eClerx Q3 Profit Jumps 39% to ₹191 Crore, Announces Bonus Issue

Introduction

eClerx Services Ltd, a global provider of business process management (BPM) and analytics services, announced a robust financial performance for the third quarter of fiscal year 2026. The company reported a significant 39.4% year-on-year increase in its consolidated net profit, driven by strong client demand and improved operational efficiencies. Alongside the strong earnings report, the company's board has approved a 1:1 bonus issue, rewarding its shareholders.

Stellar Q3 Financial Performance

For the quarter ending December 31, 2025, eClerx posted a consolidated net profit (PAT) of ₹191 crore, a substantial rise from the ₹137 crore recorded in the same period of the previous fiscal year. This growth was supported by a healthy increase in revenue from operations, which grew by 25.3% year-on-year to reach ₹1,070 crore, compared to ₹853.8 crore in Q3 FY25. The company's total income for the quarter stood at ₹1,100.4 crore, up from ₹874.3 crore a year earlier. On a sequential basis, the company maintained its growth momentum, with net profit improving from ₹183 crore and total income rising from ₹1,032 crore in the preceding quarter (Q2 FY26).

Operational Efficiency and Margin Expansion

A key highlight of the quarter was the improvement in profitability margins. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a 33.3% year-on-year increase to ₹276.1 crore from ₹207 crore. Consequently, the EBITDA margin expanded by 150 basis points to 25.8%, up from 24.3% in the corresponding quarter last year. The company attributed this margin enhancement to tighter cost controls and higher productivity across its operations. Total expenses for the quarter were ₹850.3 crore, with employee benefits expense being the largest component at ₹654 crore, reflecting the people-intensive nature of the BPM industry.

Nine-Month Performance Overview

The strong performance in the third quarter contributed to a healthy financial standing for the first nine months of FY26. For the period ended December 2025, eClerx reported a consolidated net profit of ₹516.8 crore, a significant increase from ₹388.7 crore in the same period of the previous year. Total income for the nine-month period rose to ₹3,081.1 crore from ₹2,522.1 crore year-on-year, underscoring sustained business growth throughout the fiscal year.

Bonus Issue Announcement

In a move to reward its investors, the Board of Directors approved a bonus issue of equity shares in the ratio of 1:1. This means that eligible shareholders will receive one new bonus equity share for every one existing equity share they hold on the record date. Following the bonus issue, the company's issued and paid-up equity share capital will double from ₹47.03 crore to ₹94.05 crore. The company will utilize ₹47.03 crore from its retained earnings, which stood at ₹1,377.72 crore as of March 31, 2025, to fund the bonus issue.

Market Reaction and Company Profile

The market responded positively but modestly to the strong earnings and bonus announcement. Shares of eClerx Services ended the trading day 0.7% higher at ₹4,444 on the National Stock Exchange (NSE). eClerx is a prominent player in the knowledge process outsourcing (KPO) sector, providing data analytics, automation, and change management services to Fortune 500 clients across industries like financial services, retail, media, and high-tech.

Analysis and Outlook

The Q3 results demonstrate eClerx's ability to capitalize on growing demand for digital and data-led services. The consistent double-digit revenue growth, coupled with margin expansion, indicates strong execution and a favorable operating environment. The bonus issue, following a ₹300 crore share buyback announced in the previous quarter, signals strong confidence from the management in the company's financial health and future prospects. This focus on shareholder returns, backed by robust operational performance, positions the company well.

Conclusion

eClerx Services has delivered a commendable performance in Q3 FY26, marked by strong growth in both revenue and profitability. The expansion of operating margins highlights the company's focus on efficiency. The announcement of a 1:1 bonus issue is a significant positive for shareholders, reflecting the company's solid financial position and commitment to sharing its success. With sustained momentum and a healthy business pipeline, eClerx appears well-positioned to continue its growth trajectory in the evolving BPM landscape.