This article first appeared on GuruFocus .
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Revenue:Rs 601.7 crore ($63.6 million) in Q2 2026, a 30.2% year-over-year increase and 4.7% quarter-over-quarter growth.
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Adjusted EBITDA:Rs 120.7 crore ($12.8 million), up 51.4% year-over-year, with margins expanding to 20.1% from 17.3% in the prior-year quarter.
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Adjusted Net Profit:Rs 62.9 crore ($6.6 million), a 35.4% year-over-year increase, representing a 10.5% margin.
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Adjusted EPS:Rs 5.3, reflecting a 35.3% year-over-year growth.
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Gross Margin:Improved to 39.2% in Q2, up from 36% in both the previous quarter and the year-ago quarter.
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H1 Revenue:Rs 1,176.5 crore ($126.4 million), a 30.1% year-over-year increase.
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H1 Adjusted EBITDA:Rs 236.4 crore ($25.4 million), up 51% year-over-year, with a 20.1% margin.
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H1 Adjusted Net Profit:Rs 138.7 crore ($14.9 million), a 54.4% year-over-year increase, with an 11.8% margin.
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H1 Adjusted EPS:Rs 11.7, up 54.3% year-over-year.
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ACV Bookings:Trailing 12-month ACV bookings reached $82.9 million in Q2, compared to $82.3 million in Q1.
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Utilization:Slightly increased to 80.5%-81%, within the company's standard band.
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DSO:Billed DSO remained at approximately 55-56 days, with billed plus unbilled at about 75 days.
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Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue crossed Rs 600 crore for the first time, with a 17.7% YoY growth in dollar terms and 30.2% in rupee terms.
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Adjusted EBITDA margin improved to 20.1%, a 281 basis points YoY increase, driven by operational leverage and favorable exchange rates.
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Strong AI-led deal wins across telecom, financial services, insurance, and ad tech, showcasing a differentiated AI-first approach.
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Utilization rate ticked up to 80.5%-81%, indicating better asset sweating from prior AI investments.
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Client concentration improved with top client and top 10 client contributions rising to 6% and 24.4%, respectively.
Negative Points
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Adjusted net profit declined 17.1% QoQ due to a one-time currency hedging benefit in Q1 and realized exchange losses in Q2.
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SG&A expenses increased by Rs 23.8 crore QoQ, driven by higher sales and marketing spend, impacting near-term profitability.
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Trailing 12-month ACV bookings remained nearly flat QoQ at $82.9 million, indicating potential slowdown in new deal momentum.
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Effective tax rate rose to 31% due to non-deductibility of intangible amortization from acquisitions, higher than normalized 28-29%.
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Other income turned negative due to exchange losses on forward contracts, adding volatility to quarterly earnings.
Q & A Highlights
Q: Can you indicate some puts and takes on the SG&A uptick during the quarter, and what is the outlook for full-year organic growth? Also, what is the current percentage of GCC revenues and how are the margins in that business? A: Nitesh Bansal (MD & CEO) explained that the SG&A increase is a deliberate investment in sales and marketing, including hiring a CRO, expanding sales bandwidth, and launching the new brand identity and AI studio, Exigo.ai. Regarding growth, he noted that while the company does not provide formal guidance, the trailing 12-month numbers indicate positive momentum, with bookings from the first half converting into revenues in the second half. On GCC, he stated that while the percentage of revenue is not separately disclosed, it continues to be a significant growth vector, establishing the company's AI differentiation with large clients.
Q: Despite organizational changes and senior hires, organic growth appears muted. When can we expect a revival in growth? A: Nitesh Bansal (MD & CEO) clarified that the company has consistently shown positive organic growth quarter-over-quarter, with wins exceeding project closures. He highlighted that the company achieved an 18% year-on-year revenue increase without any real headcount change, demonstrating improved quality of engagements and revenue per employee. He expressed confidence that as the market adopts AI-led delivery, the company will accelerate its organic growth and take more wallet share from competitors.
Q: The TTM ACV bookings were flattish quarter-on-quarter. Is there a delay in decision-making or macro-related discretionary spending cuts? A: Nitesh Bansal (MD & CEO) stated that neither factor is the primary cause. He noted that the trailing 12-month wins show the company is winning at least as much as before, and that Q2 of the previous year had several large deal wins that are now being replaced by similarly large wins this year. He remains optimistic about the organic growth scenario due to the promising deal sizes.
Q: Can you provide some subjective commentary on productivity gains, given that salary costs have come down quarter-on-quarter despite a wage hike? A: Nitesh Bansal (MD & CEO) attributed the productivity gains to the use of AI in delivery. He cited that through the Exigo.ai studio and the Optima AI platform, the company is delivering almost 2x productivity and 55% gains in turnaround time for customers. This AI-driven efficiency is reflected in the revenue growth achieved without a corresponding increase in headcount or costs.
Q: When do you expect constant currency revenue growth to return to the 3-4% range, and what needs to fall into place? A: Nitesh Bansal (MD & CEO) stated that the biggest factor is the decision cycles of clients. He expressed confidence that with the reusable assets, reference stories, and experience gained from AI-led transformations, the company will start seeing consistent growth in that range. The focus remains on building the pipeline and effectively converting it into revenue.
Q: How has wallet share increased in your top 50 clients, and what is driving the expansion? A: Nitesh Bansal (MD & CEO) attributed the wallet share increase to focused mining efforts led by dedicated go-to-market leaders. The main themes driving this are AI-led modernization, where the company leverages its understanding of legacy challenges to build proactive propositions, and AI-led business operations in sectors like BFSI, where deep domain understanding of process challenges is creating significant discussion and growth.
Q: What kind of additional deals are you getting through the Novigo acquisition, and are you still looking at other inorganic opportunities? A: Nitesh Bansal (MD & CEO) explained that the Novigo acquisition has significantly accelerated the company's agentic business operations offerings, leveraging Novigo's deeper understanding of enterprise landscapes and business flows in industries like insurance, banking, and travel. On future acquisitions, he stated the company maintains an organic plus inorganic growth thesis and remains vigilant for opportunities that offer differentiated capabilities and value, but the current focus is on fully leveraging the Novigo acquisition.
Q: Is there any deflation in contract value due to AI, and do you see this effect going down further? A: Nitesh Bansal (MD & CEO) distinguished between "AI deflation" and "AI monetization." He noted that because the company does not have multi-year contracts or year-on-year renewals, it avoids the deflationary pressures that other IT service providers face. Instead, AI-based productivity is built into the company's AI-first delivery methodology, allowing it to charge a premium for delivering AI-led productivity, which has resulted in improved margins and revenue productivity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
