Hexaware Technologies Q1 FY26 results: net profit ₹379.70 crore

How did Hexaware Technologies perform in Q1 FY26?

Hexaware Technologies reported consolidated revenue of ₹3,261 crore for Q1 FY26, up 1.6% from ₹3,208 crore in Q4 FY25. EBITDA fell 23.4% to ₹404.40 crore from ₹527.80 crore, while the margin declined by 4.1 percentage points to 12.4% from 16.5%. Total expenses were ₹2,952 crore and other income was ₹160 crore.

Profit before tax rose 7.3% to ₹468.30 crore from ₹436.30 crore in Q4 FY25. Net profit increased 16.1% to ₹379.70 crore from ₹327.10 crore, and basic EPS rose 16.2% to ₹6.25 from ₹5.38. The profit margin was 11.6%, up 1.4 percentage points from 10.2%.

No year-ago quarter comparison was provided. On the standalone basis, revenue was ₹1,817.8 crore and profit after tax was ₹328.1 crore. The company reported no exceptional item for Q1 FY26, compared with no exceptional item in Q4 FY25.

What do the balance sheet and cash flow show?

At 30 June 2025, total assets were ₹9,298.1 crore, compared with ₹8,994.5 crore at 31 December 2024. Total equity was ₹5,801.9 crore, compared with ₹5,354.6 crore, while cash was ₹1,908.6 crore against ₹1,976.6 crore. The company had no borrowings at either balance sheet date.

Trade receivables were ₹2,225.9 crore, higher than ₹1,975.5 crore at the previous balance sheet date. Trade payables were ₹830.4 crore, lower than ₹914.0 crore. There were no inventories at either date.

For the year-to-date period ended 30 June 2025, operating cash flow was ₹456.5 crore, investing cash flow was negative ₹106.1 crore, financing cash flow was negative ₹441.2 crore, and capital expenditure was ₹88.0 crore. A year-earlier year-to-date cash flow comparison was not provided.

Which businesses drove the quarter?

Financial Services reported revenue of ₹978.4 crore and EBIT of ₹323.8 crore in Q1 FY26, with an EBIT margin of 33.1%. Healthcare & Insurance reported revenue of ₹674.1 crore and EBIT of ₹266.3 crore, with an EBIT margin of 39.5%.

Hi-Tech and Professional Services reported revenue of ₹564.9 crore and EBIT of ₹231.7 crore, with an EBIT margin of 41.0%. Manufacturing and Consumer reported revenue of ₹469.0 crore and EBIT of ₹168.3 crore, with an EBIT margin of 35.9%.

Travel and Transportation reported revenue of ₹293.0 crore and EBIT of ₹126.7 crore, with an EBIT margin of 43.2%. Banking reported revenue of ₹281.3 crore and EBIT of ₹110.7 crore, with an EBIT margin of 39.4%. Year-ago segment revenue, EBIT and growth figures were not provided.

What else did the company announce?

The board approved the audited standalone and consolidated financial results for the quarter and half year ended 30 June 2025, together with the auditors’ report, and the company filed the results and an integrated financial filing with the exchanges. The filing also included a press release on the results.

The board approved a change in the registered office address effective 1 August 2025 and the incorporation of a wholly owned subsidiary in Colombia, with an initial investment of up to USD 2 million in one or more tranches. No dividend or fund-raising approval was stated in the same-day filings.

What did Hexaware Technologies' management say?

Management said Q2 CY25 revenue was softer than anticipated because of delayed customer decision-making, and lowered its CY25 revenue growth expectations from the prior quarter. The company expected Q3 to grow sequentially on a constant-currency basis, but below its earlier view, as four mega consolidation deals remained in progress and macro conditions affected demand.

Management maintained CY25 reported EBITDA margin guidance of 17.1%-17.4%, guided utilisation to 83%-84%, and expected gross IT headcount additions at the upper end or higher of the 1,500-1,800 range. It guided the full-year CY25 effective tax rate to 24% and said a moderated merit increase would take effect on 1 July.

Management said the SMC acquisition added global capability centre capability, a $22 million revenue base and EPS accretion from day one. It also said macro and tariff uncertainty was delaying customer decisions, the timing of four mega consolidation deals remained uncertain, and a $9 million provision had been booked for a European client, with legal recovery in process.

CEO R Srikrishna said the $3 billion CY29 revenue ambition remained unchanged. CFO Vikash Jain said the 15 bps one-time headwind was net of items including the Softcrylic reversal and the European provision, and said the company aimed to pull reported EBITDA up by over 7-8%. The transcript available in the filing did not provide a separate set of analyst questions and answers beyond the discussion.

How did Hexaware Technologies shares react?

Hexaware’s shares fell 1.6% in the first five minutes after the filing, 2.7% after 15 minutes and 3.8% after 30 minutes. On the reaction day, the stock closed 10.8% below the previous close; by the next day's close it was down 9.4% from that pre-results close, and by the fifth session it was down 15.6%.

Earlier results-day moves were mixed: the stock rose 3.8% on 28 April 2025 and fell 4.0% on 7 March 2025. On the quarter covered here, the base price was ₹797.0, against a previous close of ₹826.8.

How did other Computers - Software & Consulting companies do?

Fifty-three Computers - Software & Consulting peers were compared, with a median revenue growth of 7.5%. Of the peers with available profit comparisons, 41 grew profit. The figures cover the peer set as of 6 November 2026, while Hexaware's reported quarter was Q1 FY26.