eClerx Delivers Robust Profit Growth on Strong Margin Expansion
The IT services firm reported a 42.9% surge in profit year-on-year, with net profit margin expanding by 300 basis points.
eClerx Services started FY27 on a strong note, with profit surging 42.9% year-on-year. Revenue growth was healthy at 17.6%, while net profit margin expanded significantly.
eClerx Services has kicked off fiscal 2027 with impressive momentum, reporting a sharp 42.9% year-on-year jump in profit. This robust bottom-line growth was supported by healthy revenue expansion and a significant improvement in profitability.
The company's revenue for the quarter ended June 2026 stood at ₹782.11 crore, up 17.6% from the same period last year. More notably, profit grew at more than double that pace, reaching ₹132.78 crore. This acceleration was driven by a 300-basis-point expansion in the net profit margin, which improved to 17.0% from 14.0% in Q1 FY26. Sequentially, both revenue and profit grew modestly, by 2.1% and 2.9% respectively, maintaining the positive trajectory from the previous quarter.
A look at the last five quarters shows a consistent upward trend in both top and bottom lines.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 782.11YoY +18% | 765.98 | 665.08 |
| Profit (₹ Cr) | 132.78YoY +43% | 129.01 | 92.92 |
| Net Profit Margin (%) | 17.0YoY +21% | 16.8 | 14.0 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 16.7%, reflecting sustained profitability.
- The company maintains a strong balance sheet with zero debt and a high return on equity of 24.28%.
- Despite the strong earnings, the stock trades at a P/E of 24.1, a 24.3% premium to the industry average, reflecting investor expectations for continued high performance.
The key challenge for eClerx will be to defend its premium valuation by sustaining this pace of margin-led profit growth in the coming quarters.
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· ECLERX
(BSE)
ISIN: INE738I01010
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