Hexaware Technologies shares jumped close to 6% as the market opened on Monday after the IT services company outlined a bigger growth opportunity around artificial intelligence at its analyst meet.
The stock was trading at Rs 561.45 apiece on NSE around 9:45 am today, gaining from its previous close at Rs 532.45.
Investors are tracking how the company's AI strategy can help offset pressure on its traditional IT services business and create new revenue streams.
Hexaware Sees $300 Billion AI Opportunity
Hexaware has identified multiple new total addressable market opportunities linked to AI and technology transformation. These include legacy modernisation, cybersecurity, services-as-software and data readiness for AI.
Brokerage firm HSBC said the company has sized these opportunities at more than $300 billion, highlighting the potential market available beyond its existing services.
Hexaware's management expects traditional IT services to face 20-25% gross deflation over the next four years. The company said some of this impact is already reflected in its current revenue base, making the shift towards newer AI-led services important for future growth.
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AI To Drive New Revenue Streams
The company is using Zerovity, its AI delivery layer, to bring together context across enterprise applications and support modernisation, automation and migration.
Hexaware's management has also committed to launching one AI service every month as it expands its AI offering.
The company said more than 50% of its current revenue is already AI-infused, while around 5% of revenue is AI-native. This indicates that AI is already contributing to its business rather than being limited to a future growth strategy.
The company's AI opportunity also extends to reducing technology debt, addressing vulnerabilities, lowering SaaS licence costs, and improving data governance.
Hexaware's focus is therefore shifting from traditional IT services towards higher-value AI-led solutions, with the company looking to build new revenue streams as technology spending increasingly moves towards AI adoption.
Despite today's rally, the stock has been down over 28.3% in the past year, and 24.4% in 2026 itself.
In the past month, however, the stock witnessed a turnaround, which also includes today's rally, and this took the return over the month close to 4%.
Currently, the stock is trading at a price-to-earnings multiple of 24.22 times, with a market capitalisation of Rs 34,611 crore.
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