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eClerx Services shares fall over 3% despite strong Q1 earnings; margin pressure weighs on sentiment

eClerx Services shares fell more than 3% in early trade on Thursday despite reporting a strong year-on-year growth in revenue and profit for the June quarter (Q1 FY27).

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eClerx Services
shares fell more than 3% in early trade on Thursday despite reporting a strong year-on-year growth in revenue and profit for the June quarter (Q1 FY27). As of 11:09 AM, the stock was trading near its day's low as investors reacted to a decline in operating margins.

The company reported a 16% increase in consolidated net profit to Rs. 164 crore, compared to Rs. 142 crore in the same quarter last year. Revenue from operations rose 23.3% year-on-year to Rs. 1,152 crore, up from Rs. 935 crore, reflecting healthy business growth.

Operating performance also improved, with EBIT rising 15.1% to Rs. 216 crore from Rs. 187 crore a year ago. However, the EBIT margin slipped to 18.7% from 20%, indicating higher operating costs, which appears to have dampened investor sentiment despite the robust earnings growth.

At 11:09 AM, eClerx Services shares were down over 3%. The stock traded between an intraday low of Rs. 1,811.30 and a high of Rs. 1,890, against the previous close of Rs. 1,917.80. The counter recorded a trading volume of 2.91 lakh shares. Over the past 52 weeks, the stock has touched a high of Rs. 2,497.50 and a low of Rs. 1,320.

 
 
 

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