Europe Macro Remains Challenging
European operations showed slight moderation in Q1 due to OEM demand challenges from Asia/China dependence and model year delays. Vendor consolidation opportunities exist but recovery will be gradual.
LTTS / Q1-FY27 / risks
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Tech Segment Underperformance Extended
A planned medical program concluded and another startup was delayed, causing Tech margin compression to 11.5%. While Q2 recovery is expected, the segment is not projected to return to its historical 34% revenue share.
Client-Specific Decision Delays
Analyst raised concerns about deal right-shifting; management attributed delays to client-specific factors and European vacation patterns rather than broad-based macro issues, though decision cycles remain unpredictable.
Other Income Pressure from Forex
Other income declined sharply to ₹14.7 crore (vs previous quarter) primarily due to forex losses. Management expects this run-rate to persist given headwinds from rupee depreciation impacts.