eClerx Services Limited has announced the merger of two of its wholly-owned step-down subsidiaries, effective November 3, 2025. The company disclosed that Eclipse Global Holdings Inc will merge with Personiv Eclipse Inc, both of which were acquired by eClerx in December 2020.

Financial Details

The merger involves two business process management entities, aiming to consolidate and streamline the corporate structure. For the financial year ended March 31, 2025, the companies reported the following turnover:

Merger Specifics

• Effective Date: November 3, 2025
• Type of Transaction: Merger of wholly-owned step-down subsidiaries
• Cash Consideration: None
• Share Issuance: No new shares will be issued

Impact on eClerx

eClerx Services Limited has confirmed that its shareholding pattern will remain unchanged as it is not a direct party to the merger. The company stated that this consolidation is aimed at achieving a more efficient corporate structure.

Regulatory Compliance

The merger is exempt under Regulation 23(5)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as it involves wholly-owned subsidiaries of the company.

Future Outlook

While the immediate financial impact of this merger appears limited, it represents a strategic move by eClerx to streamline its operations. The consolidation could potentially lead to reduced administrative costs and improved operational efficiency in the long term.

Investors and stakeholders should note that this corporate action is part of eClerx's ongoing efforts to optimize its organizational structure following the acquisitions made in December 2020. As the business process management landscape continues to evolve, such strategic realignments may become increasingly common among industry players seeking to enhance their competitive position.

eClerx Services Limited , a leading provider of business process management, analytics, and technology services, has reported a strong financial performance for the second quarter of fiscal year 2026. The company's results showcase significant growth in revenue and profitability, underlining its resilience in a dynamic market environment.

Financial Highlights

eClerx delivered impressive quarterly results with operating revenue reaching $115.5 million, marking a 5.7% sequential increase. In Indian Rupee terms, the operating revenue stood at INR 10,049 million, up 7.5% quarter-on-quarter. The company's profitability metrics also showed substantial improvement:

For the first half of FY26, eClerx reported USD operating revenue of $225 million, representing a 17% year-on-year growth.

Business Performance

The company witnessed strong growth across various segments:

• Emerging businesses showed exceptional growth, particularly in the Financial Services subsegment.
• Communication, Media & Telecom (CMT) and Hi-Tech verticals demonstrated strong performance.
• BFSI (Banking, Financial Services, and Insurance) sector experienced modest growth.
• Fashion & Luxury segment continues to face pressure, reflecting broader industry trends.

eClerx secured deal wins totaling $46 million for the quarter, indicating a healthy pipeline and market demand for its services.

Operational Updates

• The company added 400 seats in Pune, expanding its operational capacity.
• Attrition rate was reported at 20%, which is typical following annual pay hikes and bonuses.
• Days Sales Outstanding improved to 76 days, reflecting enhanced efficiency in collections.

Management Commentary

Kapil Jain, Managing Director and Group CEO, commented on the results: "We are pleased with our Q2 performance, which reflects the strength of our diversified portfolio and our ability to deliver value to clients across sectors. Our focus on technology-enabled solutions and domain expertise continues to resonate well with our clients."

Future Outlook

Management expects Q3 margins to be lower than Q2 due to recent INR appreciation. However, they maintain the full-year EBITDA margin guidance of 24-28%. The company remains cautiously optimistic about its growth prospects, particularly in the BFSI, CMT, and Hi-Tech verticals.

Capital Allocation

The Board of Directors has approved a buyback of INR 300 crores, demonstrating confidence in the company's financial position and commitment to shareholder returns. Notably, the promoters will not participate in this buyback.

eClerx's strong Q2 performance underscores its resilience and adaptability in a challenging market environment. With a robust deal pipeline and strategic focus on high-growth areas, the company appears well-positioned to capitalize on emerging opportunities in the business process management and technology services space.