Hexaware Technologies Q2 FY26 results: net profit ₹369.90 crore

How did Hexaware Technologies perform in Q2 FY26?

Hexaware reported consolidated revenue of ₹3,484 crore for Q2 FY26, up 6.8% from ₹3,261 crore in Q1 FY26. EBITDA rose 48.7% to ₹601.30 crore from ₹404.40 crore, while EBITDA margin increased 4.9 percentage points to 17.3% from 12.4%.

Profit declined sequentially. Consolidated net profit was ₹369.90 crore, down 2.6% from ₹379.70 crore, and basic EPS fell 2.6% to ₹6.09 from ₹6.25. Profit before tax was ₹496.70 crore, up 6.1% from ₹468.30 crore, and there was no exceptional item.

The board approved the standalone and consolidated audited results for the quarter ended September 30, 2025. On the standalone basis, revenue was ₹1,947.3 crore and profit after tax was ₹270.6 crore. No year-ago quarterly comparison was provided.

Which businesses drove the quarter?

Financial Services reported revenue of ₹1,032.5 crore and EBIT of ₹331.7 crore, with an EBIT margin of 32.1%. Healthcare & Insurance reported revenue of ₹776.0 crore and EBIT of ₹245.5 crore, with an EBIT margin of 31.6%.

Manufacturing and Consumer reported revenue of ₹565.3 crore and EBIT of ₹218.4 crore, with an EBIT margin of 38.6%. Hi-Tech and Professional Services reported revenue of ₹533.8 crore and EBIT of ₹209.8 crore, with an EBIT margin of 39.3%.

Banking reported revenue of ₹303.0 crore and EBIT of ₹106.7 crore, with an EBIT margin of 35.2%. Travel and Transportation reported revenue of ₹273.0 crore and EBIT of ₹117.6 crore, with an EBIT margin of 43.1%. Year-ago segment comparisons were not provided.

What else did the company announce?

The board approved the acquisition of 100% stakes in CyberSolve (I) Private Limited, Identity And Access Solutions LLC, IT Glizerz LLC, and Identity and Access Solutions Canada, Inc. The estimated total consideration was $66 Million, comprising $34.5 Million upfront and $31.5 Million linked to performance for FY26, FY27 and FY28.

The board also gave in-principle approval to merge wholly owned and step-down subsidiaries in India, the US and the Netherlands to simplify the group structure. The proposal remains subject to approval of the scheme of arrangement, regulatory approvals and other administrative formalities. The same-day filings did not announce a dividend or fund raise.

What did Hexaware Technologies' management say?

Management said demand was improving and the company had its largest-ever pipeline, but expected the pipeline to decline in Q4 following expected deal decisions. It also identified the Government shutdown and restrictions on visa transfers as short-term headwinds. High Tech & Professional Services declined 10.1% YoY amid budget cuts and project closures, with recovery expected to take 1-2 quarters.

Management guided to a CY25 reported EBITDA margin outlook of 17.1%-17.2% post merit increase. It said AI was being used across the software development lifecycle, while legacy modernisation and domain-AI solutions remained growth priorities. Management also said the CyberSolve acquisition expanded its identity and access management and cybersecurity capabilities.

Management highlighted customer concentration, with the top five customers contributing 26.0% and the top 20 contributing 50.3% of LTM revenue. It also set environmental priorities of net zero Scope 1 and 2 greenhouse-gas emissions by 2040 and 70% of campus electricity use from renewable sources by 2030. No separate analysts’ questions were included in the supplied excerpt.

How did Hexaware Technologies shares react?

After the filing appeared after market hours, the stock fell 4.2% after 5 minutes, 4.5% after 15 minutes and 4.1% after 30 minutes. It closed 3.6% below its pre-results close on the reaction day, against a 0.5% fall for the industry median. The Nifty Midcap 150 rose 0.5%.

By the next day's close, the stock was 3.6% lower from its pre-results close, while the industry median was down 0.4% and the Nifty Midcap 150 was up 0.9%. By the fifth session, the stock was down 1.3% from the pre-results close, compared with a 2.1% rise for the industry median and a 1.9% rise for the Nifty Midcap 150.

Earlier results-day moves were negative on 24 July 2025 and 7 March 2025, at 10.8% and 4.0%, respectively. On 28 April 2025, the stock rose 3.8%.

How did other Computers - Software & Consulting companies do?

A total of 59 Computers - Software & Consulting companies filed for the quarter, with a median revenue growth of 8.5%. The counts of peers growing slower and faster than Hexaware were not provided, and 37 of 58 companies with comparable profit data reported higher profit.