Hexaware Technologies is an IT services and digital transformation company serving Financial Services, Healthcare & Insurance, Manufacturing & Consumer, Banking, Travel and other verticals, reporting into a sector where AI-led pricing deflation and a weak US macro are testing growth. This print will speak to whether the reduced 6-7% CY26 revenue growth guidance holds under a brand-new CEO, and whether the promised H2 recovery in the 13.0-14.0% EBIT margin range is on track.
| Results date | October 28, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | INR 38,452 Mn (Rs. 3,845.2 Cr), +6.4% QoQ and +17.9% YoY in INR |
| Previous quarter PAT | INR 3,302 Mn (Rs. 330.2 Cr), (6.1%) QoQ and (13.0%) YoY |
| Previous quarter EBITDA margin | 14.5% (reported, USD basis) |
| Market cap | Rs. 36,068.33 Cr |
| CMP | Rs. 590.8 |
The Board of Hexaware Technologies is scheduled to meet on October 28, 2026 to approve the Q3 CY26 (September quarter) unaudited results. The same day marks the effective date of the CEO transition from Srikrishna Ramakarthikeyan to Vivek Jetley.
The company declared a 2nd interim dividend of Rs. 9.50 per share (950%) on Rs. 1 face value shares on October 20, 2026, with a record date of October 26 and payment on November 7. The implied payout is approximately Rs. 580.47 Cr, taking the aggregate across the two FY26 interims to Rs. 14.00 per share.
The September quarter print arrives at a hinge point for Hexaware: the CY26 revenue growth guidance was cut to 6-7% (from the earlier 7.6% floor) at the previous quarter on delays in deal ramp-ups and a worsening macro-economic environment, and the results call will be Vivek Jetley's first as CEO, effective October 28, 2026. The margin story is equally in focus, with reported EBIT margin at 13.6% in Q2CY26 against the reiterated 13.0-14.0% CY26 guidance and management's stated path of H2 better than H1 with an exit rate above the full-year average. Cost and currency dynamics cut both ways this quarter: the rupee weakened from 94.3325/USD on June 18 to 96.73 by October 9, a realization tailwind on the 73.6%-Americas revenue book, while the October 1 wage hikes (described by management as modest) and a continuing 20 bps labor-code headwind land from Q3. Sector demand offers a modestly supportive backdrop, with Indian tech revenues up 4.4% YoY in Q1 FY27 per nasscom and Hexaware's own Q1 constant-currency growth of +6.3% YoY running ahead of that print, though AI-driven scope deflation on renewals — management itself estimated a 20% to 40% reduction in scope for the same work — remains the structural drag. The upcoming call is expected to cover guidance continuity under the new CEO, the EBIT margin bridge, and AI commercialization updates including the Anthropic partnership and Zerovity platform.
CY26 revenue guidance under the new CEO: The prior 7.6% growth floor was cut within one quarter, so the 6-7% guide faces its first test on Vivek Jetley's first call.
EBIT margin path and H2 recovery promise
Vertical follow-through and GSE client stabilization
PAT quality and working capital
AI commercialization and governance overhang
Management has said AI will create new growth avenues but is currently a dampener on revenue growth due to productivity baked in for 2-3 quarters, and estimated a 20% to 40% reduction in scope for the same work on renewals. The CEO has asserted Hexaware is 'way better' than peers on early AI initiatives, citing its legacy modernization platform, vibe coding, and Zero License offerings.
The 13.0%-14.0% EBIT margin guidance for CY26 has been reiterated across the Q3 FY26, Q4 FY26 and Q1 FY27 presentations. Q2CY26 reported EBIT margin was 13.6%, and management has guided for margins to improve through the year, particularly in H2, with an exit rate higher than the CY26 average.
CFO Vikash Jain said that at an EBITDA level the acquisition's margins are 'largely comparable in the same zip code' as the organic side. From an EPS perspective it is initially marginally dilutive because of acquisition accounting, but he said it will 'be EPS accretive very soon'.
The CY26 revenue growth guidance was reduced to 6-7% from the earlier 7.6% growth floor, attributed to delays in deal ramp-ups and a worsening macro-economic environment. The revised guidance includes 50 bps from a CP rebadging deal and implies a 2.7% CQGR at the mid-point, which management said it is confident of delivering.
Srikrishna Ramakarthikeyan resigned as CEO and Whole-time Director effective October 28, 2026, after 12 years in the role, moving to a Senior Advisor position. Vivek Jetley, previously President at EXL with over 25 years of experience, has been appointed CEO for a 4-year term.