eClerx Q4 profit surges 16.6% as global expansion counters tariff risks
MUMBAI, INDIA — Mumbai-based eClerx Services, a leading knowledge process outsourcing (KPO) firm, reported strong financial performance in the fourth quarter of fiscal year 2025, with revenues reaching ₹898 crore (US$104.9 million) and margins holding steady at 19%.
Chief Financial Officer (CFO) of eClerx, Srinivasan Nadadhur, also pointed out that while activity in deals is its strongest point, the new U.S. tariffs on retail goods could affect the business as a whole.
Resilient growth amid external uncertainties
eClerx continues to win deals, which adds positivity to the outlook for the near future. The company’s director pointed out that their various clients and emphasis on valuable data analytics and individualized knowledge process outsourcing (KPO) services have enabled it to keep growing.
On the other hand, he pointed out America’s tariff plan as a newly developing problem, making many retail clients reconsider their spending habits.
To counterbalance external pressures, eClerx is doubling down on AI and automation investments to enhance efficiency and client value.
The company is also expanding its global delivery network, with new centers in Lima and Cairo, though this expansion is expected to temporarily pressure margins. Despite this, eClerx remains confident in its 24% to 28% EBITDA margin guidance, signaling disciplined cost management.
Stable operations despite attrition fluctuations
Employee attrition, a key metric for outsourcing firms, has remained within manageable levels for eClerx, fluctuating between 20 and 30%.
Nadadhur described this range as normal for the industry, with quarter three seeing slightly lower attrition and quarter four expected to tick up marginally.
Yet, eClerx is moving forward slowly, avoiding possibilities that could threaten the company’s profit margins. He repeated that while setting up new delivery centers might temporarily hurt profits, they help Tata Consultancy Services (TCS) thrive and remain competitive in an increasingly competitive global outsourcing scene.
eClerx recently ranked #36 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
