Quarterly Financial Performance (Q1FY27)

  • Revenue: INR 27.2 billion (US$288 million)
  • Revenue Growth (YoY): 22.9% in INR terms; 11.2% in US$ terms; 12.3% in constant currency terms
  • Revenue Growth (QoQ): 5.5% in INR terms; 1.8% in US$ terms; 2.2% in constant currency terms
  • EBIT: INR 3,367 million
  • EBIT Margin: 12.4% (up 110 bps YoY and 20 bps QoQ)
  • Adjusted Profit After Tax (PAT): INR 2.2 billion (up 31.2% YoY and 8.3% QoQ)
  • Adjusted PAT Margin: 8.2% of revenue
  • Diluted EPS: INR 2.36
  • Reported PAT (incl. exceptional items): INR 1.7 billion
  • Tax Rate: ~23% (company moved to new tax regime in India)

Exceptional Items

Three one-time charges totaling INR 717 million (INR 563 million net of tax) were recognized:

1. Healthcare Program Termination: A charge of INR 357 million (net INR 271 million) related to the wind-down of a transformative BPaaS engagement with a leading UK-based benefits and pension administration provider following a client leadership change. The company has completed the first phase of resolution and collected amounts, and is actively pursuing recoveries for the full contractual entitlement. The financial impact of this program's loss on FY27 growth is estimated at 1-1.5%.

2. Regulatory Penalty Indemnification: A charge of INR 284 million (net INR 216 million) relating to indemnifying a customer for a regulatory penalty from a prior-period contractual performance matter in healthcare operations. A claim has been filed under the company's insurance policy, and management is optimistic about a favorable recovery outcome.

3. Acquisition Fair Value Adjustment: A charge of INR 76 million for a fair value adjustment on contingent consideration payable for the Ascensos acquisition, triggered as Ascensos delivered over its margin and revenue guidance.

Balance Sheet & Cash Flow

  • Cash & Bank Balances: INR 3 billion
  • Net Debt: INR 17.1 billion (vs. INR 16.3 billion at March 2026)
  • Normalized DSO: 67-69 days
  • Normalized FCF to PAT: ~94%
  • Hedge Book (as of June 30, 2026):
  • GBP 61.6 million covered for next 12 months at an average rate of INR 118-120
  • USD 119 million covered at an average rate of INR 92.7
  • Additional option products are held to enhance rates.

Business Highlights & Deal Wins

  • Signed 4 large deals (ACV >$5M), the sixth consecutive quarter with 4+ large deals.
  • ACV intake was the highest in the last four quarters.
  • Added 12 new logos, including 3 strategic logos (potential >$5M annual relationship).
  • Notable Q1 Wins:
  • Large transformative deal with a leading UK-based benefits and pension admin provider for end-to-end back-office transformation.
  • Large deal from a leading US academic medical centre for insurance follow-up and denials management (new logo).
  • Expansion with a leading US public health system for patient contact centre services.
  • New deal with a US-based health insurance provider for customer experience.
  • Account servicing and customer experience deal with a US-based on-demand manufacturing marketplace.
  • Customer service operations across Europe for a leading international public transport and shared mobility operator.
  • Expansion with a UK-based fibre broadband provider for customer experience services from South Africa.

Vertical Performance (Constant Currency YoY/QoQ Growth)

  • Banking & Financial Services (BFS): +14% YoY / +5% QoQ. Added 5 new logos. Strong demand in collections, financial crime, compliance, and intelligent operations.
  • Healthcare: +11% YoY / -2% QoQ. Added 4 new logos. Growth impacted by Medicare Advantage client program recalibrations and the winding down of one BPaaS engagement.
  • CMT (Communications, Media & Tech): +6% YoY / +9% QoQ. Added 2 new logos. Volatility noted in consumer tech engagements.
  • Diverse (Utilities, Retail, Pastdue Credit): +27% YoY / 0% QoQ. Added 1 new logo. Strong utilities pipeline and UK utilities ecosystem expansion.

Geographical Performance (Constant Currency)

  • North America: +8% YoY / 0% QoQ. Broad-based momentum; incubating new opportunities in Canada and replicating UK capabilities in the US.
  • Europe: +18% YoY / +6% QoQ. Strong growth; won 2 large deals. South Africa is the fastest-growing delivery geography.
  • Australia: Revenue doubled YoY; strong pipeline.

People & Operations

  • Headcount: 36,875 associates (net increase of 670 from Q4FY26).
  • Voluntary Attrition: 27.5% for the quarter.
  • Hiring: ~80% of gross additions were offshore/nearshore.
  • AI in HR: Rolled out predictive attrition risk console and AI-enabled people operations.

Strategic Priorities & AI Focus

  • Core strategy is "Intelligence That Operates," executed via the Kairos Intelligent Context Framework.
  • AI platforms are in live production at scale for top US mortgage lenders, health plans, and card issuers.
  • Key Partnerships Announced:
  • Zendesk: Building vertical-specific service solutions in retail, financial services, and healthcare.
  • Cresta: Stood up a dedicated AI Centre of Excellence.
  • Silicon Valley Startups: Targeted investments to strengthen the intelligent context framework.
  • New Growth Initiatives: Launched five new geographic engines (Middle East, South Africa, Canada) and three new capability frontiers (US Retail/CPG practice, marketing services, security & resiliency services).

Client Metrics

  • 145 clients generating >$1 million in revenue run rate.
  • The number of $5M+ clients grew by 3 in the quarter and is up 80% over the past two years.
  • The number of $1M+ clients is up 45% over the past two years.
  • Revenue share of top 5 and top 10 clients has decreased over the last eight quarters.

Outlook for FY27

  • Revenue Guidance Reaffirmed: Constant currency growth of 10% to 13%.
  • Margin Guidance Reaffirmed: EBIT margin band of 12.25% to 12.75%.
  • The original guidance had factored in 1-1.5% growth from the now-wound-down healthcare BPaaS engagement. This is expected to be offset by strong new deal wins and a healthy pipeline.
  • Long-term aspiration remains to achieve a 14-15% EBIT margin band over the next 2-3 years.