Hexaware Gets Kotak's 'Buy' Initiation As Its Positioned For Long Innings In IT Services
While Hexaware may not be the fastest-growing IT firm, it is expected to be one of the most consistent, with a steady performance across business cycles, Kotak said.

Kotak Institutional Equities has initiated coverage on Hexaware Technologies Ltd. with a ‘buy’ rating and a target price of Rs 940, valuing the stock at 30 times March 2027E EPS.
The brokerage’s confidence stems from Hexaware’s consistent performance across revenue growth, margin delivery, and free cash flow generation, which together make the company a standout in the mid-tier IT services space.
Kotak forecasts a 12.6% US dollar revenue CAGR and a 21.9% INR EPS CAGR over calendar years 2024–27. While Hexaware may not be the fastest-growing IT firm, it is expected to be one of the most consistent, with a steady performance across business cycles.
Over the past decade, the company has achieved a CAGR of 13% in revenue and 13.6% in net profit, alongside 14.1% free cash flow growth—even after acquisitions.
Hexaware has significantly strengthened its fundamentals in recent years, expanding its client relationships, deepening its service capabilities, and balancing its growth between new client acquisition and existing account mining.
Top clients typically consume nearly all of its five core service lines, while the number of large accounts has steadily increased, pointed the brokerage. Its internally developed technology platforms also support efficient service delivery and customer engagement, with client satisfaction reflected in above-median Net Promoter Scores.
On the innovation front, Hexaware has kept pace with generative AI advancements, thanks to its early investments in automation and platform-based delivery models. Initiatives like ‘Shrink IT, Grow Digital’ and ‘Automate Everything’ laid the foundation for its capabilities in data, AI, and cloud.
Partnerships with major cloud and automation providers, combined with its RapidX platform launched in 2023, enable it to deliver cutting-edge solutions in legacy modernisation and software development lifecycle optimisation.
That said, key risks remain. Leadership continuity—especially at the CEO level—is critical for execution. Revenue is concentrated, with 94% from developed markets, 58% from BFSI and healthcare, and 36% from top 10 clients. Exposure to economically sensitive sectors like travel and manufacturing (24% of revenue) adds an element of macro risk, while the usual industry headwinds—like AI disruption, insourcing, and currency volatility—apply as well.