Hexaware Technologies Ltd Q3 FY26 Earnings Analysis
Published 3 Jul 2026 | IT - Software | Market Cap: ₹34.9K Cr
Price
₹570
Market Cap
₹34.9K Cr
P/E Ratio
24.6
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Earnings Summary
Revenue growth for CY26 is expected to be better than CY25's reported 7.6%, reaffirming a long-term growth thesis of low-teens to mid-teens. Revenue growth for CY26 is expected to be better than CY25's 7.6%, with a long-term thesis of low- to mid-teens growth intact.
📊 Revenue & Sales Performance
- →Revenue growth for CY26 is expected to be better than CY25's reported 7.6%, reaffirming a long-term growth thesis of low-teens to mid-teens.
- →Growth acceleration is anticipated each quarter post-Q1, despite Q1 being seasonally weak due to calendar effects and client-specific issues.
- →Deal ramp-ups and consolidation deals, especially in big tech and banking, are expected to drive growth, with some deals still work in progress (WIP).
- →Vertical-specific growth: Banking and Healthcare & Insurance (H&I) to lead growth, with Manufacturing & Consumer (M&C) returning to growth; Professional Services to grow but at a lower rate than company average.
- →The pipeline and bookings entering CY25 are materially better compared to CY24, supported by a newly formed hunting team becoming productive.
- →AI-related productivity impacts are acknowledged but balanced by new growth opportunities in SaaS replacement and legacy modernization platforms.
📈 Profitability & Margins
- →Revenue growth for CY26 is expected to be better than CY25's 7.6%, with a long-term thesis of low- to mid-teens growth intact.
- →Deal ramp-ups, especially from large consolidation deals, will drive growth, with acceleration expected from Q2 and Q3 after a weak Q1.
- →Margins (EBIT) for the year are expected at 13-14%, lower than the current year due to deal ramp-ups and rebadging components in H1. Margins should improve sharply in H2, potentially exceeding the current year by year-end.
- →EPS for Q4 adjusted for one-timers was around 6.15, with a one-time labor code impact of $12.5 million in Q4 and an expected 20 bps margin impact in CY26.
- →Cash generation is strong with $235M+ closing cash, no debt, and improved cash conversion ratios.
- →Overall, expect stronger revenue growth with improving margins and EPS recovery in the later part of CY26 and CY27.
🏗️ Capital Expenditure Plans
- →The document does not explicitly mention specific current or future capex or strategic capital investments.
- →However, there is mention of investments in areas such as building new teams (e.g., a new hunting team formed in the second half of CY24 to drive future bookings and revenue in CY26).
- →Strategic acquisitions have been made, such as SMC and CyberSolve, which enhance capability and market reach (e.g., CyberSolve expanding cybersecurity services and SMC providing GCC presence and visibility).
- →Focus on AI-related offerings and platforms, including legacy modernization and "Zero License" SaaS skill initiatives, indicating strategic investments in technology and innovation.
- →Continued headcount additions (10th straight quarter with 254 resources added in Q4), suggesting investment in human capital for growth and deal ramp-ups.
- →Shift to EBIT-based margin reporting from Q1 with expected margins of 13-14%, indicating operational adjustment but no direct mention of capex spend.
💰 Fundraising & Capital Structure
📋 Order Book & Pipeline
- →The orderbook and pipeline at the end of CY25 is materially better than at the end of CY24.
- →A new hunting team was built in the second half of CY24, coming together by end of CY24, allowing for better productivity.
- →Improved bookings in the second half of CY24 are expected to translate into revenues through CY26.
- →Deal wins in Q4 included a very large consolidation deal in big tech and a significant scale GCC deal.
- →The deal pipeline has crossed $4 billion for the first time.
- →CyberSolve acquisition closed mid-Q4, with expected positive contribution over the next quarters.
- →Continued deal ramp-ups planned, with a strong pipeline and good visibility on mid-single digit sequential growth for 2Q and 3Q of CY26.
Key Metrics
Frequently Asked Questions
What were Hexaware Technologies Ltd Q3 FY26 results?
Revenue growth for CY26 is expected to be better than CY25's reported 7.6%, reaffirming a long-term growth thesis of low-teens to mid-teens. Revenue growth for CY26 is expected to be better than CY25's 7.6%, with a long-term thesis of low- to mid-teens growth intact.
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?
The document does not explicitly mention specific current or future capex or strategic capital investments.
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.