IT Headcount Addition (consecutive quarters)
11
+11 quarters
11th consecutive quarter of net IT headcount addition, indicating sustained investment in delivery capacity.
HEXAWARETECHNOLOGIES
Information Technology
28 Apr 2026
Hexaware Technologies Ltd — Q4 FY26
Hexaware reported Q1 CY26 revenue of $389M, roughly flat sequentially, with volume growth of $3M offset by $3M in calendar/furlough headwinds.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Hexaware reported Q1 CY26 revenue of $389M, roughly flat sequentially, with volume growth of $3M offset by $3M in calendar/furlough headwinds. EBIT margin improved 570 bps sequentially to 13%, driven by forex tailwinds and operational improvements, though normalized EBIT was flat. Management highlighted strong deal wins, including a large global bank consolidation phase two and a fab-based manufacturer AI deal, underpinning a 7.6% floor growth reaffirmation. AI-driven differentiation in SDLC and IT operations is driving pipeline momentum, with 12 new revenue opportunities identified. Margins are expected to improve through H2, exiting higher than the full-year 13-14% range. Key risk: the GSC client consolidation may remain a drag through the year, with no growth expected from that account until next year.
Key Numbers
Clients >$10M Revenue
34
+2 QoQ
Added two clients to the $10M+ pyramid, reflecting strong account mining and new logo wins.
Utilization Rate
82.6%
+180 bps QoQ
Utilization improved sequentially due to reversal of furlough and leave impacts.
Cash Balance
$220M
flat
Debt-free company with strong cash position, supporting investment and M&A optionality.
Management Guidance
Revenue growth floor of 7.6% for CY26
Management reaffirmed the 7.6% growth floor for the full year, underpinned by deals already won and a strong pipeline.
Management guidance revenueEBIT margin guidance of 13-14% for CY26
Full-year EBIT margin expected in 13-14% range, with improvement through H2 and exit rate higher than full-year average.
Management guidance marginsEffective tax rate 25-26% for CY26
ETR guidance reiterated at 25-26% for the full year.
Management guidance otherSustained growth momentum from Q2 CY26
Management expects growth to become visible from Q2, driven by deal ramp-ups and seasonality reversal, with sustained momentum thereafter.
Management guidance growthKey Risks
GSC client consolidation drag
The large GSC client consolidation program may keep revenue from that account flat or declining through CY26, with no growth expected until next year.
high · analyst_questionAI deflation pressure on volumes
AI-driven productivity improvements could reduce volume of work in existing contracts, though management budgets for this and expects market share gains to offset.
medium · management_commentarySeasonal weakness in Q4
Q4 typically sees seasonal softness due to calendar effects and furloughs, which could temper sequential growth even if absolute revenue remains positive.
medium · data_observationMacro headwinds in travel vertical
Fuel price issues and macro uncertainty are impacting the travel vertical, which may underperform relative to earlier expectations.
low · management_commentaryNotable Quotes
We are hitting a phase of sustained growth.
AI in SDLC is the biggest source of differentiation and the biggest source of deal activity.
We are seeing from clients a willingness of about 10 to 15% gap between productivity gains and economic gains.
Frequently Asked Questions
What was Hexaware Technologies's revenue in Q4 FY26?
Hexaware Technologies reported revenue of ₹3,613 Cr in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Hexaware Technologies management give for FY27?
Revenue growth floor of 7.6% for CY26: Management reaffirmed the 7.6% growth floor for the full year, underpinned by deals already won and a strong pipeline. EBIT margin guidance of 13-14% for CY26: Full-year EBIT margin expected in 13-14% range, with improvement through H2 and exit rate higher than full-year average. Effective tax rate 25-26% for CY26: ETR guidance reiterated at 25-26% for the full year. Sustained growth momentum from Q2 CY26: Management expects growth to become visible from Q2, driven by deal ramp-ups and seasonality reversal, with sustained momentum thereafter.
What are the key risks for Hexaware Technologies in FY27?
Key risks include GSC client consolidation drag — The large GSC client consolidation program may keep revenue from that account flat or declining through CY26, with no growth expected until next year.; AI deflation pressure on volumes — AI-driven productivity improvements could reduce volume of work in existing contracts, though management budgets for this and expects market share gains to offset.; Seasonal weakness in Q4 — Q4 typically sees seasonal softness due to calendar effects and furloughs, which could temper sequential growth even if absolute revenue remains positive.; Macro headwinds in travel vertical — Fuel price issues and macro uncertainty are impacting the travel vertical, which may underperform relative to earlier expectations..
Did Hexaware Technologies meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Hexaware Technologies Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.