[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Manu Jemini [@ManuJemini](/creator/twitter/ManuJemini) on x XXX followers Created: 2025-07-24 16:54:45 UTC eClerx Services: Strong Deal Wins & Margin Improvement Signal Growth Momentum! 💻🌐 A deep dive into their Q4 FY25 Earnings Call ⬇️ eClerx closed FY25 on a high note, with a strong Q4 performance and a record deal intake of $XXX million in net new Annual Contract Value (ACV) for the full year. The company's strategy of mining existing clients and winning new logos is paying off, and it is expanding its global delivery footprint. X. Outlook & FY26 Guidance - Margin Stability: Management has maintained its EBITDA margin guidance band of 24%-28% for FY26. The focus is on driving "profitable growth." - Higher Deal Intake: The deal pipeline for FY26 is "better than when we started in FY25," and management expects the ACV for the new fiscal year to be higher than the $XXX million achieved in FY25. - Cautious Optimism: The overall outlook for FY26 is "cautiously optimistic." Q1 is expected to be seasonally soft due to wage hikes and some macro uncertainty. - Headcount Growth: Hiring momentum is expected to continue into FY26, with headcount growth broadly in line with revenue growth. 🎯 X. Financial Performance - Strong Q4 Finish: Q4 FY25 revenue was $XXXXX million (+4.2% QoQ), with the EBITDA margin improving by XXX bps QoQ to 27.3%. - Full Year FY25: Revenue grew by XXXX% YoY to $XXXXX million. The full-year EBITDA margin stood at 26%, at the midpoint of the guided range. - Profitability: FY25 Profit After Tax (PAT) grew by XXX% YoY to ₹5,411 Crores. ✅💰 X. Strategic Execution & Client Mining - Three-Pronged Strategy: Management highlighted that their strategy to strengthen sales operations, mine existing clients for cross-sell opportunities, and win new logos is "working well." - Top Client Growth: The top XX clients now account for ~64% of revenue, reflecting strong growth and deeper engagement with large, Fortune XXX accounts. - "One eClerx" Approach: The focus on cross-selling and upselling across the organization has led to a more than XX% YoY increase in deal intake with a stable sales team headcount. 🤝 X. Geographical Expansion - New Delivery Centers: The company has expanded its global delivery footprint by opening new centers in Lima, Peru (already operational) and Cairo, Egypt (to start soon). - Rationale: These new centers are demand-driven, based on specific client requests and the overall attractiveness of the locations. While they may create some initial margin headwinds, the portfolio mix will be managed to stay within the guided range. 🌎 X. AI & Productized Services - AI as a Differentiator: Management views AI as an opportunity, not a threat, and is willing to "cannibalize" its own revenue by passing on productivity gains to clients to build long-term value. - Productized Services: The company's "productized services" and Business Process as a Service (BPaaS) offerings now account for ~19-20% of revenue. These solutions, enhanced with GenAI, are a key differentiator. 🤖 X. Vertical Performance - Growth Drivers: The BFSI vertical is seeing broad-based opportunities, especially in regulatory and compliance work. The Customer Operations and Analytics & Automation (+17% YoY) segments are also showing strong momentum. - Headwinds: The Fashion & Luxury vertical remains under pressure due to macro weakness in the US and China. 🤖 X. Management Tone - Confident: The management's tone was confident, highlighting the strong momentum from their strategic initiatives. While acknowledging the challenging macro environment in certain sectors, they are focused on disciplined execution and maintaining their margin profile. 👍 XX engagements  **Related Topics** [quarterly earnings](/topic/quarterly-earnings) [momentum](/topic/momentum) [Post Link](https://x.com/ManuJemini/status/1948426637986419103)
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Manu Jemini @ManuJemini on x XXX followers
Created: 2025-07-24 16:54:45 UTC
eClerx Services: Strong Deal Wins & Margin Improvement Signal Growth Momentum! 💻🌐
A deep dive into their Q4 FY25 Earnings Call ⬇️
eClerx closed FY25 on a high note, with a strong Q4 performance and a record deal intake of $XXX million in net new Annual Contract Value (ACV) for the full year.
The company's strategy of mining existing clients and winning new logos is paying off, and it is expanding its global delivery footprint.
X. Outlook & FY26 Guidance
- Margin Stability: Management has maintained its EBITDA margin guidance band of 24%-28% for FY26. The focus is on driving "profitable growth."
- Higher Deal Intake: The deal pipeline for FY26 is "better than when we started in FY25," and management expects the ACV for the new fiscal year to be higher than the $XXX million achieved in FY25.
- Cautious Optimism: The overall outlook for FY26 is "cautiously optimistic." Q1 is expected to be seasonally soft due to wage hikes and some macro uncertainty.
- Headcount Growth: Hiring momentum is expected to continue into FY26, with headcount growth broadly in line with revenue growth. 🎯
X. Financial Performance
- Strong Q4 Finish: Q4 FY25 revenue was $XXXXX million (+4.2% QoQ), with the EBITDA margin improving by XXX bps QoQ to 27.3%.
- Full Year FY25: Revenue grew by XXXX% YoY to $XXXXX million. The full-year EBITDA margin stood at 26%, at the midpoint of the guided range.
- Profitability: FY25 Profit After Tax (PAT) grew by XXX% YoY to ₹5,411 Crores. ✅💰
X. Strategic Execution & Client Mining
- Three-Pronged Strategy: Management highlighted that their strategy to strengthen sales operations, mine existing clients for cross-sell opportunities, and win new logos is "working well."
- Top Client Growth: The top XX clients now account for ~64% of revenue, reflecting strong growth and deeper engagement with large, Fortune XXX accounts.
- "One eClerx" Approach: The focus on cross-selling and upselling across the organization has led to a more than XX% YoY increase in deal intake with a stable sales team headcount. 🤝
X. Geographical Expansion
- New Delivery Centers: The company has expanded its global delivery footprint by opening new centers in Lima, Peru (already operational) and Cairo, Egypt (to start soon).
- Rationale: These new centers are demand-driven, based on specific client requests and the overall attractiveness of the locations. While they may create some initial margin headwinds, the portfolio mix will be managed to stay within the guided range. 🌎
X. AI & Productized Services
- AI as a Differentiator: Management views AI as an opportunity, not a threat, and is willing to "cannibalize" its own revenue by passing on productivity gains to clients to build long-term value.
- Productized Services: The company's "productized services" and Business Process as a Service (BPaaS) offerings now account for ~19-20% of revenue. These solutions, enhanced with GenAI, are a key differentiator. 🤖
X. Vertical Performance
- Growth Drivers: The BFSI vertical is seeing broad-based opportunities, especially in regulatory and compliance work. The Customer Operations and Analytics & Automation (+17% YoY) segments are also showing strong momentum.
- Headwinds: The Fashion & Luxury vertical remains under pressure due to macro weakness in the US and China. 🤖
X. Management Tone
- Confident: The management's tone was confident, highlighting the strong momentum from their strategic initiatives. While acknowledging the challenging macro environment in certain sectors, they are focused on disciplined execution and maintaining their margin profile. 👍
XX engagements
Related Topics quarterly earnings momentum