Growth solid, margins below guide; recovery hinges on H2 delivery

Delivered 4.1% INR sequential growth; management cited USD 2.8% (understating in INR terms)

23% OPM delivered; but PAT down 13.4% QoQ despite revenue +4.1% — margin compression acute

260 bps EBITDA compression Q-o-Q, wage contribution 210 bps; math checks. But 23% is 100 bps below 24% guidance floor

BFSI -0.1% YoY (technically flat); Q4 was -2.8% YoY, so Q1 is an improvement. Trend real but still below zero

Consistent with 2.8% company sequential growth; 7% for segment is credible

Q1 = 23%, 100 bps below range floor. Management banking on post-increment margin recovery, not yet proven

Guidance 24–28%, Q1 delivered 23% — 100 bps below floor. Management attributed to increments (210 bps) + infrastructure (40 bps) + geographic mix (–60 bps S&D offset). Margins expected to recover sequentially once increments done.

Q4 was –2.8% YoY, Q1 is –0.1% YoY — improvement directional. But still not positive. Management now guiding H2FY27 inflection (vs. prior silence on timing).

Analytics +7% sequential (above company average). AI discussions accelerating; agentic solutions rolled into productized services. QA 360 win shows delivery proof-of-concept. Management more vocal on AI ROI timeline (still vague: 'icing on cake' → 20–25% of revenue medium-term ambition unstated).

Fourth consecutive quarter of strong growth; expanding F&A into APAC (mid-market traction). Differentiator vs. softness in M&D, Retail, CMT.

Gradient moving positive; H2FY27 expected to see momentum build and benefits start.

Mix of AI COE, pilots, product enhancements. Tech & Analytics growing 7% (above company). Hard to link X headcount to Y ROI; focus on growth momentum, conversions, and margin 24–28% target.

Quarter-on-quarter variations; billed headcount up; confident on full-year top-quartile growth.

FY26 delivered $170M ACV; aspire to do at least that and grow on it for FY27–28 tailwind. No reasons to not march toward that goal.

Two clients, US, servicing side. Early traction; focus on successful pilots before scaling.

Yes, FX provided ~50 bps Q-o-Q margin benefit. Excluding FX, QoQ impact would have been 330 bps.

No further change from last quarter guidance. CMT Q1–Q4 growth drop (7% to 1.3%) is quarterly aberration, not regulatory.

Not slow; clients implementing technology/AI. FCC work dependent on client refreshes and regulatory environment. Financial services regulatory environment less onerous than 2–3 years back; hence lower refresh demand.

Proprietary QA 360 platform being invested in; partnerships with hyper-scalers; ATR business IP for audit; agent assist. Working with client-led tech platforms. Experimentation and testing role for eClerx.

Depends on growth. FY26 had 5%+ sequential growth; margins improved sharply. FY26 ended at 27% (above midpoint). Now advise midpoint (26%) as reasonable; above that will be difficult.

Clients investing massively in AI, seeking ROI proof. Tech transformation drives scale/consolidation. ROI still unproven; lots of promise but commitments still to materialize. Yes, pricing pressure, but nothing extraordinary vs. business-as-usual.

Mixed feedback; clients reducing non-voice or increasing voice depending on journey. Traditionally eClerx non-voice >> voice; not worried if increases. Comfortable zone between both.

CapEx ~₹130–150 Cr FY27. Three-year depends on Board decisions, finalized in next budget. Revenue: top-quartile growth (vague; peers not all reported yet).

Emerging (F&A) continue; BFSI must turn; CMT, Hi-Tech confident growth; Fashion/Luxury small, modest growth expected.

AI is opportunity; clients need partners understanding business + tech mindset. Billed headcount up despite total headcount down (utilization play). No headcount concern.

Roll-off volatile; generally 15–20% of annual revenue in 4-quarter average. Expect that to hold FY27.

CLX Q2 is soft but H1 vs H1 comparison up YoY. FY27 for CLX expected 0–2% (slight improvement). Roll-off on short-term work not fully predictable.

Quarter-on-quarter volatility; strong directional focus on growing outside top 10 to reduce concentration. Confident in higher growth outside top 10 going forward.

Communication, network infrastructure, facility buildout (G&A). Trend expected to persist; equipment more expensive. CapEx elevated this quarter; OpEx also higher. Should see normalization as revenue grows.

Discussions on AI-led deals (SEC, transaction monitoring, fraud, retail mortgages). Momentum higher than 2–3 quarters prior. Deal sizes small; 'icing on cake.' Can it be 25–30% in 12–18 months? Don't know; but leads to higher conversions and mind share.

Good momentum in capability areas; expanded geographies with traction; adjacent areas (mortgages, wealth); F&A moving mid-market. No fundamental shift required; continue investing in sales, delivery, tech/AI.

Focus on large deals; industry recognition helping. $40M–$41M Q1; aspire >$170M full year (vs. $170M FY26). Substantial YoY growth. Thesis still holds.

Want to stay in 24–28% range. Pivot to tech/analytics (growing faster, being invested in). If can get 30–40% revenue from tech/analytics despite competitive pressure, should hold margins in range.

Q4 –2.8% YoY to Q1 –0.1% YoY; gradient positive. With pipeline momentum and conversions, confident to turn around H2FY27.

Both. CX in FS, MarTech in CMT, Compliance Manager examples. Service kit relevant across segments. Need to win new logos, grow outside top 10, increase wallet in top 10, cross-sell across service lines & locations.

Yes, absolutely. Analyst recognition bringing inbound leads. Seeing increase in deal size. Thesis holds; confident in larger deals.

Industry-leading growth = organic focus. Open to acquisitions if timing, capability, synergy, culture, price align. Nothing to announce now; constantly looking.

Based on 23.3% YoY Q1 delivery and 'top-quartile' claim; some peers not yet reported. Management reiterating but not quantifying full-year revenue target explicitly.

Q1 +4.1% QoQ achieved; management confident on Q2 sequential growth. Depends on BFSI recovery and no macro stall.

Q1 delivered 23%, 100 bps below floor. Management confident margin recovery post-increment; claims no reasons for doubt. But new center ramp (lower margins) and G&A inflation (networking, compute) are ongoing drags.

Post-Q1 increments, wage cost absorption easier. Revenue growth should flow through; but depends on commodity cost (network, equipment) not inflating further and mix not worsening.

New facility buildout (India centers: Mumbai, Pune, Chandigarh, Mohali, Coimbatore) + 1,600 seat additions over 3–4 months. Depreciation/interest costs rising Q1 due to new asset base.

BFSI segment flat/negative for 2 quarters; material segment for eClerx. Other peers reporting strong BFSI growth; eClerx lagging. Recovery guided for H2FY27 but unproven.

New centers (Cairo, Lima, Manila) operate at 'lower gross margin than India.' Headcount doubled in Manila (15 months); revenue mix shift has 'downside on margin.' Q1 EBITDA 23% already 100 bps below 24–28% guidance.

Management notes 'macroeconomic environment remains mixed'; clients 'continue to be selective in their spending.' M&D and Retail weak (supply chain challenges from Middle East conflict). CMT volatility (7% to 1.3% QoQ). Fashion/Luxury small and soft. Sequential growth guidance at risk if macro stalls.

Q1 wage increments accounted for 210 bps EBITDA margin compression. G&A costs (networking, compute, infrastructure) rising. Management expects margin recovery post-Q1 but ongoing capex depreciation and facility costs will continue to pressure margins.

eClerx investing heavily in AI COE, pilots, agentic solutions, but ROI and conversion to large revenue still nascent. Management admits 'deal sizes in AI relatively small' and role is 'icing on cake.' Risk that AI investments don't convert to outsized returns.