HEXT
Large CapHexaware Technologies Limited
IT
Hexaware Technologies is a global digital and technology services company with AI at its core, leveraging technology to deliver innovative solutions for digital transformation. It serves 30+ Fortune 500 clients with 33,798 employees across 30+ countries, embedding AI into its solutions and platforms.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 22/100margin compression · Rev +13% YoY · PAT +8% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,613 Cr | +12.6% | +3.9% |
| EBITDA | ₹571 Cr | +8.1% | +51.1% |
| Operating margin | 16.0% | +0 bps | +500 bps |
| PAT | ₹352 Cr | +7.7% | +20.6% |
| PAT margin | 9.7% | -45 bps | +134 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Hexaware reported Q1CY26 revenue of USD 388.5 Mn, flat QoQ but up 4.6% YoY. Adjusted EBIT margin was 13.0%, a slight QoQ dip of 6 bps and 133 bps YoY. Basic EPS grew 20.5% QoQ and 7.2% YoY to INR 5.77.
Q1CY26 results show flat sequential revenue in USD terms, but strong EPS growth. Management reiterates CY26 revenue growth floor of 7.6% and EBIT margin guidance of 13.0%-14.0%, supported by strong deal momentum and AI-driven opportunities. The AI pivot is central to future growth.
Revenue by vertical
Latest issuer-disclosed distribution across 7 reported categories.
AI-driven Opportunities
Addressing 12 new archetypes of opportunities/revenues due to AI and proactively offering productivity solutions in SDLC, Data, and IT Operations.
Strong Deal Momentum
Q1 witnessed strong deal momentum with wins across consolidation, outsourcing, and transformation programs.
AI in SDLC
AI in SDLC is identified as the single largest driver of deal activity and differentiation.
Large Deal Wins
Closed Phase II win with a large global bank, expected to translate into meaningful revenue contribution in H2 CY26.
AI-driven Demand
AI is creating new revenue opportunities and driving deal activity across various IT operations and business functions.
Consolidation Deals
Multiple wins in consolidation programs, including a large global bank, a European bank, and a global professional services firm.
Ramp-up of Large Deals
Outlook is underpinned by the ramp-up of previously won large deals, complemented by strong conversion from recent wins.
Vertical Specific Weakness
Technology, Products & Platforms revenue declined 23.5% YoY in USD terms. Travel & Transportation declined 7.5% YoY and is expected to lag due to macro factors.
Geographic Weakness
Asia Pacific revenue declined 6.6% QoQ in USD terms.
Increased DSO
Billed Days Sales Outstanding (DSO) increased to 44 days in Q1CY26 from 38 days in Q4CY25.
Intense Competition
Intense competition in IT services, including factors that may affect cost advantage.
Talent Management
Ability to attract and retain highly skilled professionals, alongside potential wage increases.
Technological Disruptions
Technological disruptions and innovations such as Generative AI, which could impact existing service lines.
Client Concentration
Revenue contribution from Top 5 customers was 25.6% (LTM Q1CY26), indicating concentration risk.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
QoQ comparison is crucial for IT services to assess sequential momentum, deal ramp-ups, and immediate operational efficiency changes. YoY comparison provides a view of underlying growth trends and seasonal impacts.
Closing Headcount
33,798 total headcount, with a QoQ net reduction of 46. IT headcount saw a net addition of 124, marking the 11th straight quarter of IT headcount addition.
Voluntary Attrition (IT)
Voluntary attrition for the IT service line was 11.1% on a trailing twelve-month basis.
Utilization Rate (IT)
Q1CY26 Utilization Rate for IT was 82.6%, up from 80.8% QoQ.
10Mn+ Customers
Added 2 more customers in the $10Mn+ category (LTM basis), taking the total count to 34 compared to 32 in the previous quarter.
CY26 Revenue Guidance
Reiterating the CY26 baseline revenue growth floor of 7.6%, underpinned by large deal ramp-ups and recent wins.
CY26 Margin Guidance
Reiterating the EBIT margin guidance of 13.0%–14.0% for CY26, with margins expected to improve through the year, especially in H2.
Vertical Growth Outlook
Banking, Healthcare & Insurance, and Manufacturing & Consumer are expected to lead growth for CY26, with Professional Services and Financial Services to follow.
AI Day Plan
Plan to hold an AI day shortly after Q2CY26 results to discuss AI strategy and offerings.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth (USD CC) | -0.3% QoQ; +3.2% YoY | Acceleration towards the reiterated CY26 baseline revenue growth floor of 7.6%. |
| Adjusted EBIT Margin | 13.0% | Improvement towards the 13.0%-14.0% guidance range and an exit rate higher than CY26. |
| 10Mn+ Customers | 34 (LTM basis) | Continued additions to this category, indicating successful client mining and expansion. |
| DSO - Billed | 44 days | Stabilization or reduction in DSO, indicating improved collection efficiency. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
44NeutralSMA20 -19.6% / mo
Technical chart
HEXTweekly · 3Y-36.2%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 47.
- SMA20 falling (~24.4% over last month) — short-term momentum negative.
- RSI(14) at 47 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 41% off 52W high · 30% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 36.4%.
- Quality contributes 16/20 to the score.
Main drags
- Valuation is weaker at 9/30; verify the latest quarterly trend.
- Growth is weaker at 15/25; verify the latest quarterly trend.
- Cash flow is weaker at 6/10; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 97th percentile of the scored universe and 96th percentile within IT. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 74.3%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 96th pctile, median 68 · Large: 89th pctile, median 74
80 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.3%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.6%.
- ▸11 years of positive FCF.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 21.70
- P/B
- 5.05
- EV/EBITDA
- 14.67
- Market Cap
- 31776.00Cr
Profitability
- ROE
- 24.90%
- ROCE
- 30.10%
- ROA
- 12.78%
- Dividend Y
- 2.21%
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- 18.00%
- Revenue 3Y
- 13.00%
- EPS 3Y
- 18.00%
Balance Sheet
- Debt/Equity
- 0.11
- Interest Coverage
- 17.15×
- Altman Z
- 6.99
- Book Value
- 103.00
Cash Flow
- FCF Yield
- 2.60%
- FCF Positive Y
- 11/5
- OCF
- 1739.00 Cr
- EPS TTM
- 22.85
Shareholding
- Promoter Hold
- 74.30%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 24%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.