NewsHexaware Q1CY26 Revenue USD 388.5 Mn, Up 4.6% YoY; PAT Rises 7.5%; Interim Dividend of INR 8.50 DeclaredHexaware Q1CY26 Revenue USD 388.5 Mn, Up 4.6% YoY; PAT Rises 7.5%; Interim Dividend of INR 8.50 Declared
Hexaware Technologies posted Q1CY26 consolidated revenue of USD 388.5 Mn (INR 36,130 Mn), up 4.6% YoY, with PAT of INR 3,516 Mn rising 7.5% YoY and Basic EPS of INR 5.77. Q4 EBITDA stood at INR 5.97B versus INR 5.28B YoY, with EBITDA margin at 16.53% versus 16.45% YoY. The Board declared an interim dividend of INR 8.50 per equity share, while the company continued corporate restructuring and secured multiple strategic deal wins across verticals.
*this image is generated using AI for illustrative purposes only.
Hexaware Technologies reported consolidated revenue from operations of USD 388.5 Mn (INR 36,130 Mn) for the quarter ended March 31, 2026, marking a 4.6% growth year-on-year (YoY) in USD terms and 12.6% YoY in INR terms. On a quarter-on-quarter (QoQ) basis, revenue declined marginally by 0.1% in USD terms while rising 3.9% in INR terms. In constant currency terms, revenue grew 3.2% YoY and declined 0.3% QoQ. The Board of Directors approved the audited standalone and consolidated financial results at its meeting held on May 06, 2026, with statutory auditors expressing an unmodified audit opinion.
Financial Performance Overview
The following table summarises the key consolidated financial metrics for Q1CY26 compared to the preceding and year-ago quarters:
| Metric: | Q1CY26 | Q4CY25 | Q1CY25 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
| Revenue (USD Mn): | 388.5 | 389.0 | 371.5 | (0.1%) | 4.6% |
| Revenue (INR Mn): | 36,130 | 34,782 | 32,079 | 3.9% | 12.6% |
| EBITDA (INR Bn): | — | 5.97 | 5.28 | — | — |
| EBITDA Margin (%): | — | 16.53% | 16.45% | — | — |
| Reported EBIT (INR Mn): | 4,801 | 2,542 | 4,543 | 88.9% | 5.7% |
| Reported EBIT Margin (%): | 13.3% | 7.3% | 14.2% | 598 bps | -87 bps |
| Profit Before Tax (INR Mn): | 4,728 | 3,255 | 4,363 | 45.3% | 8.4% |
| Reported Profit (INR Mn): | 3,516 | 2,916 | 3,271 | 20.6% | 7.5% |
| Reported Profit Margin (%): | 9.7% | 8.4% | 10.2% | 135 bps | -47 bps |
| Basic EPS (INR): | 5.77 | 4.79 | 5.38 | 20.5% | 7.2% |
Employee benefits expense for Q1CY26 stood at INR 21,457 Mn, up 5.2% QoQ and 15.2% YoY. Other expenses declined 15.4% QoQ to INR 8,965 Mn. Depreciation and amortisation expense was INR 907 Mn, down 26.7% QoQ. Total tax expense for the quarter was INR 1,212 Mn compared to INR 339 Mn in Q4CY25 and INR 1,092 Mn in Q1CY25, with the Q4CY25 figure impacted by deferred tax credits.
Segment and Geography Performance
The company's revenue performance across verticals and geographies in Q1CY26 (in USD terms) is presented below:
| Vertical: | QoQ (%) | YoY (%) |
|---|---|---|
| Financial Services: | (1.8%) | 1.4% |
| Healthcare and Insurance: | 9.8% | 13.5% |
| Manufacturing and Consumer: | (1.6%) | 13.2% |
| Professional Services: | 1.3% | (6.3%) |
| Banking: | (7.8%) | 21.1% |
| Travel and Transportation: | (8.9%) | (7.5%) |
| Technology, Products & Platforms: | (0.4%) | (23.5%) |
| Total Revenue: | (0.1%) | 4.6% |
| Geography: | QoQ (%) | YoY (%) |
|---|---|---|
| Americas: | 0.2% | 2.5% |
| Europe: | 0.9% | 11.6% |
| Asia Pacific: | (6.6%) | 9.8% |
| Total Revenue: | (0.1%) | 4.6% |
Healthcare and Insurance was the strongest-performing vertical on a YoY basis at 13.5%, followed by Banking at 21.1% YoY. Travel and Transportation and Technology, Products & Platforms saw YoY declines of 7.5% and 23.5% respectively. Among geographies, Europe led YoY growth at 11.6%, while Asia Pacific grew 9.8% YoY.
Standalone Financial Highlights
On a standalone basis, Hexaware Technologies reported revenue from operations of INR 19,722 Mn for the quarter ended March 31, 2026, compared to INR 18,596 Mn in Q4CY25 and INR 17,641 Mn in Q1CY25. Standalone profit for the period stood at INR 2,138 Mn versus INR 1,003 Mn in Q4CY25 and INR 2,392 Mn in Q1CY25. Standalone Basic EPS was INR 3.51 (not annualised) for Q1CY26, compared to INR 1.65 in Q4CY25 and INR 3.94 in Q1CY25.
Consolidated Balance Sheet Highlights
The consolidated balance sheet as of March 31, 2026 reflects total assets of INR 1,17,136 Mn compared to INR 1,09,046 Mn as of December 31, 2025. Key balance sheet metrics are presented below:
| Parameter: | Mar'26 (INR Mn) | Dec'25 (INR Mn) |
|---|---|---|
| Total Assets: | 1,17,136 | 1,09,046 |
| Total Equity: | 67,790 | 63,126 |
| Goodwill: | 37,778 | 35,768 |
| Trade Receivables and Unbilled Revenue: | 30,678 | 25,431 |
| Cash and Cash Equivalents (incl. restricted cash and MF investments): | 20,891 | 21,324 |
| Total Liabilities: | 49,346 | 45,920 |
Consolidated Cash Flow Summary
For Q1CY26, net cash used in operating activities stood at INR (76) Mn compared to INR (107) Mn in Q1CY25. Capital expenditure was INR 410 Mn, while net cash used in investing activities was INR (108) Mn. Net cash used in financing activities amounted to INR (540) Mn, resulting in a net cash outflow of INR (724) Mn for the quarter.
Key Operational and Client Metrics
The company reported the following key operational metrics for Q1CY26:
- Closing Headcount: 33,798, with a QoQ net reduction of 46 and 124 net addition in IT
- Voluntary Attrition (IT): 11.1%
- Utilization Rate (IT): 82.6%
- DSO (Billed + Unbilled): 75, of which Billed is 44
- LTM OCF to Reported Profit %: 125.1%
- Cash and Cash Equivalents (including restricted cash and MF investments) as of March 31, 2026: USD 220 Mn
On the client front, Hexaware added two more customers in the USD 10 Mn+ category (LTM basis), taking the total to 34 from 32 in the previous quarter. Top 10 customer revenue concentration stood at 35.9% in Q1CY26 on an LTM basis.
Key Business Wins
During Q1CY26, Hexaware secured several significant deals across verticals:
- Won a digital ITO and cloud migration deal with a premier American audio equipment manufacturer
- Secured the second phase of a consolidation deal with a large global bank
- Won a consolidation deal with a large European bank
- Secured a consolidation deal with a global professional services firm
- Selected by a US-based data storage company for AI-led fab optimization
- Selected by a leading digital workspace platform for Agentic Application Maintenance and Support (AMS)
- Selected by a top-tier American data center company for identity-led cybersecurity
- Secured an opportunity to scale GCC with a leading provider of wealth management and technology solutions
Leadership Commentary
R. Srikrishna, CEO, stated: "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."
Vikash Jain, CFO, added: "Q1 continued to reflect the strength and discipline of our financial engine. We had yet another quarter of strong cash generation, with industry leading LTM OCF to PAT conversion of 125%+. This healthy balance sheet and consistent cash flows enabled us to declare the first interim dividend of ₹8.5 per share, reinforcing our commitment to disciplined capital allocation and shareholder returns."
Dividend and Corporate Updates
On April 27, 2026, the Board of Directors declared an interim dividend of INR 8.50 per equity share of INR 1 each. During the quarter ended March 31, 2026, 113,958 equity shares of face value INR 1 each were issued on exercise of employee stock options. As at March 31, 2026, 1,556,039 treasury shares held by a controlled trust remained outstanding and were excluded from the weighted average share count for EPS computation.
On the corporate restructuring front, Mobiquity Velocity Solutions Inc and Mobiquity Inc were merged into Hexaware Technologies Inc. with effect from January 01, 2026, in the US. Additionally, Softcrylic LLC merged into Hexaware Technologies Inc. subsequent to the quarter end, with effect from May 01, 2026, on receipt of certificate of merger dated May 04, 2026. In the Netherlands, Mobiquity Consulting BV merged into Mobiquity BV with effect from January 01, 2026. In India, the company has filed an application with the National Company Law Tribunal (NCLT) for the merger of Mobiquity Softech Private Limited and Softcrylic Technology Solutions India Private Limited with and into the company, and is awaiting direction from the NCLT.
Regarding litigation, a notice was received from Natsoft Corporation and Updraft LLC for alleged patent infringement and breach of contract, with the plaintiff claiming USD 500 million. The company has filed a motion to dismiss the claim and believes the complaint is without merit, with no expected material financial impact.
Historical Stock Returns for Hexaware Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.58% | +1.21% | +3.47% | -33.91% | -34.16% | -39.76% |
Given the sharp 23.5% YoY decline in the Technology, Products & Platforms vertical and 7.5% drop in Travel & Transportation, what strategic initiatives is Hexaware planning to reverse these trends in the coming quarters?
With the USD 500 million patent infringement lawsuit filed by Natsoft Corporation and Updraft LLC, how might prolonged litigation impact Hexaware's reputation and client acquisition efforts even if the financial exposure is limited?
As Hexaware accelerates its AI transformation positioning and secures Agentic AMS deals, how sustainable is the current 11.1% voluntary attrition rate amid intensifying industry-wide competition for AI talent?
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