Hexaware Technologies has announced robust financial results for the third quarter of 2025, along with a strategic acquisition to enhance its cybersecurity offerings. The global IT solutions provider continues to demonstrate resilience and growth in a challenging macroeconomic environment.

Q3 2025 Financial Highlights

Hexaware reported impressive year-over-year growth in its Q3 2025 results:

The company's revenue growth in constant currency terms stood at 5.20% year-over-year and 3.40% quarter-over-quarter.

Segment Performance

Hexaware's performance varied across different verticals:

• Financial Services: Led growth with a 12.20% year-over-year increase
• Healthcare and Insurance: Showed strong performance with 9.40% year-over-year growth
• Manufacturing and Consumer: Grew by 8.00% year-over-year
• Banking: Increased by 9.90% year-over-year
• High Tech and Professional Services: Faced challenges with a 10.10% year-over-year decline

Strategic Acquisition: CyberSolve

In a significant move to bolster its cybersecurity capabilities, Hexaware announced the acquisition of CyberSolve, a specialist in identity and access management (IAM) solutions. The acquisition, valued at $66.00 million, includes an upfront payment of $34.50 million and performance-linked earnouts of up to $31.50 million.

CyberSolve brings to Hexaware:

• 230+ IAM specialists
• 20+ IAM technology alliances
• 650+ implementations across various sectors

This strategic acquisition positions Hexaware as a full-spectrum cybersecurity partner, tapping into the rapidly expanding IAM market, which is expected to reach approximately $100 billion by 2033.

Management Commentary

R. Srikrishna, CEO of Hexaware, stated, "We delivered solid growth in a difficult macro. More importantly, we continue to invest in our future on several dimensions. We acquired specialist capability in IAM through CyberSolve, created a new vertical in Technology, Products and Platforms with a talented new leader, and launched multiple new domain offerings in AI."

Vikash Jain, CFO, added, "I am pleased to report an EBITDA of 17.5% for the quarter, reflecting a 30 bps improvement quarter-on-quarter, driven by disciplined operational efficiencies. Our strong cash generation continues, with OCF to EBITDA conversion at 80% on an LTM basis."

Operational Metrics

• Closing headcount: 33,590, with a net addition of 1,054 employees over the last twelve months
• Voluntary attrition rate for IT: 11.40%
• Utilization rate for IT: 83.80%
• Days Sales Outstanding (DSO): 73 days, with billed DSO at 37 days

Outlook

While Hexaware has not provided specific forward-looking guidance, the company's strategic moves, including the CyberSolve acquisition and investments in AI capabilities, indicate a focus on long-term growth and market positioning. The company's ability to maintain strong margins and cash generation in a challenging environment suggests resilience in its business model.

Investors and analysts will be watching closely to see how Hexaware leverages its new cybersecurity capabilities and navigates the evolving tech landscape in the coming quarters.

Hexaware Technologies Limited , a prominent IT services company, has announced that its stepdown subsidiary, Softcrylic Technologies Inc., based in Canada, will undergo voluntary liquidation. This strategic move, effective from October 29, 2025, is part of the company's efforts to streamline its corporate structure.

Key Details of the Liquidation

The company disclosed this material event in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Here are the essential details of the liquidation:

Financial Impact

The liquidation of Softcrylic Technologies Inc. is expected to have minimal impact on Hexaware Technologies' overall financial position. According to the company's disclosure:

These figures, based on the financial year ending December 31, 2024, indicate that Softcrylic Technologies Inc. contributed marginally to Hexaware Technologies' group revenue and net worth.

Rationale and Implications

The voluntary liquidation is described as an initiative to rationalize the group structure of Hexaware Technologies. This move aligns with common corporate strategies to simplify operations, reduce administrative overhead, and potentially improve overall efficiency.

It's important to note that the liquidation process is subject to the completion of certain administrative actions. Hexaware Technologies has stated that they received confirmation of the liquidation on October 29, 2025.

Market Response

As this news represents a relatively minor change in Hexaware Technologies' overall structure, with minimal financial impact, it may not significantly affect the company's market position or investor sentiment. However, it does demonstrate the company's ongoing efforts to optimize its global operations and corporate structure.

Investors and market watchers will likely view this as a routine corporate action aimed at enhancing operational efficiency. As always, stakeholders are advised to consider this development in the broader context of Hexaware Technologies' overall business strategy and performance.