eClerx Services Ltd

Overview

• Web-link/QR code for FY2026 Annual Report issued to members without email addresses.
• 26th AGM to be held Sep 8, 2026 at 12:00 IST via Video Conferencing.
• Final dividend for FY2026: Re 1 per share; record date Aug 21, 2026; payment on/after Sep 8, 2026.
• E-voting window: Sep 4–7, 2026; cut-off Sep 1, 2026.
• TDS exemption documents due by Aug 20, 2026, 5:00 PM.
• KYC details to be updated with DPs or RTA.
• Annual Report FY2026 and Notice available for download at provided web link.

Overview

• Main activity: IT-enabled services including BPM, automation, and analytics; 100% turnover from these services.
• Reporting boundary covers eClerx Services Limited and India-based entities; 9 domestic, 21 international offices.
• BRSR disclosures are limited-assurance by TÜV SÜD South Asia.

Key ESG Risks & Opportunities

• Data privacy and cyber security are material risks and opportunities; mitigated by ISO 27001/27701 and governance.
• Climate risks/opportunities; mitigated via ISO 14001, BCMS, LEED/IGBC buildings, renewables.
• Human capital: retention, upskilling; SA8000 certified governance supports fair labor and training.
• Ethics/governance risks; strong code of conduct and anti-bribery policy.
• Customer centricity offers retention and growth through board oversight and client-focused governance.

Governance & Policy Highlights

• Board-level CSR & ESG Committee oversees sustainability strategy and decisions.
• Codes/policies: Code of Conduct, Ethics Policy, ABAC, SA8000, ISO 14001, ISO 27001/27701.
• Grievance mechanisms and whistleblower protections embedded across policies and intranet access.
• No material fines/penalties in FY2025-26; independent assurance by TÜV SÜD for core attributes.

Social Responsibility & Workforce

• Total employees: 18,166; 64% male, 36% female; 8 differently abled.
• 100% Indian employees have health and accident insurance; wellness programs and on-site care.
• Return-to-work rate 97%; overall retention 73%; annual performance appraisal coverage ~95%.
• SA8000-certified social accountability; four-stage grievance mechanism for permanent employees.
• Extensive CSR with NGO partners; beneficiaries across multiple programs (examples: Lighthouse, SAMPARC, Goonj).

Environmental Performance

• Total energy: Scope 1 443 tCO2e; Scope 2 3,233 tCO2e; total 3,676 tCO2e.
• Energy intensity: 0.13 tCO2e per million INR turnover; PPP-adjusted 2.58 tCO2e per million USD.
• Renewables share: 73% of total energy; Mumbai/Pune electricity 100% from renewables; LEED/IGBC 92% offices.
• Water withdrawal: 104,448 kl; water intensity 3.59 KL/million INR; 5.75 KL/employee.
• Waste: total 152.47 tons; 86.56 tons recycled; ZLD in all leased offices; ISO 14001; Net Zero by 2050.

Stakeholder Engagement & Complaints

• Stakeholders: employees, customers, suppliers, shareholders/investors, regulators, communities; channels include intranet, meetings, emails.
• Shareholder complaints: 26 filed in FY2025-26, 1 pending at year-end; 7 sexual harassment cases with 1 pending.
• Permanent staff grievances handled via four-stage process; confidential, non-retaliation protections.
• SA8000 audits conducted bi-annually; community grievances monitored with escalation to management.

Other Notable Metrics

• Inputs from MSMEs: 21% of direct inputs; 95% purchases from India.
• Related-party transactions: purchases 69.92%, sales 6.59%; 41% of top vendors trained on ESG.
• Sustainability governance: 65% of critical vendors sign ESG Commitment; ABAC policy in place.
• Affiliations: NASSCOM and EPCES; no lobbying; TÜV SÜD limited assurance on BRSR core attributes.

AGM Details

• Date/time/mode: 8 Sep 2026 at 12:00 IST, VC/OAVM.
• Record date for dividend: 21 Aug 2026.
• Deemed venue: 4th Floor Express Towers, Nariman Point, Mumbai.

Key Resolutions

• Ordinary business: adopt Audited standalone and consolidated financial statements.
• Ordinary business: declare dividend of Re 1 per share.
• Ordinary business: re-appoint Anjan Malik (DIN 01698542) as director retirement by rotation.

Voting Results

• Voting results for these resolutions are not provided in the filing.

Dividend

• Dividend proposed: Re 1 per share; payable after shareholder approval within 30 days.

Director Changes / Appointments

• Anjan Malik to be considered for re-appointment; details in annexure (journey, tenure, remuneration if any).

Auditor Appointments

• Statutory auditor: Price Waterhouse Chartered Accountants LLP; tenure to 2029-30; remuneration as disclosed in notes.
• Secretarial auditor: Mehta & Mehta; tenure 5 consecutive years.
• Internal auditor: Mahajan & Aibara; ongoing engagement.

Material Related Party Transactions

• No material related party contracts requiring shareholder approval; RPTs are in ordinary course and arm's length.

Other Material Approvals

• Postal-ballot approvals during the year included: independent director appointment, ESOP 2022 amendment, and buyback via tender.

Financial Performance

• Q1FY27 operating revenue USD 125.9m, up 15.2% YoY; sequential growth 2.8%.
• INR revenue 11,524 million, up 23% YoY.
• Operating EBITDA INR 2,652 million, margin 23%.
• PAT INR 1,643 million, margin 14%.
• New deal wins USD 41 million, up 25% YoY.
• Analytics and Automation grew 7% sequential; annual run rate above USD 100m.
• Sequential EBITDA margin declined 260 bps due to wage increments.
• OCF INR 1,073 million; OCF/EBITDA 38%.

Operations and Segments

• Hi-tech outlook remains positive; clients invest in transformation programs.
• BFSI pilots; cross-sell CX into BFSI.
• Emerging business led by F&A; expansion into APAC region.
• Coimbatore operations started; capacity expansion across centers with 1,600 seats planned.
• QA360 pilot goes live in Q2; ~0.5 million interactions monthly at scale.
• Fashion and Luxury revenue flat QoQ; early signs of recovery.
• Annualized revenue run rate surpassed USD 500m.
• ACV grew 26% this quarter; last year ACV ~USD 170m.
• Investor Day planned later this quarter.
• AI-led deals increasing; mix of productized services and human augmentation.

Q&A Highlights

• BFSI growth to turn positive in H2FY27; mortgage servicing in US underway.
• ACV target: last year's ~USD 170m; aim to exceed.
• Capex guidance: INR 130–150 crores for the year; 3-year capex depends on board budget.
• Margin trajectory: 24–28% midpoint; AI mix could support margin.
• Non-top-10 growth remains priority; top-10 share to trend lower.
• US regulatory environment: no further change; CMT volatility is quarterly.
• Acquisitions possible; focus remains organic unless opportunities align.
• Voice vs non-voice mix: some clients shift to voice; overall balance maintained.
• Emerging markets momentum supported by F&A capability; ongoing growth.

Guidance and Outlook

• Full-year EBITDA margin guidance remains 24–28%.
• Top-quartile growth target reaffirmed; AI/tech mix supports growth.
• Cross-sell and larger deals to lift ACV and revenue.
• Investor Day planned later this quarter for deeper capability insights.
• AI impact on headcount positive; billed headcount up; utilization up.
• Company crossed USD 500m annualized revenue run rate; trajectory to higher growth remains.
• Capex guidance for this year is INR 130–150 crores; board budget pending.

Meeting Details

• Date: August 11, 2026.
• Interaction: One-to-one meeting with HSBC Asset Management India Pvt. Ltd.
• Discussion: Industry/company developments already in public domain.
• Venue: Virtual.
• Type: One-to-One.

Participants

• Key company participants: Management team.

Purpose

• Purpose: One-to-one investor interaction to discuss public-domain industry/company developments.

Meeting Details

• Date: August 13, 2026; Group meet (physical) at Mumbai during Equirus Annual India Conference.
• Discussion: Industry and company-specific developments already in public domain.

Purpose

• Investor interaction and discussion on publicly disclosed industry and company developments.

Participants

• Company management team (roles not specified).

Meeting Details

• Date: August 12, 2026.
• Interaction: Emkay Global Confluence Conference.
• Discussion: Industry and company developments already in public domain.
• Venue: Mumbai.
• Type: Group meet.

Participants

• Key participants from the company: management team; roles not specified.

Purpose

• Purpose: General investor interaction to discuss public-domain developments.

Meeting Details

• Date: August 6, 2026.
• Event: earnings call for quarter ended June 30, 2026; group discussion.
• Mode: audio recording uploaded on the company website.
• Participants: company management (roles not specified).
• Purpose: discuss quarterly results.
• Availability: recording accessible on the website.