Hexaware Technologies (HEXT) Q4 25/26 earnings summary

Executive summary

• Q4CY25 revenue was $389 million, down 1.5% sequentially but up 4.5% YoY, with full-year revenue at $1,537.4 million, up 7.6% YoY.

• Launched a new Technology Products and Platforms (TPP) vertical, three new AI offerings, and a global multilingual AI helpdesk.

• Recognized among the Top 25 IT Services Brands globally, with multiple awards for innovation, ESG, and workplace excellence.

• Headcount closed at 33,844, with low attrition (11%) and ongoing capacity build-up for future growth.

• Major client additions in the $50M+ and $100M+ categories, and two strategic acquisitions completed.

Financial highlights

• Full-year EBITDA margin was 17.1%, up 122 bps YoY; Q4CY25 EBITDA margin was 17.0%.

• Q4CY25 basic EPS was INR 4.79; full-year EPS was INR 22.51, up 16.2% YoY.

• Cash and cash equivalents at year-end stood at $237 million; company remains debt-free.

• DSO at 67 days, supporting strong cash conversion; OCF/EBITDA at 75.8%.

• Dividend per share for CY25 was INR 11.5.

Outlook and guidance

• CY26 revenue growth is expected to exceed CY25’s 7.6%, with acceleration after a seasonally weak Q1.

• EBIT margin guidance for CY26 is 13%-14%, lower due to deal ramp-ups and rebadging, but expected to recover in H2.

• Banking, Healthcare & Insurance to lead CY26 growth; Manufacturing & Consumer and High Tech & Professional Services to grow but trail company average.

• AI is a revenue dampener in IT but a growth driver in new services, with 20%-40% productivity improvement on renewals.