Business Process Outsourcing (BPO)/ Knowledge Process Outsourcing (KPO) industry
17 companies · ₹45,462 cr · 5 with AI deep dives · Q1FY27 report
Deal momentum broadens and aggregate margins peak, but AI compresses FTE-based BPM even as cycle turns
- Revenue YoY
- +19.2%
- EBITDA margin
- 17.0%
- +10bps YoY
- Price, 1 year
- -15.2%
- 17% of names up
- P/E vs own 5y
- +12.9%
- 27.1x now
Exhibit 1The quarter in numbers
constant panel of 6 companies above ₹500 cr- Jun 26
- 8,813 cr
- Mar 26
- 7,953 cr
- QoQ
- +10.8%
- Jun 25
- 7,393 cr
- YoY
- +19.2%
- Peak
- 8,813 cr
- vs peak
- 0.0%
- Jun 26
- 17.0%
- Mar 26
- 14.8%
- QoQ
- +220bps
- Jun 25
- 16.9%
- YoY
- +10bps
- Peak
- 17.0%
- vs peak
- 0bps
Breadth: 83% of 6 companies grew revenue year on year (was 83% a quarter earlier) and 67% expanded margin (was 67%).
Exhibit 2What it costs
23.06x - 29.01x across the panel todayThe median name trades at 27.1x, +12.9% against this industry's own 5-year median of 24.0x, and -22.6% against its own peak of 35.0x.
Exhibit 3Structure
₹45,462 creClerx Services Ltd is 41.6% of this industry by market cap. The top 5 are 96.4% and the top 10 are 99.7%.
Exhibit 4Screen
P/E below the sub-industry median of 27.09x, 5y ROCE above its median of 12.66%, and at least 2 growth triggers stated on the latest earnings call.
Which names clear this screen is premium
The screen runs on stated growth triggers from the latest earnings calls - the same guidance data the stock screener reserves for premium. Premium names every company in this industry that is cheap against its own median and has the triggers behind it.
See plans →Exhibit 5Coverage (17 of 17)
Every company here with a deep dive, topped up by market cap. The rest of the industry is in the appendix.
- Mcap
- ₹17,369 cr
- P/E
- 26.2x
- EV/EBITDA
- 13.2x
- ROCE
- 17.9%
- Margin
- 15.3%
- Rev YoY
- +22.9%
- Mcap
- ₹1,476 cr
- P/E
- 34.0x
- EV/EBITDA
- 18.4x
- ROCE
- 10.1%
- Margin
- 26.9%
- Rev YoY
- +129.4%
- Mcap
- ₹37 cr
- P/E
- 32.2x
- EV/EBITDA
- 40.7x
- ROCE
- 6.3%
- Margin
- 24.5%
- Rev YoY
- -16.7%
- Mcap
- ₹24 cr
- P/E
- 6.8x
- EV/EBITDA
- 3.5x
- ROCE
- 24.1%
- Margin
- 20.7%
- Rev YoY
- +12.5%
Exhibit 6What managements said
from this industry's latest earnings calls · as of 2026-06-30Four of five companies reported improved deal momentum. FSL signed four large deals (ACV >$5M) for the sixth consecutive quarter with highest ACV intake in four quarters. eClerx…
- FSL (Q1FY27): “In Q1, we signed four large deals. This is the sixth consecutive quarter of four or more…”
Exhibit 7Outlook
The outlook and what resolves next quarter
Where these managements said things are heading, and the dated, checkable events that would change it. Free with an account - 3 full reports a quarter.
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