eClerx Services has appointed Hoshi Mistry as Principal and a member of the Executive Leadership Team, effective July 10, 2026. In this role, Mistry will lead the company’s global delivery operations for Customer Experience, reporting directly to Kapil Jain, CEO and Managing Director.

Mistry brings more than two decades of leadership experience to the position. He was among eClerx’s earliest leaders and played a key role in the company’s growth and evolution before leaving to gain leadership experience outside the organization.

Strategic Context

Kapil Jain stated that Mistry’s return marks an exciting moment for the organization. Jain noted that having helped shape eClerx during its formative years, Mistry is well positioned to lead the global delivery for Customer Experience into its next phase of growth.

Mistry expressed enthusiasm about returning at an important time in the company’s journey. He cited his belief in the strength of eClerx’s people, culture, and client-first mindset, adding that he looks forward to working with teams and clients globally to deliver operational excellence and innovation.

Company Profile

eClerx provides AI-powered analytics, digital operations services, automation, and business process management. The publicly listed company partners with Fortune 500 enterprises across financial services, telecom, media and entertainment, luxury, retail and fashion, and manufacturing. It operates across 17 countries with over 22,000 employees, serving clients in the Americas, APAC, and EMEA.

eClerx Services Limited reported a 15.2% year-on-year increase in operating revenue to $125.9 million for the quarter ended June 30, 2026, marking its 12th consecutive quarter of sequential growth. The Hyderabad-based business process outsourcing firm crossed an annualized revenue run rate of $500 million, driven by strong demand for AI-led analytics and automation services. Consolidated net profit rose 16% to ₹164.3 crore, while operating EBITDA stood at ₹2,652 million with a margin of 23%.

Financial Performance

Consolidated total revenue reached ₹1,170.2 crore (up 23.8% YoY), including other income of ₹178.59 million. In constant currency terms, operating revenue grew 15% year-on-year and 2.9% sequentially. Net operating cash flow was ₹1,073 million, resulting in an OCF-to-EBITDA ratio of 38%, which management attributed to the payout of annual variable bonuses for FY26.

Operating EBITDA margins declined 260 basis points quarter-on-quarter primarily due to wage increments (210 bps) and increased spending on computer and network infrastructure (40 bps). These were partially offset by a 60 bps reduction in selling and distribution costs. Excluding foreign exchange impacts, the sequential margin decline would have been 330 bps.

Operational Highlights

New deal wins totaled $41 million, up 25% year-on-year. The Analytics and Automation segment grew 7% sequentially, crossing a $100 million annual run rate. Management highlighted strong momentum in emerging businesses, particularly Finance and Accounting (F&A), which has delivered growth for four consecutive quarters.

Total delivery headcount decreased by 0.6% quarter-on-quarter to 22,376, but billed headcount increased due to higher utilization at 75.5%. Offshore voluntary attrition improved to 18.1% from 21.7% in the previous quarter. The company is adding approximately 1,600 seats across delivery centers in Mumbai, Pune, Chandigarh, Mohali, and Coimbatore over the next three to four months.

Sector Updates

In the BFSI segment, which had seen softness in previous quarters, management noted positive trends with new wins in mortgage servicing and contact center setup for a banking client in Fayetteville, U.S. The Hi-tech vertical remains strong with continued investment in transformation programs. Conversely, Media & Entertainment (M&D) and Retail segments faced headwinds due to supply chain challenges from the Middle East conflict, leading to cautious client spending.

What the Numbers Show

The divergence between robust top-line growth (15.2% USD) and compressed margins (23%) reflects the transitional phase of investing in AI capabilities and infrastructure. While wage hikes and capex pressures weighed on near-term profitability, the 25% surge in new deal wins and the $500M annual run rate milestone suggest that scale economies may support margin recovery. Management reaffirmed its full-year EBITDA margin guidance of 24% to 28%, indicating confidence that revenue growth will absorb incremental costs in subsequent quarters.