eClerx reports strong Q2 FY26 revenue and margin growth, plans share buyback

eClerx Services Limited reported robust financial results for Q2 FY26, with operating revenue reaching $115.5 million, a 5.7% sequential increase. In INR terms, operating revenue grew 7.5% sequentially to ₹10,049 million. The company's EBITDA for the quarter stood at ₹2,983 million, representing a 28.8% margin and a 27% sequential rise. PAT for the quarter was ₹1,832 million, at a 17.7% margin, up 29% sequentially. For the first half of FY26, USD operating revenue was $225 million, a 17% year-on-year growth.

Deal wins for Q2 amounted to $46 million, with analytics and automation showing a 6% increase. Growth was particularly strong in emerging businesses due to new operations in the F&A subsegment, as well as in CMT and HiTech, while BFSI grew modestly. The company's management remains cautiously optimistic for Q3 and Q4, with an overall margin outlook of 24% to 28% for the year, though Q3 margins are expected to be less strong due to recent INR appreciation.

The Board has approved a share buyback of ₹300 crores, subject to shareholder approval, with promoters and the promoter group not participating. The buyback price of ₹4,500 is a minimum, and the final price will be determined after shareholder approval. This move is part of the company's capital allocation policy to return 50% of cash to shareholders not required for business use.