ECLERX Q2 FY27 Results Analysis: Revenue Jumps 18%, PAT Slips 1.5%

Cofacto Research Published October 29, 2026 2 min read

Positive

ECLERX's Q2 FY27 numbers came in strong, with revenue of Rs. 1,188.66 Cr (+18.29% YoY) and PAT growth of -1.53% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 28, 2026
Quarter	Q2 FY 2026-2027
Revenue (Q2)	Rs. 1,188.66 Cr (+18.29% YoY)
PAT (Q2)	Rs. 180.39 Cr (-1.53% YoY)
EBITDA margin	25.39% (-343 bps YoY)
EPS (Q2)	Rs. 19.63 (+0.67% YoY)
Market cap	Rs. 15,621.80 Cr
CMP	Rs. 1,661.00

Quarter Snapshot

eClerx delivered 18.29% YoY revenue growth with EBITDA margin recovering 120 bps QoQ to 25.39%, back within management's 24-28% band, and sequential EBITDA/PAT growth restored as guided. Consolidated PAT still fell 1.53% YoY due to the absorbed wage-increment layer, higher D&A/finance costs from the seat expansion, and a 69.35% YoY sub-contractor cost rise, while OPG margin at 23.88% remains below the guidance band's lower bound. Cash conversion (CFO 1.09x PAT) and a net-cash balance sheet remain solid, with the DSO build to ~81 days the one soft spot.

Key Investment Insights

Key Positives

Revenue grew 18.29% YoY to Rs.1,188.66 cr (+3.15% QoQ); H1 revenue Rs.2,341.02 cr, +20.71% YoY
EBITDA margin recovered 120 bps QoQ to 25.39%, back within management's 24-28% guidance band; OPG margin +86 bps to 23.88%
Sequential EBITDA (+8.75%) and PAT (+9.96%) growth restored after Q1's wage-hike break; EPS +9.91% QoQ to Rs.19.63
Employee costs rose only 1.69% QoQ vs revenue +3.15%, showing the increment drag was absorbed in Q1
H1 CFO of Rs.376.75 cr was 1.09x PAT; FCF of Rs.272.80 cr
Net liquid position of ~Rs.651.15 cr after lease liabilities; total equity up 13.81% in H1
Standalone PAT grew 22.76% YoY to Rs.135.18 cr; ETR fell ~136 bps YoY to 23.76%

Risk Factors

Consolidated owners' PAT declined 1.53% YoY against 18.29% revenue growth; EBITDA margin compressed 343 bps YoY (OPG −278 bps)
OPG EBITDA margin of 23.88% remains below the lower bound of the 24-28% guidance band
Sub-contractor costs rose 69.35% YoY; four foreign subsidiaries posted a Q2 loss of Rs.35.67 mn
DSO proxy rose to ~81.01 days from ~79.22, a receivables build instead of the normal Q2 unwind
D&A +31.34% YoY and finance costs +40.57% YoY from the ~1,600-seat capacity addition