eClerx Services Limited (ECLERX) AI Stock Analysis

• Market Cap: ₹146.36B
• Dividend Yield: 0.02%
• Average Volume (3M): 4.00K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.36
• Revenue Growth: 17.83%
• EPS Growth: 20.34%
• Country: IN
• Employees: 14,191
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 40.20
• Shares Outstanding: 47,025,360
• 10 Day Avg. Volume: 2,318
• 30 Day Avg. Volume: 3,997
• PEG Ratio: 3.23
• Price to Book (P/B): 5.73
• Price to Sales (P/S): 3.93
• P/FCF Ratio: 24.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 155.52
• Revenue Forecast (FY): ₹41.23B

• Rating: 69 Neutral
• Price Target: ₹3,475.00 ▼(-27.20% Downside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

The score is primarily supported by strong financial performance (growth, healthy margins, and solid cash generation). This is meaningfully offset by very weak technicals (price below major moving averages and negative MACD with extremely low RSI/Stochastic). Valuation is moderate with a supportive dividend yield.

Positive Factors

Revenue Growth

Double-digit revenue growth combined with a business model of recurring, multi-period service contracts and managed services supports durable top-line visibility. Recurring FTE/hourly and fixed-fee arrangements improve predictability of cash flows and reduce short-term volatility.

Margin Strength

Robust gross profit and healthy EBIT/EBITDA margins reflect efficient cost management and pricing power. The ability to deliver higher-value analytics and transformation work that commands premium fees supports long-term margin sustainability versus commoditized process work.

Cash Generation & Balance Sheet

A strong equity position and low leverage, together with impressive free cash flow growth and efficient cash conversion, provide financial flexibility. Reliable cash generation supports reinvestment in automation, client projects and cushions the business through sector cycles.

Negative Factors

EBITDA Margin Erosion

A small decline in EBITDA margin year-over-year signals emerging pressure on operating efficiency or pricing. If the trend persists it could compress free cash flow and limit investment capacity, requiring sustained cost controls or higher-value service mix to reverse the trend.

Rising Debt

Although leverage remains low today, an uptick in total debt reduces financial headroom if continued. Higher debt levels raise fixed obligations and could constrain strategic investments or acquisitions, and make the company more sensitive to interest cost and cash flow variability.

Industry Concentration

Heavy exposure to financial services, insurance and digital/retail clients creates concentration risk to sector-specific cycles, regulatory changes or client budget cuts. This end-market concentration can amplify revenue volatility and underscores the need for diversification.

eClerx Services Limited Business Overview & Revenue Model

Company Description

eClerx Services Limited provides data management, analytics, and process outsourcing services in the United States, the United Kingdom, Europe, and the Asia Pacific. The company offers customer experience solutions for business process optimization and customer interaction monitoring; field technical operations services for avoidable truck roll, dispatch services, connected homes, return merchandise authorization, and revenue assurance; omnichannel customer support services; advanced and digital analytics, and enterprise business intelligence solutions; and robotic process automation, Q-clips, workforce manager solutions, as well as chatbots and QA testing with test assure. It also provides digital solutions, such as speech and chat analytics, tag audits and implementation, data management and visualization, forecasting, personalization, social media services, A/B testing and optimization, reporting and automation, analysis and insights, and consulting and process optimization. In addition, the company offers derivative trade support, cash securities operations, regulatory compliance and data, document management, and analytics solutions, as well as technology products. It serves financial services, cable and telecommunications, retail, fashion, media and entertainment, manufacturing, travel and leisure, software, and high-tech industries. eClerx Services Limited was incorporated in 2000 and is based in Mumbai, India.

How the Company Makes Money

eClerx generates revenue through a diversified model primarily focused on services offered to its clients across various sectors. The company's key revenue streams include fees for KPO services, which involve data management, analytics, and operational support, as well as consulting services that help organizations optimize their processes. Additionally, eClerx benefits from long-term contracts and relationships with major clients, which provide a stable income base. The company also leverages technology and automation to enhance service efficiency, potentially reducing costs and increasing margins. Strategic partnerships with technology providers and industry leaders further augment its service offerings and market presence, contributing to its overall earnings.

eClerx Services Limited Financial Statement Overview

Summary

Strong income statement fundamentals (revenue growth, robust margins, solid profitability) supported by a low-leverage balance sheet and good cash conversion. Offsetting factors include a slight EBITDA margin decline and rising total debt that should be monitored.

Income Statement

eClerx Services Limited has shown strong revenue growth over the years, with a notable increase from 2024 to 2025. The gross profit margin is robust, indicating efficient cost management. The EBIT and EBITDA margins are healthy, reflecting strong operational performance. The net profit margin also remains solid, showing profitability. However, the slight decrease in EBITDA margin from 2024 to 2025 suggests a need for improved operational efficiency.

Balance Sheet

The company maintains a strong equity position with a satisfactory equity ratio, indicating financial stability. The debt-to-equity ratio is low, which suggests prudent financial leverage and effective debt management. Return on equity is commendable, showcasing effective use of shareholders' equity to generate profits. However, the increase in total debt from 2024 to 2025 requires careful monitoring to ensure continued financial health.

Cash Flow

eClerx Services Limited has experienced impressive free cash flow growth, underscoring its ability to generate cash after capital expenditures. The operating cash flow to net income ratio is strong, highlighting efficient cash conversion. Although the free cash flow to net income ratio is favorable, suggesting good cash generation relative to net income, the fluctuations in financing cash flows may indicate some volatility in financial activities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	35.18B	33.66B	29.26B	26.48B	21.60B	15.64B
Gross Profit	12.10B	10.21B	12.06B	8.84B	9.40B	5.16B
EBITDA	9.04B	8.08B	8.61B	7.89B	6.86B	4.84B
Net Income	5.71B	5.41B	5.11B	4.89B	4.17B	2.83B
Balance Sheet
Total Assets	0.00	31.46B	29.29B	22.88B	20.70B	20.08B
Cash, Cash Equivalents and Short-Term Investments	10.26B	10.26B	10.85B	6.89B	6.79B	6.56B
Total Debt	0.00	3.58B	2.66B	1.94B	1.63B	1.75B
Total Liabilities	-23.08B	8.38B	6.79B	5.71B	5.01B	5.06B
Stockholders Equity	23.08B	23.06B	22.48B	17.15B	15.68B	15.01B
Cash Flow
Free Cash Flow	0.00	5.33B	4.59B	4.02B	3.87B	3.26B
Operating Cash Flow	0.00	6.55B	5.26B	4.93B	4.48B	3.65B
Investing Cash Flow	0.00	1.31B	-4.88B	-843.95M	379.83M	-45.25M
Financing Cash Flow	0.00	-6.10B	-1.07B	-4.40B	-4.16B	-1.88B

eClerx Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4773.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ECLERX, the sentiment is Negative. The current price of 4773.2 is above the 20-day moving average (MA) of 3680.36, above the 50-day MA of 4241.90, and above the 200-day MA of 4091.49, indicating a bearish trend. The MACD of -322.17 indicates Positive momentum. The RSI at 26.31 is Positive, neither overbought nor oversold. The STOCH value of 18.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ECLERX.

eClerx Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMS	74 Outperform	₹161.31B	36.53	―	1.32%	12.35%	8.91%
JUSTDIAL	74 Outperform	₹46.73B	11.09	―	―	6.97%	12.91%
IEX	72 Outperform	₹108.39B	25.04	―	3.23%	14.10%	19.23%
BLS	70 Outperform	₹105.84B	20.31	―	0.31%	41.61%	44.11%
ECLERX	69 Neutral	₹146.36B	28.61	―	0.02%	17.83%	20.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IONEXCHANG	60 Neutral	₹51.72B	55.57	―	0.40%	11.56%	-2.78%

eClerx Services Limited Corporate Events

eClerx Seeks Shareholder Nod via Postal Ballot for Director Reappointment, ESOP Changes and Bonus Issue

eClerx Services Limited has launched a postal ballot process to seek shareholder approval on three key proposals: the re-appointment of Mr. Srinjay Sengupta as a non-executive independent director for a second five-year term, amendments to the company’s 2022 employee stock scheme, and the issuance of bonus shares. The remote e-voting window will run from February 4 to March 5, 2026, with the process overseen by an independent scrutinizer, and the outcomes could affect the company’s board composition, employee incentive structure, and capital structure, with potential implications for shareholder value and governance continuity.

eClerx completes dispatch of offer documents for ₹3,000-million share buyback

eClerx Services Limited has announced the completion of dispatch of the Letter of Offer, along with Tender Forms and related documentation, to eligible shareholders for its share buyback programme. The buyback covers up to 625,000 fully paid equity shares with a face value of ₹10 each at a price of ₹4,800 per share, aggregating to a maximum outlay of ₹3,000 million in cash, and the company has published statutory advertisements about this process in national and regional newspapers, signalling formal progress of the capital return exercise and providing clarity to investors on the execution of the tender offer.

eClerx Announces ₹3,000 Million Share Buyback via Tender Offer

eClerx Services Limited has launched a buyback of up to 625,000 fully paid equity shares, representing about 1.31% of its paid-up share capital, at a price of ₹4,800 per share through the stock exchange tender offer route, for a total consideration of up to ₹3,000 million excluding transaction expenses. The buyback, which falls within regulatory limits and is proportionately available to all shareholders of record as of December 17, 2025, is structured with specific entitlements for small shareholders and other eligible investors and is set to run from December 22 to December 29, 2025, signaling a capital allocation move that may enhance shareholder returns and optimize the company’s capital structure.