Hexaware Technologies Q2 FY27 results: net profit up 16.1% to ₹429.40 crore, revenue up 12.9%

How did Hexaware Technologies perform in Q2 FY27?

Hexaware Technologies reported consolidated revenue of ₹3,933 crore for the September 2026 quarter, up 12.9% from ₹3,484 crore in Q2 FY26 and 2.3% from ₹3,845 crore in Q1 FY27. EBITDA was ₹566.20 crore, down 5.8% year on year and 6.5% sequentially, and the EBITDA margin narrowed to 14.4% from 17.3% a year earlier and 15.7% in the previous quarter.

Profit before tax rose to ₹543.40 crore from ₹496.70 crore a year earlier and ₹440.70 crore in the previous quarter. Net profit was ₹429.40 crore against ₹369.90 crore in Q2 FY26 and ₹330.20 crore in Q1 FY27, while profit attributable to owners was ₹430.90 crore. Basic EPS was ₹7.06, up from ₹6.09 a year earlier and ₹5.41 in the previous quarter. On a standalone basis, revenue was ₹2,174.1 crore and profit after tax was ₹201.8 crore.

What changed in Hexaware Technologies' costs and profit?

Total expenses rose 16.1% year on year to ₹3,479 crore, outpacing the 12.9% rise in revenue. Employee cost was ₹2,299 crore, up ₹315.60 crore or 15.9% from ₹1,984 crore, and other expenses were ₹1,068 crore, up ₹169 crore or 18.8% from ₹898.80 crore. Finance costs fell 2.3% to ₹25.40 crore and depreciation fell 2.0% to ₹87.10 crore.

Other income rose to ₹149.40 crore from ₹10.30 crore a year earlier, a difference of ₹139.10 crore. The quarter carried an exceptional item of ₹59.70 crore as a charge, against no exceptional item in Q2 FY26 and Q1 FY27. Tax was ₹114 crore, down ₹12.80 crore or 10.1% from ₹126.80 crore. The filings do not state the reasons for the movements in the cost lines or other income.

Against the previous quarter, employee cost rose 1.4% to ₹2,299 crore and other expenses rose 9.7% to ₹1,068 crore. Other income was ₹149.40 crore against ₹50.10 crore, while finance costs fell 22.6% to ₹25.40 crore and tax rose 3.2% to ₹114 crore. The PAT margin rose to 10.9% from 8.6% in Q1 FY27, while the EBITDA margin fell to 14.4% from 15.7%.

How did the first half of FY27 go?

For the first half of FY27, Hexaware reported revenue of ₹11,391.3 crore, up 14.5% from ₹9,952.2 crore in H1 FY26. Total income rose 13.7% to ₹11,512.3 crore from ₹10,126.9 crore. Profit before tax was ₹1,456.9 crore, up 4.0% from ₹1,401.3 crore.

Profit after tax for the first half was ₹1,111.2 crore against ₹1,076.7 crore a year earlier, a rise of 3.2%. Basic EPS was ₹18.25, compared with ₹17.72 in H1 FY26. The board approved the unaudited standalone and consolidated results for the quarter and nine months ended 30 September 2026 on 28 October 2026.

How has Hexaware Technologies done over the last 8 quarters?

Net profit was ₹429.40 crore in Q2 FY27, above ₹330.2 crore in Q1 FY27 but below the ₹379.7 crore recorded in Q1 FY26. The lowest profit in the series was ₹291.6 crore in Q3 FY26. The EBITDA margin was 14.4% in Q2 FY27, down from 15.7% in Q1 FY27 and from a peak of 17.3% in Q2 FY26, and from a low of 10.9% in Q3 FY26.

Which businesses drove the quarter?

Financial Services was the largest segment, with revenue of ₹1,144.1 crore, up 10.8% from ₹1,032.5 crore, and EBIT of ₹340.9 crore against ₹331.7 crore, giving an EBIT margin of 29.8%. Healthcare & Insurance reported revenue of ₹892.2 crore, up 15.0% from ₹776.0 crore, with EBIT of ₹328.5 crore and a margin of 36.8%.

Manufacturing and Consumer reported revenue of ₹629.9 crore, up 11.4% from ₹565.3 crore, and EBIT of ₹221.5 crore, a margin of 35.2%. Banking recorded revenue of ₹372.0 crore, up 22.8% from ₹303.0 crore, with EBIT of ₹161.1 crore and a margin of 43.3%. Travel and Transportation revenue was ₹270.3 crore, down 1.0% from ₹273.0 crore, with EBIT of ₹119.4 crore and a margin of 44.2%.

Technology, Products and Platforms reported revenue of ₹88.0 crore and EBIT of ₹30.6 crore, with a margin of 34.8%. Professional Services reported revenue of ₹536.6 crore and EBIT of ₹203.8 crore, with a margin of 38.0%. The filings did not give year-ago revenue or EBIT for these two segments.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 30 September 2026, along with the limited review report of the statutory auditors. It also approved the appointment of Mr. Arjun Shah and Mr. Gregory Michael Zeluck as additional directors in the capacity of Non-Executive Non-Independent Director with effect from 29 October 2026, subject to shareholder approval, and recorded the resignations of Mr. Neeraj Bharadwaj and Mr. Julius Genachowski with effect from the close of business hours on 28 October 2026.

As part of entity rationalisation, the board approved the slump sale of Tech SMC Square India Private Limited from Hexaware Technologies Inc, USA to Tech SMC Squared (GCC) India Private Limited, and the merger of Identity and Access Solutions Canada Inc. with Hexaware Technologies Canada Limited and IT Glitterz LLC with Hexaware Technologies Inc, USA. It approved incorporation of a wholly owned subsidiary in Mauritius with an initial investment of up to USD 01 million, and voluntary liquidation of Mobiquity BV in the Netherlands, subject to applicable approvals. No dividend or fund raise was part of the filings.

What did Hexaware Technologies' management say?

On the 5 November 2026 earnings call, management withdrew the Q4CY26 revenue outlook after Q3 growth of 1.6% in dollar terms missed expectations on GSE softness and delayed deal closures. Management expects the normal seasonal sequential decline in Q4 from furloughs and fewer working days, and said CY26 adjusted EBIT margin guidance was narrowed to 13–13.5%, with seasonal effects and merit increases creating headwinds in Q4.

CEO Vivek Jetley said a 90-day reset would review clients, pipeline, delivery, investments and forecast discipline before strategy is set. Management said Banking, TPP and APAC drove growth, while travel and transportation and one cost-optimising GSE client remained soft, and that the company remained debt-free, with nearly $200 million in cash and investments and cash conversion near 110%. Management also expects the Netherlands restructuring to add about 40 bps to annual operating margins from Q4CY26 and maintained a normalised full-year effective tax rate of 25–26%.

Jetley said: "Now, as we transition into the role, and as I'm starting off this quarter, we will not be providing an outlook for the current quarter, Q4CY26." He added: "We remain on track to meet our previously stated goal of 250 FTEs and 1,000 AI architects by the middle of next year." CFO Vikash Jain said: "On a go forward basis, we expect this to improve our annual Operating margins by 40 bps every year." Risks flagged by management included merit increases, higher onshore mix, capability spending, GSE cost optimisation, travel demand and large-deal timing.

How did Hexaware Technologies shares react?

Hexaware filed the results after market on 28 October 2026. From the price when the filing appeared, the stock was up 2.1% after 5 minutes and 1.4% after 15 minutes, before turning to a fall of 0.1% after 30 minutes. On the reaction day, it fell 5.8% from the previous close of ₹569.0, against a 0.6% median rise for the industry's other stocks.

By the next day's close, the stock was 12.1% below its pre-results close, against a 0.2% fall for the sector median and a 0.1% fall for the Nifty Midcap 150. By the fifth session, it was 11.6% below the pre-results close, while the sector median was up 1.6%. The stock's move was 6.5 percentage points below the sector median on the reaction day, 12.0 percentage points below by the next close and 13.2 percentage points below by the fifth session.

Earlier results days saw falls of 6.9% on 29 July 2026, 0.8% on 6 May 2026 and 7.9% on 4 February 2026, alongside a 10.8% fall on 24 July 2025 and a 4.0% fall on 7 March 2025. The 28 April 2025 reaction was a rise of 3.8%.

How did other Computers - Software & Consulting companies do?

Among the 40 Computers - Software & Consulting companies compared for this quarter, the median revenue growth was 14.6%, higher than Hexaware's 12.9% year-on-year rise. Of the peers whose revenue growth was compared, 18 grew more slowly than Hexaware and 22 grew faster. Among the 41 peers for which profit was compared, 24 reported higher profit.