eClerx Services Limited has released the transcript of its earnings call held on January 29, 2026, discussing the financial results for the quarter ended December 31, 2025 (Q3 FY26). During the call, Kapil Jain, Managing Director and Group CEO, highlighted a strong quarter with operating revenue of $121.7 million, a 5.4% sequential increase, and INR 10,703 million, up 6.5% sequentially. EBITDA stood at INR 3,075 million (27.9% margin), up 3.1% sequentially, and PAT was INR 1,920 million (17.5% margin), up nearly 5% sequentially. For the first nine months of FY26 (9MFY26), USD operating revenue grew 18.4% YoY to $346.5 million, with INR operating revenue up 22% YoY to INR 30,097 million and PAT up 33% YoY to INR 5,168 million. Deal wins for Q3 were $45 million. The company noted healthy growth in Analytics and Automation, with non-top 10 client growth exceeding top 10 client growth. Top 10 client concentration reduced to 60%. Growth was strong in Hi-tech and M&D, with Fashion and Luxury showing an increase from seasonal lows. Emerging businesses also grew strongly. Srinivasan Nadadhur, Chief Financial Officer, provided further details, stating that constant currency operating revenue increased by 5.5% sequentially and 20% YoY. Total revenue, including other income, was INR 11,703 million, up 6.4% sequentially and 22% YoY. Net operating cash flow was INR 2,536 million, with an EBITDA conversion of 82%. EBITDA margin saw a sequential decline of 90 bps but an increase of 190 bps YoY. The company completed its buyback process in January, extinguishing 625,000 shares, and the Board approved a 1:1 bonus issue, pending shareholder approval. The management expressed optimism about future growth, driven by opportunities in Financial Services, AI projects, and emerging businesses. They also highlighted awards and recognitions, including Gold status in the Adobe Solution Partner Program and recognition as a major contender in Everest Group's Intelligent Process Automation Peak metrics. While acknowledging potential near-term volatility in Q4, the underlying demand remains healthy, and the pipeline is robust. The company plans to continue investing in technology, AI, and sales resources.
