Hexaware Technologies Limited – Investor Presentation Summary

Key Operational Highlights

  • Closing Headcount: 34,506 with QoQ net addition of 708 employees (179 net addition in IT)
  • Voluntary Attrition for IT: 11.2%
  • Q2CY26 Utilization Rate for IT: 84.8% (improved by 80 bps due to exclusion of platform employees)
  • Expanded Talent Footprint to Colombia and added GIFT City to India footprint
  • Continue to launch 1 new AI service per month
  • Built 65 parsers in Zero License platform with several deals in pipeline
  • Plan to host AI day on August 21st, 2026 in Chennai Campus

Key drivers of operational performance: AI transformation initiatives, global hunting strategy expansion, and talent footprint expansion

Segment-wise Performance

Vertical Split Performance (USD terms):
  • Financial Services: +1.1% QoQ, +1.4% YoY
  • Healthcare & Insurance: +6.8% QoQ, +18.9% YoY
  • Manufacturing & Consumer: +3.5% QoQ, +17.9% YoY
  • Professional Services: +13.3% QoQ, -3.4% YoY
  • Travel & Transportation: +1.0% QoQ, -14.5% YoY
  • Technology, Products & Platforms: +3.1% QoQ, +4.5% YoY
Geographic Split Performance (USD terms):
  • Americas: +2.9% QoQ, +3.5% YoY
  • Europe: +7.0% QoQ, +10.9% YoY
  • Asia Pacific: +14.1% QoQ, +24.8% YoY
Service Line Split Performance (USD terms):
  • IT Services & Others: +5.2% QoQ, +7.0% YoY
  • BPS Services: -1.8% QoQ, -0.5% YoY

Financial Highlights

Revenue: USD 405.4M | INR 38,452M

  • USD: +4.4% QoQ; +6.1% YoY
  • INR: +6.4% QoQ; +17.9% YoY
  • Constant Currency: +4.4% QoQ; +6.3% YoY

Profitability:

  • EBIT: 13.6% (+68 bps QoQ, -102 bps YoY vs adjusted EBIT)
  • EBIT absolute: USD 55.3M (+9.8% QoQ, -1.3% YoY)
  • Reported Profit: USD 34.9M (-5.3% QoQ, -21.1% YoY)
  • Basic EPS: INR 5.41 (-6.2% QoQ, -13.4% YoY)
  • Reported EBITDA Margin: 14.5%
  • Adjusted EBITDA Margin: 14.1%

Cash:

  • Closing cash balance as of June 30, 2026: USD 176M (includes restricted and MF investments)
  • LTM Operating Cash Flows: INR 16,754M
  • LTM OCF to Reported Profit: 124.7%
  • DSO (Days Sales Outstanding): 39 days billed + 39 days unbilled

Geographical Revenue Split

Revenue by Geography (USD terms):

  • Americas: USD 298M (73.6% of total)
  • Europe: USD 81M (19.9% of total)
  • Asia Pacific: USD 26M (6.5% of total)

Revenue by Geography (INR terms):

  • Americas: INR 28,294M (73.6% of total)
  • Europe: INR 7,669M (19.9% of total)
  • Asia Pacific: INR 2,489M (6.5% of total)

Balance Sheet Snapshot

As of June 30, 2026 (INR million):

  • Property, plant and equipment and intangible assets: 10,826
  • Right-of-use assets: 6,191
  • Goodwill: 37,710
  • Trade receivables and unbilled revenue: 32,845
  • Cash and cash equivalents: 16,596
  • Total Assets: 1,15,757
  • Total Equity: 67,094
  • Total Liabilities: 48,663

Capex & Cash Flow Health

  • Capital Expenditure: INR 775M (Q2CY26)
  • Operating Cash Flow: INR 3,928M (Q2CY26)
  • Net cash outflow: INR (3,794)M (Q2CY26)
  • Payment towards acquisition of business: INR (2,787)M
  • Dividend paid: INR (5,181)M

Strategic & R&D Initiatives

  • AI Transformation: Scaling programs to infuse AI in all current customers with AI champion SPOCs
  • Zero License platform with 65 parsers built, becoming primary conversation driver along with SDLC
  • Partnership strategy across three layers: Vertical Products/Platforms, Domain models, Foundation models
  • Published 1st AI Customer Impact Series Book with case studies
  • Global Hunting transformation led by Shantanu, Param and Vijay focusing on large deal creation and team expansion

Industry Trends & Business Environment

  • Tokenomics becoming center-stage for customers, impacting IT labor spend budgets
  • Macro environment worsening with delay in deal ramp affecting growth guidance
  • Increased deal momentum in >$10M legacy modernization programs
  • New category of AI Partner selection deals emerging

Management Commentary & Growth Outlook

Revenue Outlook:

  • Reduced CY26 guidance to 6-7% growth range (including 50 bps from CP rebadging deal)
  • Implies 2.7% CQGR at mid-point

Vertical Outlook for CY26:

  • Healthcare & Insurance, Banking and Manufacturing & Consumer expected to lead growth
  • Professional Services and Financial Services to follow
  • Travel & Transportation expected to lag due to macro conditions

Margin Outlook:

  • Reiterating EBIT margin guidance of 13.0%-14.0%

Deal Updates:

  • Q2 witnessed strong deal momentum across consolidation, outsourcing, and transformation programs
  • Consolidation deal in another Top 15 customer, down to 3 strategic vendors
  • First two wins in AI Partner selection category in Q2
  • Multiple wins in Zero License across 3 archetypes

ESG and Sustainability Updates

  • Ecovadis Assessment: Gold medal with score of 82 (top 5% globally, 98th percentile)
  • S&P Global CSA: Score of 83/100 (97th percentile), featured in yearbook
  • CDP assessment: Improved to "B" for Climate Change & Water Security
  • Committed to near-term, long-term, and Net Zero targets approved by SBTi
  • Sustainability achievements: 24% GHG reduction from base year 2023, 83% renewable electricity usage, 60% water neutrality, zero waste to landfill achieved