Hexaware Technologies Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Published 4 Aug 2026 | IT - Software | Market Cap: ₹34.9K Cr

Expect calendar year 2026 to be better than 2025, with growth resuming after short-term headwinds. ERP-related savings are expected but will be used primarily to invest in growth rather than immediate margin expansion.

From Hexaware Technologies Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Price

₹532

Market Cap

₹34.9K Cr

P/E Ratio

24.6

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Hexaware Technologies Ltd — Quarterly revenue & net profit

Revenue Net Profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹3.6K Cr, net profit ₹352 Cr.

Full financials →

📊 Revenue & Sales Performance

→Expect calendar year 2026 to be better than 2025, with growth resuming after short-term headwinds.
→Pipeline is the largest ever (>US$3 billion), indicating strong future deal flow.
→Legacy modernization deals are growing with three material-scale deals in progress for the future.
→Short-cycle and momentum deals are picking up, complementing growth beyond large consolidation deals.
→Professional Services headwinds are expected to end by Q4, turning into a growth driver in 2026.
→Banking vertical showing sharp recovery and is expected to lead future quarter-on-quarter and year-on-year growth.
→High-Tech sector anticipated for rapid growth over the next few years, especially with leadership and new vertical creation.
→CyberSolve acquisition in IAM space expected to contribute growth of about 15%.
→Vibe coding and AI solutions launched to deliver faster and cheaper application building, supporting volume expansion.
→Overall growth driven by increased volumes enabled by AI and new service offerings, balancing early cycle efforts.

📈 Profitability & Margins

→ERP-related savings are expected but will be used primarily to invest in growth rather than immediate margin expansion.
→Full impact of ERP savings not yet realized as implementation is ongoing.
→Margin expansion seen with a 30 bps QoQ improvement, with 154 bps YoY expansion; full-year margin guidance narrowed slightly to 17.1-17.2%.
→Legacy modernization and increased volumes driven by AI expected to contribute to future growth.
→FY26 (calendar year 2026) is anticipated to be better than FY25, with growth drivers including recovery in Professional Services and banking verticals.
→Some short-term headwinds like furloughs and government shutdowns expected to create near-term pressure but will not impede longer-term growth.
→Acquisition of CyberSolve and domain AI solutions are strategic growth enablers expected to improve earnings and EPS.
→Visa transfer restrictions pose short-term growth limitations but are temporary and industry-wide.

🏗️ Capital Expenditure Plans

- Acquisition of CyberSolve completed for a total consideration of US$66 million, with an upfront payout of US$35 million and the balance linked to next 3 years of performance. - CyberSolve brings critical IAM (Identity and Access Management) capabilities, a key growth area within the security ecosystem. - Payouts for the acquisition are performance-linked, indicating a strategic investment focused on capability build and growth. - The company mentions "judicious use from a capital perspective" with the acquisition at a right valuation. - No other specific capex or capital investment announcements mentioned directly. - Focus remains on investing ERP-related savings into growth rather than margin expansion, suggesting strategic reinvestment rather than heavy capex spend. - OCF to EBITDA ratio of 80% on LTM basis reflects strong cash flow to support investments. In summary, the key current strategic capital investment highlighted is the CyberSolve acquisition aimed at expanding cybersecurity capabilities.

💰 Fundraising & Capital Structure

The provided transcript from the document "1311.pdf" does not mention any plans for current or future fundraising through debt or equity. Key points related to financials include: - Acquisition of SMC with an upfront payment of about US$45 million, funded without specifying additional financing. - Acquisition of CyberSolve for about US$66 million, with payments linked partly to future performance. - Strong cash balance of US$228 million after acquisitions. - No explicit comments on plans to raise funds via new debt or equity. - Focus seems to be on organic growth and strategic acquisitions funded through internal resources and performance-linked payments. - No mention of new fundraising rounds or plans to issue equity or take on new debt. Hence, no information on new fundraising through debt or equity is disclosed in the discussed sections.

📋 Order Book & Pipeline

→The overall pipeline is the largest ever, exceeding US$3 billion.
→Pipeline size increased partly due to decision delays in Q1 and Q2, with more decisions expected in Q4.
→There are multiple decent-sized momentum deals back on the table for closure.
→Two large consolidation deals are in the pipeline for next year, expected to add to growth.
→Legacy modernization deals are growing, with three material-scale deals currently in advanced stages (two RFPs and one sole-source).
→New deals in consolidation, tech modernization, and outsourcing categories were won in Q3.
→Q4 is expected to see several deal closures, though some near-term seasonality and government shutdown-related headwinds persist.
→Growth forecast for calendar year 2026 is expected to be better than 2025, with further details to be provided next quarter.

Key Metrics

What Hexaware Technologies Ltd's management said in earlier quarters

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Frequently Asked Questions

What were Hexaware Technologies Ltd Q2 FY26 results?

What is Hexaware Technologies Ltd share price analysis?

Hexaware Technologies Ltd currently shows a neutral. The stock trades at a P/E of 24.6 with a market cap of ₹34,865 Cr. Investors should review the full earnings analysis for detailed insights.

Is Hexaware Technologies Ltd planning capital expenditure?

Acquisition of CyberSolve completed for a total consideration of US$66 million, with an upfront payout of US$35 million and the balance linked to next 3 years of performance.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.