Revenue growth masks PAT decline; AI strategy validated but conversion uncertain

Revenue ₹601.7 Cr (30.2% YoY), EBITDA 20.1% (at prior guidance baseline). Reported PAT ₹55.6 Cr down 26.7% YoY.

Adjusted net profit ₹62.9 Cr up 35.4%; reported net profit ₹55.6 Cr down 26.7%. Gap due to ₹18 Cr one-time FX hedging gain in Q1.

Q2 revenue ₹601.7 Cr vs Q1 ₹574.8 Cr = 4.7% QoQ in INR, 1.2% in USD. YoY basis shows 18% (vs ₹462 Cr in Q2 FY26).

TTM ACV ₹82.9M (vs ₹82.3M in Q1). Bookings essentially flat QoQ, not growing.

QoQ revenue growth 4.7% in INR; constant-currency growth remains in 2-3% range. Management acknowledged target is 3-4%.

AI-accelerated wins now larger share of bookings; 5 named large deals closed (telecom, fintech, insurance, ad-tech). Average deal size and duration increasing YoY.

Constant-currency growth remains ~2%, vs prior stated confidence in 3-4% range. Management attributed to macro uncertainty and deal-decision delays but offered no new catalyst timeline.

TTM ACV $82.9M vs $82.3M in Q1 (up $0.6M); vs prior call's $82.5M guide (beat by $0.4M). QoQ virtually flat; not the 'handsome increase' seen in Q1.

Deliberate spend increase: SG&A ₹115.3 Cr (Q2) vs ₹91.4 Cr (Q1). Chief Revenue Officer hired, AI/domain experts added to sales. New EXIQO brand and GCC Accelerator recognition (HFS report).

20.1% adjusted EBITDA dependent on favorable FX. Management guided 18-19% sustainable range, explicitly acknowledging rupee depreciation tailwind. Normalized margin likely 100-200 bps lower.

Deliberate increase: CRO hire, more sales bandwidth, AI and domain expert engagement in sales process, new brand identity launch, EXIQO AI studio marketing, conference participation. Will continue investing to reach market with differentiation.

No guidance provided. Trailing 12-month bookings are indication of confidence. Lag effect: bookings from last half become revenue this half. Current investments will drive future wins. Market uncertainty present but confidence in momentum.

No explicit percentage disclosed. GCC continues as growth vector with wins showing AI impact and innovation. Provides engagement with large clients and establishes AI differentiation.

Revenue mix shifted positively: more data, AI, cloud work in strategic spend areas, not legacy fills. Increased channel play (PE, hyperscalers). More revenue per employee and margin per employee. Annuity still low (project-based business); agentic business ops emerging as sustainable offering path.

Organic growth is consistent QoQ; wins exceed closures. Deal sizes and durations increased. 18% YoY revenue growth without headcount shows quality improvement. AI adoption wave will enable wallet share gains. No concern on acceleration.

ACV/growth not influenced by acquisition vs organic split; both play in tandem. Novigo facing geopolitical challenges in Middle East but showing strong deal wins across markets. Continuing to increase traction.

Wage hike implemented in Q2 (biannual cycle). Margin improvement from: (1) revenue mix (18% YoY growth, no headcount increase = revenue per employee up); (2) forex (cannot be taken for granted). Guided to stay at 18-19% adjusted EBITDA sustainable, reinvesting above that in AI and marketing.

Neither decisively; standard factor is delay in decision cycles. TTM wins show continued strength. Q2 last year had large deals; this year also had large deals filling that gap. Deal sizes promising; optimistic on deal-win and growth scenario.

Million-dollar question. Quality of pipeline better, average deal sizes better, customer work better. Focused on turning pipeline into revenue. Positioning and market recognition improving; conversion pending.

Don't share explicit percentage but significant and growing. As an organization, revenue numbers have crossed 50% and continues to go up. Happy and focused on it.

Won't say seasonality; still project-based, discretionary spend. Not maintain/sustain, but transformation/innovation-led. Project life cycles present but driven by transformation waves, not seasonal effects.

No significant headcount increase YoY. Revenue increase without cost increase shows productivity gains from AI/AI-led delivery. EXIQO AI Studio delivers 2x productivity and 55% turnaround time gains. Optima AI platform reflects these gains.

Seeing accelerating revenue velocity and margin velocity. Will it reflect this year is difficult; must become significant % of revenue. Near term likely based on market adoption of AI-first delivery and compounding effect on revenue/margin per employee.

Biggest factor is decision cycles and deal delays. With pipeline buildup, reusable assets, and repeat AI transformation stories, only matter of time. Focus on converting pipeline to revenue.

Increased via dedicated mining efforts by go-to-market leaders. Main themes: AI-led modernization (legacy migration), AI business ops in BFSI (banking/insurance), process understanding in regulated environments. Growing wallet share significantly in BFSI.

Novigo gave boost post-integration. Organic growth engine continued; both entities growing in tandem. Novigo accelerated agentic business ops (enterprise RPA, low-code, no-code → agentic AI operations) in insurance, banking, travel. Inorganic +organic growth thesis; opportunistically looking for accretive acquisitions with differentiated capability, margin accretion.

Domain-intensive and tech-intensive. Deepening domain capabilities on solutioning/delivery side; increasing domain and technical expertise in go-to-market teams. No longer enough for pure sales; need technical/domain-led discussions from first contact. Leveraging ecosystem partners for innovation and differentiation.

Talk of AI deflation; we talk of AI monetization. Difference: we don't have multi-year renewals where customers expect AI productivity gains (would cause deflation). AI productivity is inbuilt in AI-first delivery; already bid into wins. Project revenue won doesn't have deflationary pressure. Average productivity/revenue productivity up; margins improving due to AI premium pricing.

Management stated target but no quantified FY27 revenue guide. Lag effect: H1 wins→H2 revenue. Pipeline quality improving; conversion remains key.

Explicitly guided. Current 20.1% includes FX tailwind (rupee depreciation). Wage hikes, AI/sales investment will pressure margins.

CC growth at ~2% vs 3-4% target. Management attributes to deal-decision delays, macro uncertainty. Pipeline quality improving but conversion timing uncertain. Miss on this would signal strategy execution gap.

20.1% adjusted EBITDA includes material rupee depreciation tailwind. Management explicitly guided sustainable margin to 18-19%, implying 100-200 bps of benefit from FX. Normalized operating performance weaker than reported.

Adjusted net profit ₹62.9 Cr vs reported ₹55.6 Cr (-11.6% gap). Management highlighting adjusted figures; analysts may view this as selective communication. RSU and FX hedging reserve impacts material.

While management claims consistent organic QoQ growth, constant-currency growth is muted at ~2%. Analyst Ashis Das flagged this as 'very muted' despite organizational changes. Bridging to 3-4% target unclear.

Large deal wins announced but bookings (ACV) flat QoQ at $82.9M. Management relies on 'lag effect' (H1 wins → H2 revenue) but this hasn't materialized in Q2 bookings. Conversion timing uncertain.