Hexaware Technologies Ltd delivered robust Q1CY26 results with profit after tax (PAT) increasing 20% to ₹351.6 crore from ₹291.6 crore in the previous quarter. According to reports from CNBC TV18, dollar revenue remained flat sequentially at $388.5 million compared to $389 million, while constant currency revenue grew 3.2% year-on-year but declined 0.3% sequentially. EBIT margin stood at 13%, remaining flat sequentially and down 133 basis points year-on-year. The company maintained its EBIT margin guidance of 13% to 14% with expectations of improvement through the year, particularly in the second half.
The company's healthcare and insurance vertical emerged as the standout performer, contributing 22.6% of revenue and growing 9.8% sequentially and 13.5% year-on-year. As reported by CNBC TV18, manufacturing and consumer vertical showed strength with 13.2% annual growth despite sequential softness of 1.6%. Financial services, the largest vertical, declined 1.8% quarter-on-quarter but maintained 1.4% annual growth. Banking fell 7.8% sequentially but surged 21.1% annually, while travel and transportation declined 8.9% sequentially and 7.5% annually. The tech, products and platforms vertical declined to 2.3% of revenue with 23.5% annual decline.
The Americas region, which accounts for 75% of revenue, remained flat sequentially, while Europe business grew 0.9% quarter-on-quarter and 11.6% year-on-year. According to CNBC TV18, APAC business declined 6.6% from the previous quarter. The company's closing headcount stood at 33,798 at the end of the quarter, with a net reduction of 46 employees quarter-on-quarter, while IT headcount saw a net addition of 124. Voluntary attrition in IT stood at 11.1%, while utilisation for IT employees was 82.6%.
R. Srikrishna, CEO, emphasized the company's positioning in AI transformation, stating that "the most defensible moat in the AI world is trust in relationships with customers." As reported by CNBC TV18, the company is reiterating its CY26 baseline revenue growth outlook of 7.6%, supported by the ramp-up of previously won large deals and strong conversion from recent wins. Vikash Jain, CFO, highlighted the company's industry-leading LTM OCF to PAT conversion of 125%+, demonstrating strong financial engine performance. For CY26, the company expects banking, healthcare and insurance, and manufacturing and consumer verticals to lead growth, while travel and transportation is expected to lag due to macro conditions.
Shares of Hexaware Technologies Ltd ended the previous session 2.8% up at ₹464.9 apiece, as reported by CNBC TV18. The stock has declined 38.7% this year so far, reflecting broader market challenges. The positive market response reflects investor confidence in the company's strong quarterly performance and reaffirmed growth outlook. The company has reiterated its EBIT margin guidance of 13.0%–14.0% and expects margins to improve through the year, particularly in H2, with an exit rate higher than CY26 levels.
