya music.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2023 | Jun 2025 |
|---|---|---|
| Promoters | 53.61% | 53.81% |
| FIIs | 12.62% | 10.16% |
| DIIs | 20.89% | 26.04% |
| Public | 11.14% | 8.63% |
Promoters steady. DIIs are vibing. FIIs are ghosting. Retail? Disinterested.
13. EduInvesting Verdict™
eClerx is what happens when a back-office BPO finds a 6-pack of automation, analytics, and ambition. Strong RoE, great cash flow, and sticky clients. But flat growth and valuation multiples stretched tighter than an intern’s budget.
A lovely machine. But don’t expect Formula 1 speed every quarter.
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: eClerx, BPM, BPO, Analytics, EduInvesting Premium
