Hexaware Technologies has filed a disclosure under Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing an update on its ongoing legal proceedings against a client based in Europe. The disclosure, dated May 09, 2026, is made in continuation of earlier intimations, including one dated December 20, 2025.

Key Developments in the Legal Proceedings

Subsequent to Hexaware Technologies filing a complaint before the United States District Court for the Southern District of New York, the company has learned of significant developments on the client's end. The update, received from the company's lawyers on May 08, 2026, outlines two critical developments:

• The European client's insolvency proceedings have commenced in a court in Germany.
• The client has secured recognition of these insolvency proceedings in the United States, with the intent to protect itself against ongoing litigation in the US.

The following table summarises the key details of the disclosed developments:

Company's Response and Financial Position

Hexaware Technologies has stated that it is taking appropriate steps to pursue legal remedies before the appropriate authority in light of these developments. Importantly, the company has clarified that there is no additional financial impact on the company, as adequate provisions have already been made in its financial statements in an earlier year.

The disclosure has been made in compliance with the SEBI LODR Regulations and will also be hosted on the company's official website at www.hexaware.com . The intimation was signed by Gunjan Methi, Company Secretary and Compliance Officer of Hexaware Technologies.

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. Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the financial results were subsequently published on May 08, 2026 in Business Standard (English) and Navshakti (Marathi).

Financial Performance Overview

The following table summarises the key consolidated financial metrics for Q1CY26 compared to the preceding and year-ago quarters:

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:

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:

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.