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.

Hexaware technologies Limited has announced that it has received court approval from Amsterdam, Netherlands for the merger of two of its wholly owned step-down subsidiaries. The merger involves Mobiquity Consulting B.V. as the transferor company being merged into Mobiquity B.V. as the transferee company, effective January 31, 2026.

Merger Details and Financial Overview

The merger consolidates two entities operating in complementary areas of technology-enabled services. Both companies are engaged in providing digital experiences across multiple platforms and strategic technology services to enterprise clients.

Business Operations and Rationale

Both subsidiaries operate in the business of providing effortless digital experiences spanning mobile, web, voice and internet of things on behalf of leading enterprise brands. They offer strategy, experience design, product engineering, cloud and analytics services to help clients drive deeper digital engagement and improve loyalty.

The company stated that the merger will be beneficial to both entities, their respective shareholders and creditors, employees and other stakeholders. Since both companies are under the same control and management and operate in complementary areas of technology-enabled services, the consolidation is expected to streamline operations.

Transaction Structure

The merger does not involve any cash consideration as both entities are fellow subsidiaries under the same corporate structure. The transaction will not result in any changes to the shareholding pattern of the listed entity, as confirmed in the regulatory disclosure.

Regulatory Compliance

Hexaware Technologies made the disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided detailed information as required under the regulations and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

The information has also been made available on the company's website at www.hexaware.com , ensuring transparency and compliance with disclosure requirements for stakeholders and investors.