eClerx Services Limited (ECLERX) has reported its financial performance for Q1 FY27, revealing a 23.8% year-on-year revenue growth to INR 11,702 million. Despite the positive revenue trend, the company experienced a decline in its profit margins. The operating profit margin stood at 20.0%, down from 23.1% in Q4 FY26. This dip is primarily attributed to an increase in cost of revenues and general and administrative expenses. Notably, the company proposed a dividend of INR 1 per share for FY27.

Revenue and Profit Breakdown

The company’s total revenue for Q1 FY27 was INR 11,702 million, marking a 3.1% sequential increase from Q4 FY26. The operating profit (EBIT) was INR 2,335 million, reflecting an 11.0% year-on-year decline. The profit after tax (PAT) was INR 1,643 million, down 13.2% compared to the same period last year. The decline in profitability is also evident in the margin percentages, where the EBITDA margin dropped to 23.0% from 25.7% in Q4 FY26.

Geographic and Client Concentration

Geographically, North America continues to be the largest contributor, accounting for 78% of the total revenue. Europe and Rest of World (ROW) contributed 16% and 6% respectively. In terms of client concentration, the top 10 clients contributed 62% of the total revenue, indicating a healthy client base diversification. The billing mix remained stable with BPaaS and Onshore Revenue contributing 19% and 18% respectively.

Looking ahead, eClerx Services Limited remains optimistic about its growth trajectory, focusing on expanding its service offerings and client base. The company’s strategic initiatives and operational efficiencies are expected to drive future performance.

Source: NSE Corporate Announcement

Fundamental & Technical Analysis of eClerx Services Limited

eClerx Services Limited belongs to the Technology › Information Technology Services sector. Here’s a quick read on where the business and the stock stand today.

eClerx rises 20.3% over three months, with buying pressure holding steady. Not a single revenue dip or loss quarter in five years — this is a business built to last through cycles. The business compounds revenue at 15.8% and profits at 13.0% CAGR. That is strong double-digit growth on both counts. Buyers show up with 1.5x the volume of sellers. Moreover, they dominated on 18 of recent sessions versus 12 for sellers — a healthy accumulation pattern. The business grows revenue at 15.8% and profits at 13.0%, with D/E of 0.16. The stock reflects that strength. Moreover, when fundamentals and price action align, the PEG of 1.98 premium is usually justified. Check Fundamentals of eClerx Services Limited.

eClerx Services Limited (ECLERX) breaks out with a +5% gain today, clearing its 6-month resistance trendline. The stock’s surge is driven by strong technical momentum, as it has now moved 25.3% above the key resistance level of ₹1429. In the tech sector, ECLERX specializes in digital transformation and analytics, and today’s move appears to be company-specific rather than a sector-wide trend.

Technical setup — trendlines & DMA

From a chart perspective, ECLERX has established a new support floor at ₹1233.4, which is now 35.51% below today’s price, indicating a robust upward move. The stock has decisively broken above the 6-month resistance trendline ending at ₹1428.98, signaling a potential change in trend. The 50-DMA at ₹1531.8 is currently below the 200-DMA at ₹1848.1, typically a bearish signal, but the stock’s 18.27% gain above the 50-DMA suggests it is in an extended phase. ECLERX is trading in the middle third of its 52-week range, which implies there is still room for further upside if the breakout sustains.

Fundamentals & business context

With a PE of 24.3, ECLERX’s valuation reflects its solid profit margin of 17.2% and a robust revenue CAGR of 15.8% over the past five years. This suggests that the market is pricing in the company’s growth potential, though the valuation appears reasonable given its consistent performance. Institutional ownership stands at 32.4%, indicating a level of confidence from sophisticated investors. There was no NSE catalyst today, so the move is purely technical.

Algorithmic scorecard

The overall scorecard reflects a balanced view, with a slight edge towards fundamental strength. The two strongest signals are the revenue CAGR of 15.8%, indicating very good growth, and the perfect record of consistent revenue growth every year, showcasing exceptional business stability. On the flip side, the negligible dividend yield of 0.03% represents a weak income signal, and the bearish trend indicated by the 50-DMA being below the 200-DMA suggests near-term technical weakness. These contrasting signals highlight the stock’s potential for growth alongside some inherent risks.

Company outlook

Management outlined an optimistic forward guidance for Q1 FY ’27, expecting it to be stronger sequentially than Q4 FY ’26. They aim to be in the top quartile of growth for FY ’27 and are maintaining EBITDA margin guidance between 24% to 28% for the same fiscal year. The company aspires to show year-on-year growth in deal bookings. Key initiatives include planned deployments of Agentic AI starting in Q1 FY ’27, training over 3,000 employees on Agentic AI and vibe coding, and focusing on tech and analytics as growth drivers for FY ’27 and FY ’28.

Get all details on ECLERX — P&L, peers, shareholding and more on TradeAlone.

eClerx Services Limited (ECLERX) pulled back from breakout highs, falling -5% intraday on the NSE today. This retracement follows the stock’s breakout above the 6-month resistance level of ₹1423.01, marking a significant structural shift from a bounce from support to a breakout status. Today’s decline appears to be a case of profit-taking after the breakout, rather than a fresh breakout attempt. In the broader technology sector, ECLERX’s move is somewhat isolated, with the company showing stronger momentum compared to its peers.

Technical setup — trendlines & DMA

From a technical perspective, ECLERX has established a new support floor at the 6-month trendline of ₹1233.4, which is now 29.60% below the current price. The recent breakout above the 6-month resistance at ₹1423.01 has been confirmed, with the stock currently trading 18.78% above this level. The 50-DMA stands at ₹1516.8, indicating that the stock is 22.73% above this moving average, suggesting an extended move. Meanwhile, the 200-DMA at ₹1850.3 is just 0.61% above the current price, highlighting a narrow gap between the short-term and long-term moving averages. ECLERX is currently trading in the middle third of its 52-week range, which spans from ₹1320.0 to ₹2497.5, implying that a substantial portion of the move is already priced in.

Fundamentals & business context

On the fundamental front, ECLERX’s PE of 25.0, coupled with a profit margin of 17.2% and a revenue CAGR of 15.8%, suggests that the market is pricing in robust growth expectations. The company’s consistent revenue growth over the past five years, with a CAGR of 15.8%, underscores its stable business model. Institutional ownership stands at 32.4%, indicating a level of confidence from sophisticated investors. There were no new NSE filings or catalysts today, making today’s move primarily technical in nature.

Algorithmic scorecard

The algorithmic scorecard for ECLERX reflects a balanced view, with a strong technical setup but some fundamental concerns. The breakout above resistance levels and the stock’s position above both the 50-DMA and 200-DMA indicate a technically strong position. Additionally, the bullish sentiment over the last 30 days, with 20 up days versus 10 down days, suggests systematic accumulation. However, the stock’s PEG ratio of 1.92, while reasonable, and the negligible dividend yield of 0.03% highlight areas of caution. The low debt levels and strong promoter/institutional control are positives, but the mixed momentum and inconsistent price growth over different time frames present risks that investors should monitor.

Company outlook

Management’s outlook for ECLERX is optimistic, with expectations for stronger sequential growth in Q1 FY ’27 compared to Q4 FY ’26. The company aims to be in the top quartile of growth for FY ’27, with EBITDA margin guidance maintained between 24% to 28%. ECLERX is also aspiring to show year-on-year growth in deal bookings for FY ’27. On the strategic front, the company plans to deploy Agentic AI in Q1 FY ’27 and train more than 3,000 employees on Agentic AI and vibe coding. The focus on technology and analytics is expected to drive growth for both FY ’27 and FY ’28.

Get all details on ECLERX — P&L, peers, shareholding and more on TradeAlone.