Synopsis: A small-cap IT services firm closes FY26 with double-digit revenue and profit growth, sweetening the deal for investors with a bonus issue and dividend announcement.
The Indian IT sector’s small-cap segment has been under close watch as companies report their March quarter numbers. One business process management firm just delivered a strong set of annual results, combining revenue growth of over 22%, a 30% jump in net profit, a 1:1 bonus share issue, and a dividend – all in one quarter.
With a market cap of Rs. 13,975 Crore, the shares of eClerx Services Ltd. are trading at a price of Rs. 1,486 per share i.e. 3% down from its previous closing price of Rs. 1531. It currently trades at P/E of 19.7.
Strong Revenue Growth Across FY26
The company closed FY26 with total revenue of ₹4,217.4 crore, up 22.6% from the previous year. Operating revenue in rupee terms rose 22.3% to ₹4,117 crore, while in dollar terms, it grew 17.9% to $468.9 million. For the March quarter alone, total revenue came in at ₹1,135.4 crore, a 23.9% increase year-on-year. Quarterly operating revenue in USD stood at $122.4 million, up 16.8% over the same period last year. On a constant currency basis, full-year growth came in at 17%, with the March quarter showing a modest sequential uptick of 0.5%.
Profits Rise Even Faster Than Revenue
Profit after tax for the full year reached ₹706.2 crore, a 30.5% jump over FY25’s ₹541.1 crore. For Q4, net profit stood at ₹189.4 crore. Full-year EBITDA came in at ₹1,152.6 crore, up 28.8% year-on-year, with an EBITDA margin of 27.3% – an improvement of 132 basis points over the previous year. The net profit margin for FY26 held at 16.7%, up 101 basis points year-on-year. Basic EPS for FY26 stood at ₹76.23, compared to ₹57.10 in FY25, adjusted for the bonus issue.
Bonus Shares and Dividend Announced
The company issued bonus shares on a 1:1 basis during Q4 FY26, doubling the share count for existing investors. Alongside this, a dividend of ₹1 per share i.e. 10% of the face value has been proposed for FY26. Wage increments are set to kick in from April 1, 2026.
Deal Wins and Client Base Expansion
New deal wins continued to accelerate through FY26. The annual contract value of new deals, excluding the CLX business, reached $169.9 million in FY26 – up from $137.4 million in FY25 and $91 million in FY24. In Q4 FY26 alone, new deal ACV stood at $46.1 million. The client base also strengthened, with clients billing over $3 million annually growing from 18 in Q4 FY25 to 24 in Q4 FY26. The top 10 clients contributed 59% of revenue in Q4.
BFSI Leads, but Emerging Verticals Gain Ground
Banking and financial services remained the largest revenue contributor in FY26, accounting for 40.8% of total revenue for the year. Cable, media and telecom followed at 25.7%, while hi-tech and manufacturing contributed 16.5%. Fashion, luxury and retail made up 8.6% of revenue. The standout shift during the year was in the emerging verticals segment, which grew its share from 5.2% in FY25 to 8.4% in FY26.
In Q4 FY26 alone, emerging verticals accounted for 10.2% of quarterly revenue – the highest in recent quarters. Geographically, North America remained dominant at 78% of Q4 revenue, with Europe contributing 17% and the rest of the world at 5%.
About the Company
eClerx provides AI-powered analytics, digital operations services, automation, and business process management to help clients unlock growth and drive business outcomes. eClerx partners with Fortune 500 enterprises across financial services, telecom, media & entertainment, luxury, retail & fashion, and manufacturing. A publicly listed company, eClerx operates across 17 countries with over 22,600 employees, serving clients globally across the Americas, APAC, and EMEA.
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