Financial Performance Highlights

Q2 FY27 Financial Results:

  • Operating Revenue: USD 127.7 million (up 10.6% YoY, 1.5% QoQ)
  • INR Operating Revenue: INR 11,887 million (up 18% YoY)
  • Constant Currency Growth: 12.9% YoY, 1.6% QoQ
  • Operating EBITDA: INR 2,839 million
  • Operating EBITDA Margin: 23.9% (improved 90 bps QoQ)
  • PAT: INR 1,804 million (14.9% margin, up 9.8% QoQ)
  • EPS: INR 19.6
  • Return on Equity: 24.7%
  • Total Revenue (including other income): INR 12,126 million (up 3.6% QoQ)
  • Other Income: INR 240 million (higher due to revaluation income)

H1 FY27 Financial Results:

  • USD Operating Revenue: USD 253.6 million (up 12.8% YoY)
  • Operating EBITDA Margin: 23.5%
  • EBITDA including other income: 24.8%

Operational Metrics

  • Headcount: Increased 3.4% QoQ (724 additions in offshore delivery)
  • Utilization: 74.9% (down from 75.5% in Q1)
  • Attrition: 23.4% (increased due to post-wage increment seasonality)
  • India Seat Count: 16,824 seats (up 1,400 with new capacity in Mohali and Chandigarh)
  • Top 10 Client Concentration: 60% (unchanged)
  • Clients above USD 3 million: 25 (up from 20 a year ago)
  • DSO: 79 days (unchanged)
  • Net Operating Cash Flow: INR 2,694 million
  • OCF-to-EBITDA Ratio: 87.5% (recovered from 38% in Q1)
  • Cash & Cash Equivalents: INR 14,318 million

Business Segment Performance

Analytics & Automation:

  • Grew 5% sequentially and 27% YoY
  • Annual run rate: ~USD 109 million
  • Represents ~20% of total revenue
  • Technology team: 2,300 people
  • 280+ employees with Claude AI certifications

Vertical Performance:

  • Emerging Business: 12.6% of revenue (up from 11.7%)
  • Communication, Media & Telecom: Broadly flat sequentially
  • BFSI: Grew ~3% sequentially
  • Hi-tech & M&D: Continued traction in agentic AI and transformation services
  • Fashion, Luxury & Retail: Flat YoY (seasonally lower due to August holidays)

Capital Expenditure & Investments

  • Q2 CapEx: INR 585 million
  • H1 CapEx: INR 919 million
  • Expected H2 CapEx: Similar to H1 (~INR 900 million)
  • New facilities coming online in Mumbai and Pune in H2
  • Additional 800-1,000 seats to be added in coming quarters

Margin Outlook & Headwinds

Full Year Guidance: EBITDA margin expected to remain in 24-28% range

H2 Margin Impact Factors:

  • Statutory PF wage ceiling revision from INR 15,000 to INR 25,000 per month (effective September 17, 2026) - expected 20 bps margin impact
  • Depreciation & Amortization: Increased to INR 558 million (4.7% of operating revenue from 4.3% last quarter)
  • Expected additional 20 bps D&A increase in H2 due to new facilities

Deal Wins & Pipeline

  • Q2 Deal Wins: USD 31 million (vs USD 41 million last quarter)
  • H1 Deal Wins: USD 72 million (vs USD 78 million same period last year)
  • Clients taking longer decision cycles with smaller initial deal sizes
  • Spending shifting toward AI-related investments
  • Pipeline remains healthy across verticals

Strategic Initiatives

  • Continued investment in AI and technology capabilities
  • Expanding AI team in EU and US with focus on placing engineers closer to clients
  • Building capabilities in adjacent service areas (payments, mortgages, document digitization)
  • Focus on domain-centric AI solutions with human-in-the-loop approach

Awards & Recognition

  • Won two awards at NASSCOM BPM Excellence Awards 2026 (Talent and Customer Experience categories)
  • Recognized as Great Place to Work in India for second consecutive year
  • Received CSO 100 and CIO 100 recognition for agentic AI use cases

Management Commentary Outlook

  • Demand environment remains mixed with client selectivity
  • Momentum in emerging business and Hi-tech segments
  • New voice programs ramping up in Communication, Media & Telecom
  • Expected seasonal recovery in Fashion and Luxury
  • Volume pressure in some BFSI accounts
  • Cautiously optimistic about BFSI recovery in Q4 FY27
  • Focus on disciplined cost management and cash conversion