Synopsis
Hexaware Technologies reported a 7.5% year-on-year net profit increase to Rs. 351.6 crore in Q1 CY26, exceeding street expectations. Revenue grew 12.6% year-on-year to Rs. 3,613 crore, driven by strong performance in Europe and the banking sector. The company reiterated its full-year revenue growth guidance of 7.6%.Revenue for the quarter stood at Rs. 3,613 crore, gaining 12.6% on-year basis while it rose 3.9% quarter-on-quarter, delivering a positive surprise to the street. In constant currency terms, revenue grew 3.2% YoY, although sequentially it declined by 0.3%.
In dollar terms, revenue for the quarter stood at $388.5 million. Brokerages on average expected revenue to decline between 0.5% and 1% sequentially in constant currency terms.
Hexaware reports financial results according to the calendar year.
“The most defensible moat in the AI world is trust in relationships with customers. Our customers trust us to be their AI transformation partner to bring the power of AI to all facets of their IT and business. This represents a significant growth opportunity, and we are well poised to accelerate growth through 2026,” said chief executive officer R Srikrishna.
The company reiterated its guidance of 7.6% revenue growth for the calendar year. “The outlook is underpinned by the ramp-up of previously won large deals, complemented by strong conversion from recent wins, positioning us well for improved growth momentum through the year,” the company noted.
Revenue growth for Hexaware was led by Europe, which gained 11.6% You in the first quarter, while Americas and Asia Pacific gained 2.5% and 9.8% respectively. Among verticals, banking led growth with a 21.1% YoY gain, while manufacturing and healthcare grew little over 13% each. Technology and the travel verticals declined, down 23.5% and 7.5%, respectively.
Operating margins, a key metric for IT firms, expanded by 570 basis points sequentially to reach 13% for the first quarter. However, it contracted by 133 basis points on-year basis.
The company had a marginal reduction of 46 employees in the quarter, taking its headcount down to 33,798. Attrition for the quarter stood at 11.1%, marginally higher compared to the 11% in the previous quarter.
