India's eClerx Services extends decline on brokerages' downgrade

eClerx Services

07/08/2026 09:16

** Shares of automation and analytics services provider eClerx Services ECLE.NS fall as much as 4.16% to 1,794.5 rupees, extend post-results decline 
** ECLE stock down 2.4% in the previous session despite June-quarter consolidated net profit up 15.5% year-on-year to 1.64 billion rupees ($17.21 million), as brokerages flag softer revenue growth, margin pressure and demanding valuations as key concerns
** Nomura downgrades the stock to "neutral" from "buy", while Emkay Global cuts it to "reduce" from "buy" 
** Emkay calls operating performance softer than expected, cites wage hikes and higher G&A spending
** Trims FY2027-FY2029 EPS estimates by 2%-6% and flags near-term margin pressure
** BOB Capital Markets says ECLE's first-quarter revenue and margins miss expectations, while annual contract value accretion remains soft
** Average recommendation among 10 analysts is "hold", with a median target price of 1,977.5 rupees, according to LSEG-compiled data
** ECLE shares are down 23.2% so far in 2026, according to exchange data

($1 = 95.2700 Indian rupees)


 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))