Hexaware Technologies Ltd.'s September-quarter performance disappointed brokerages, with constant-currency revenue growth slowing to 1.7% sequentially from 4.4% in the previous quarter, below the estimated 2.5%. The company also narrowed its EBIT margin guidance to 13–13.5% from 13–14% earlier and withdrew its CY26 revenue growth guidance.
The lower margin guidance and withdrawal of revenue growth guidance have prompted brokerages to reassess earnings expectations. Kotak Neo expects a sequential revenue decline in Q4 and cut its CY27–CY28 earnings per share estimates by 6.5–7%. Jefferies cited delayed ramp-ups of large deals and expects wage hikes to weigh on margins. Hexaware also announced a leadership change, with Vivek Jetley taking over as chief executive officer from October 28, 2026, while R Srikrishna steps down as CEO and executive director.
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Hexaware Q3 Highlights (QoQ)
- Revenue rose 2.3% sequentially to Rs 3,933 crore from Rs 3,845 crore.
- EBIT declined 8.5% sequentially to Rs 479 crore from Rs 524 crore.
- EBIT margin contracted to 12.2% from 13.6% in the previous quarter.
- Net profit increased 30.6% sequentially to Rs 431 crore from Rs 330 crore.
- Constant-currency revenue growth stood at 1.7%, compared with 4.4% in the previous quarter and an estimate of 2.5%.
- The company narrowed its EBIT margin guidance to 13–13.5% from 13–14% earlier.
Here's what brokerages are saying after Hexaware announced Q3 results
Kotak Neo
- Maintained 'Buy'; Fair Value Cut To Rs 620 From Rs 660
- Withdrew its CY26 revenue growth guidance.
- Expects a sequential revenue decline in Q4.
- Cut CY27–CY28 earnings per share estimates by 6.5–7%.
- Lowered its EBIT margin guidance to 13–13.5%.
- Expects the new CEO to focus on large-deal conversion, sales execution and margin improvement.
Jefferies
- Maintained 'Underperform'; Target Price Cut To Rs 470 From Rs 500
- Said delayed ramp-ups of large deals had prompted the withdrawal of CY26 revenue growth guidance.
- Noted that the company lowered its CY26 EBIT margin guidance to 13–13.5%.
- Expects wage hikes to put further pressure on margins.
- Forecasts around 5% organic revenue compound annual growth over CY25–CY28.
- Cut revenue and earnings estimates by 2–3%.
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