Financial Performance Overview

Q2 2026 Financial Results

  • Revenue: ₹601.7 crores ($63.6 million), representing 30.2% YoY growth and 4.7% QoQ growth
  • Adjusted EBITDA: ₹120.7 crores ($12.8 million) at 20.1% margin, showing 51.4% YoY growth and 4.4% QoQ growth
  • Adjusted Net Profit: ₹62.9 crores ($6.6 million) at 10.5% margin, with 35.4% YoY growth
  • Adjusted EPS: ₹5.3, representing 35.3% YoY growth
  • Gross Margin: 39.2% compared to 36% in previous quarter and same quarter last year

H1 2026 Financial Results

  • Revenue: ₹1,176.5 crores ($126.4 million), showing 30.1% YoY growth
  • Adjusted EBITDA: ₹236.4 crores ($25.4 million) at 20.1% margin, representing 51% YoY growth
  • Adjusted Net Profit: ₹138.7 crores ($14.9 million) at 11.8% margin, with 54.4% YoY growth
  • Adjusted EPS: ₹11.7, representing 54.3% YoY growth

Operational Metrics

  • Revenue by Geography: Americas 71.5% (vs 69.3% previously), APAC 15.3%, Europe 9.7%, Middle East and Africa 3.6%
  • Client Concentration: Top client 6% (vs 5.8%), Top 10 clients 24.4% (vs 24%)
  • Utilization: 80.5-81% (within target band)
  • DSO: Billed DSO 55-56 days, Billed plus unbilled ~75 days
  • Headcount: Largely flat year-on-year despite revenue growth

Key Business Wins

The company secured multiple AI-focused deals in Q2:

1. Leading global telecom player: Advanced analytics, data science and intelligent solutions for business insights

2. Large financial institution: Creating GCC in India for product engineering, software engineering, digital operations and AI-powered lending innovation

3. Global insurance and financial services provider: AI-powered quality engineering and testing enhancements

4. Global financial services organization: Retail transformation using Microsoft Dynamics 365 and omni-channel platforms

5. Leading ad tech company: Modernization of core platform using AI without disruption

ACV Bookings

  • Trailing 12-month ACV bookings: $82.9 million in Q2 vs $82.3 million in Q1
  • Deal sizes and duration continue to increase

Financial Details

  • SG&A Expenses: Increased by ₹23.8 crores from ₹91.4 crores in Q1 to ₹115.3 crores in Q2, mainly due to higher sales/marketing spend
  • RSU Expense: ₹6.2 crores under management incentive plan (vs ₹6.4 crores last quarter)
  • Depreciation & Amortization: ₹22 crores (includes ₹10.6 crores for intangible capitalization from past acquisitions)
  • Interest Expense: ₹9.5 crores (vs ₹9.6 crores last quarter)
  • Other Income: Negative ₹87 lakh vs income of ₹13.1 crores last quarter
  • Exchange Loss: ₹2.1 crores vs ₹11.3 crores last quarter
  • Tax Expense: ₹24.94 crores with effective tax rate of 31% (normalized rate 28-29%)
  • Forward Covers: $43.32 million with average rate of 93.27

Strategic Updates

  • Company recognized as Horizon 2 GCC Accelerator by HFS in their Horizon GCC Service 2026 report
  • AI-first model showing results with revenue from data, AI and cloud services exceeding 50%
  • Agentic business operations seeing traction with deep domain understanding
  • Modernization service offerings leveraging AI for legacy code bases and data estates
  • Productivity gains from AI-led delivery showing 2x productivity and 55% gains in turnaround time
  • Continued investments in sales and marketing, including new brand identity and EXIQO AI studio launch

Management Commentary

  • Market trends: Organizations focused on cost of running AI, legacy modernization, engineering velocity as key differentiator
  • Positioning: Strong validation of AI-first model, credible player in AI-led transformation space
  • Growth strategy: Organic plus inorganic approach, continued evaluation of acquisition opportunities
  • Pipeline: Quality improved with better average deal sizes, though conversion timing remains uncertain

Q&A Highlights

  • SG&A increase due to deliberate investments in sales/marketing and AI domain experts
  • No formal guidance provided, but trailing 12-month metrics show positive momentum
  • GCC business growing but percentage of revenue not separately disclosed
  • Deal durations and sizes increasing, revenue mix shifting toward more strategic AI/cloud/data work
  • Novigo acquisition contributing to agentic business operations capabilities
  • No significant AI deflation observed due to project-based (not annuity) revenue model