Hexaware Technologies Limited concluded its Q4CY25 earnings conference call on February 05, 2026, providing comprehensive insights into the company's financial performance and strategic outlook. The company reported mixed quarterly results while maintaining optimism for improved growth in CY26.

Q4CY25 Financial Performance

The company's Q4CY25 results reflected both achievements and challenges across key financial metrics. Revenue reached $389.0 million, representing a sequential decline of 1.5% from Q3CY25 but demonstrating year-over-year growth of 4.5% compared to Q4CY24.

For the full year CY25, the company achieved revenue of $1,537.4 million, marking a 7.6% increase from CY24's $1,428.9 million. The annual EBITDA reached INR 22,997 million with a margin of 17.1%, compared to INR 19,051 million and 15.9% margin in CY24.

Business Segment Performance and Strategic Developments

The company's revenue distribution across verticals shows Financial Services leading with 30.1% share, followed by Healthcare and Insurance at 20.6%. Manufacturing and Consumer contributed 16.3%, while High Tech and Professional Services accounted for 14.8% of total revenue.

Geographically, Americas remained the largest market contributing 74.2% of revenue, while Europe accounted for 19.4% and Asia Pacific contributed 6.4%.

AI Strategy and Innovation Leadership

CEO R Srikrishna emphasized the company's comprehensive AI strategy, stating that the goal is for "every single day, every single client, the work we do is positively impacted by AI." The company is implementing AI across four key areas: building AI into all platforms, creating new AI-enabled services, workforce retraining, and process transformation.

The company launched three new AI services during the quarter, including what management claims is the world's first completely AI-first global multilingual help desk in production, serving 33,000 employees. Additionally, the company introduced a "Zero License" offering, enabling clients to exit license software over time by replacing SaaS products with Agentic AI solutions.

Major Deal Wins and Pipeline Growth

The quarter witnessed significant deal momentum with the company's pipeline crossing $4 billion for the first time. Key wins included a large consolidation deal with a big tech company, significant banking sector engagements, and the world's largest pet insurance company contract covering IT integration and modernization.

CY26 Outlook and Margin Guidance

Management expects CY26 reported revenue growth to exceed CY25's 7.6% growth rate, despite anticipated Q1 headwinds from seasonal factors and client-specific issues. Banking and Healthcare & Insurance verticals are expected to lead growth, while Manufacturing & Consumer and Professional Services are projected to trail company average.

The company will transition to EBIT reporting from Q1 CY26, providing guidance of 13.0% - 14.0% EBIT margin. Management indicated that Q1 CY26 EBIT would be lower due to seasonal factors and deal ramp-ups, with H2 EBIT expected to exceed H1 performance as new deals normalize.

Operational Metrics and Workforce

The company's total headcount reached 33,844 employees as of Q4CY25, with voluntary attrition for IT services at 11.0% and utilization rate at 80.8%. The company added 254 resources during the quarter, marking the 10th consecutive quarter of headcount additions in preparation for deal ramp-ups.

Hexaware Technologies has announced its Q3 financial results, presenting a mixed yet encouraging performance with revenue growth and significant EBITDA improvement, despite facing challenges in net profitability. The IT services company demonstrated operational efficiency gains while navigating margin pressures.

Financial Performance Overview

The company's Q3 results reflect a nuanced performance across key financial metrics, with notable improvements in operational profitability measures alongside continued revenue momentum.

Revenue and EBITDA Performance

Hexaware Technologies achieved consolidated revenue of ₹34.8 billion in Q3, representing a year-over-year growth of 10.5% from ₹31.5 billion in the corresponding quarter of the previous year. More significantly, the company delivered strong operational performance with EBITDA surging 22.4% to ₹6.0 billion compared to ₹4.9 billion in the previous year.

Margin Expansion Success

The company demonstrated improved operational efficiency with EBITDA margin expanding to 17.28% from 15.55% in the previous year, marking a substantial improvement of 173 basis points. This margin expansion indicates enhanced cost management and operational leverage despite the challenging business environment.

Profitability Dynamics

While EBITDA performance was robust, the company experienced a decline in consolidated net profit, which decreased to ₹2.9 billion from ₹3.2 billion in Q3 of the previous year. This 9.4% year-over-year decline suggests that non-operational factors or higher depreciation and interest costs impacted the final bottom-line performance.

Performance Analysis

The Q3 results showcase Hexaware Technologies' operational strength with significant improvements in core profitability metrics. The company successfully grew its top line by over 10% while achieving remarkable EBITDA growth of 22.4% and margin expansion, indicating effective cost optimization and business efficiency improvements during the reporting period.