Hexaware Technologies has been named a Top 15 Sourcing Standout by Information Services Group (ISG), a global AI-centered technology research and advisory firm, for the second quarter of 2026. The recognition places Hexaware among the leading providers in the Breakthrough 15 category both globally and specifically for the Americas region. The ranking is based on annual contract value (ACV) won over the preceding 12 months, as reported in the 2Q 2026 Global ISG Index™. This acknowledgment highlights the company’s growing market share and client confidence in its AI-first digital and IT services offerings.

The ISG Index™, now in its 95th consecutive quarter, provides an independent quarterly review of sourcing industry data and trends. It categorizes top commercial providers into four groups: Big 15 (revenues exceeding $10 billion), Building 15 (revenues between $3 billion and $10 billion), Breakthrough 15 (revenues between $1 billion and $3 billion), and Booming 15 (revenues below $1 billion). These categories cover providers in traditional sourcing markets as well as those competing in as-a-service markets, including infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) sectors across the Americas, EMEA, and Asia Pacific regions.

Regional and Sectoral Growth Drivers

Hexaware’s inclusion in the index reflects strong demand across its priority industries, including financial services, banking, insurance, healthcare, and manufacturing. The Americas remained a key region for new business acquisition, characterized by expanded enterprise client relationships and sustained investment in AI-native offerings. These investments span cloud computing, data management, and application modernization. The company’s proprietary platforms—RapidX®, Tensai®, Amaze®, and Agentverse™—have facilitated client adoption of outcome-based delivery models and embedded artificial intelligence into core operations.

R. Srikrishna, CEO & Executive Director at Hexaware, stated that the recognition reflects client confidence in the company’s ability to bridge the gap between current business states and desired outcomes. He noted that over the past year, Hexaware teams have focused on removing friction across enterprises, from platform modernization to operations, while integrating AI into everyday business processes. The continued recognition is attributed to the global workforce’s expertise and client-first approach.

Market Intelligence Context

Paul Reynolds, Chief Research Officer of ISG, described the ISG Index™ as the authoritative source for marketplace intelligence on the global technology and business services industry. He emphasized that Hexaware continues to establish itself as a leading and growing player based on its volume of business relative to other industry providers. The data underlying this assessment is submitted by Hexaware to ISG each quarter, ensuring an independent verification of market performance.

What the Numbers Show

The placement in the Breakthrough 15 category indicates that Hexaware’s annual contract value falls within the $1 billion to $3 billion revenue band defined by ISG for this tier. This positioning suggests a significant scale of operations compared to smaller players in the Booming 15 category, yet distinct from the larger enterprises in the Big 15 and Building 15 tiers. The specific mention of the Americas region highlights geographic concentration in new business wins, suggesting that North American clients are increasingly adopting Hexaware’s AI-driven solutions for critical operational transformations.

Hexaware Technologies reported a decline in consolidated net profit to ₹3.3 billion for Q1FY26, down from ₹3.8 billion in the year-ago quarter, despite top-line growth. The Mumbai-based IT services firm recorded revenue of ₹38.5 billion for the quarter ended June 30, 2026, up from ₹32.6 billion in Q1FY25. The divergence between revenue expansion and profitability contraction highlights increased cost pressures within the organization during the period.

The Board of Directors approved the unaudited financial results on July 29, 2026. The results were filed with the Bombay Stock Exchange and National Stock Exchange of India Limited on July 31, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Newspaper clippings of the financial results were published in Business Standard and Navshakti on July 31, 2026.

Revenue and Profitability Metrics

While absolute earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to ₹6.05 billion from ₹5.6 billion year-on-year, the EBITDA margin narrowed significantly. This indicates that operating costs grew at a faster rate than revenues, impacting overall operational efficiency.

Margin Compression Analysis

The contraction in EBITDA margin from 17.27% to 15.74% is a key concern for investors. Although the company managed to grow its top line by nearly 18%, the inability to translate this growth into proportional operating profit suggests structural cost increases or pricing pressures. The net profit decline of ₹0.5 billion further underscores the challenge in maintaining profitability amidst aggressive revenue expansion.

What the Numbers Show

The data reveals a classic volume-versus-margin trade-off. Hexaware Technologies successfully captured market share or expanded deal sizes, driving an ₹5.9 billion increase in revenue. However, the associated cost base expanded disproportionately, eroding the bottom line. For stakeholders, this signals that while the growth trajectory remains intact, management must address cost discipline to restore margin health in subsequent quarters.