Financial Performance
Hexaware Technologies reported Q2CY26 revenue of USD 405.4 million (INR 38,452 million), representing a 4.4% increase quarter‑on‑quarter and a 6.1% rise year‑on‑year; on a constant‑currency basis revenue grew 4.4% QoQ and 6.3% YoY. EBIT for the quarter was USD 55.3 million, delivering an EBIT margin of 13.6%, which is up 68 basis points QoQ but down 102 basis points YoY; in absolute terms EBIT rose 9.8% QoQ while falling 1.3% YoY. Profit after tax (PAT) amounted to USD 34.9 million, a decline of 5.3% QoQ and 21.1% YoY, with basic earnings per share of INR 5.41, down 6.2% QoQ and 13.4% YoY.
Operational Metrics
The company’s headcount stood at 34,506 employees at quarter end, reflecting a net addition of 708 staff, of which 179 were added in the IT services line. Voluntary attrition in the IT segment was 11.2%, and the IT utilization rate improved to 84.8% after a change in calculation methodology that excluded platform‑based employees, adding 80 basis points to the utilization figure. Days sales outstanding (DSO), including billed and unbilled amounts, was 78 days, with billed DSO at 39 days. The operating cash flow to reported profit ratio for the trailing twelve months was 124.7%. Cash and cash equivalents, including restricted cash and mutual‑fund investments, were USD 175 million as of 30 June 2026.
Client and Segment Highlights
Hexaware added one new client in the USD 20 million‑plus LTM revenue category, raising the total number of such customers to 16. Revenue concentration among the top ten customers was 35.7% on an LTM basis. By vertical, revenue grew 1.1% QoQ in Financial Services, 6.8% QoQ in Healthcare and Insurance, 3.6% QoQ in Manufacturing and Consumer, 13.3% QoQ in Professional Services, 3.9% QoQ in Banking, while Travel and Transportation declined 1.0% QoQ and Technology, Products & Platforms fell 3.1% QoQ. Geographically, revenue increased 2.9% QoQ in the Americas, 7.0% QoQ in Europe, and 14.1% QoQ in Asia‑Pacific.
Key Wins
The quarter’s notable wins included an AI‑for‑Business solution for a leading German biotechnology firm, a zero‑license engagement with a capital‑markets institution, an AI‑led middle‑office transformation for a US financial services company, a legacy‑modernisation project for a UK music‑copyright organization, an outsourcing and transformation deal with a London‑based public university, a digital ITO contract with a major non‑bank lender in ANZ, an outsourcing and transformation engagement with a large fintech player in APAC, and a CRM transformation programme for a global clinical‑research company.
Management Commentary
CEO R. Srikrishna highlighted strong growth despite a challenging industry environment and emphasized rapid AI‑lab innovation, launching a new offering each month. CFO Vikash Jain noted that the quarter marked the first ERP go‑live, describing it as a major transformation milestone and underscoring revenue growth, margin expansion, and robust cash conversion.
Forward‑Looking Statements
The release contains standard forward‑looking statements covering growth prospects, competition, talent acquisition, contract execution risks, client concentration, regulatory and geopolitical factors, and other uncertainties that could cause actual results to differ materially.