Athira Sethu,
Kochi, 31 July 2026
Hexaware Technologies Ltd’s shares saw an 8% fall on Thursday, July 30, following the company’s reduced revenue growth guidance for calendar year 2026 (CY26). The decline was unexpected because the firm delivered a June-quarter performance, which matched the market consensus.
During the second quarter, the revenue growth of Hexaware was recorded at 4.4% q/q and 6.1% y/y in constant currency. Besides, there was an improvement in the operating margins of the firm as the EBIT margin stood at 13.6%, up from 13% in the preceding quarter.
However, the net profit declined 6.1% to ₹330.2 crore from ₹351.6 crore in the previous quarter.
However, the most significant cause for investor worries is the company’s decision to lower its revenue growth guidance for CY26. Now, the company expects its revenues to grow 6-7%, compared to the previous guidance of at least 7.6%.
According to the company, the lower revenue guidance was attributed to delayed execution of large deals and challenging global economic conditions, which have led to slower client spends and project ramp-ups.
However, the firm lowered its revenue guidance but maintained its guidance on EBIT margin for CY26, at 13-14%.
The management noted that the prospects for long-term growth were good despite the difficulties in reaching the earlier set revenue targets. The updated forecast incorporates the estimated performance of the CP rebadging deal, and the management is confident of reaching its revised growth target.
Hexaware continued to land new business wins in the quarter across IT outsourcing, digital transformation, and business consolidation categories. The firm also highlighted the increasing demand for large legacy modernization projects with value exceeding $10 million.
It bagged another consolidation deal with one of its top-15 clients and landed its first two projects in a new category where firms have selected Hexaware as their long-term AI technology partners. Even though the deals are currently small, the firm expects them to scale up in the future.
Hexaware also made gains in its Zero License business where it enables enterprises to save on their software licensing costs. Though the business is still at its nascent stage, the management expects it to gain momentum following its pilot success.
Going forward, Hexaware is anticipating Healthcare & Insurance, Banking, and Manufacturing & Consumer business groups to drive the growth for CY26. Improvements are anticipated in the Professional Services and Financial Services group businesses as well; however, the Travel & Transportation group is likely to be impacted adversely by the global economic downturn.
