Hexaware Technologies shares in focus after narrowing 2026 margin guidance

Shares of Hexaware Technologies are in focus on Thursday, October 29, after the company reported its September quarter earnings post-market hours a day prior.

The company follows the calendar year format, hence the September quarter results were its third quarter earnings in 2026.

The company's management on Thursday said it has narrowed its margin guidance for 2026 to 13%-13.5%.

Its revenue was lower than expectations, while margins were in-line with estimates in the quarter under review.

The company's constant currency (CC) revenue growth was at 1.7% below estimates of 3%. The same was up 1.7% sequentially and 4.5% on an annual basis.

Its adjusted EBIT was at 13.8% compared to expectations of 13.6%, which was also the same as the previous quarter.

It EBIT was at 12.2% due to one-offs, including acquisition related items and leadership change impacts.

Vivek Jetley took over as CEO of the company from R Srikrishna from October 28.

Its reported EBIT was down 8.5% at ₹479.1 crore sequentially and margin was at 12.2%, down 6.5% from last year.

Hexaware Tech's dollar revenue increased 1.6% to $411.9 million from $405.4 million sequentially and was up 4.3% form the year-ago period.

Its rupee revenue was up 2.3% at ₹3,933.1 crore compared to ₹3,845.2 crore last quarter. It was also up 12.9% from last year.

The company reported profit after tax (PAT) of ₹429.4 crore, up 30% from the previous quarter's ₹330.2 crore and also up 16.1% from the year-ago period.

Its banking vertical grew 6.6% sequentially and 13.5% from last year, while its technology, products and platforms vertical saw 7.2% sequential and 9.7% annual growth.

The company's financial services vertical increased 3% from last quarter and 2.4% from the previous year, while its manufacturing and consumer one was up 1.8% and 3%, respectively.

Professional services was another vertical that witnessed positive growth on a sequential basis at 0.3% and an annual basis at 7.8%.

However, its healthcare and insurance vertical declined 0.4% sequentially but was up 6.3% from last year.

Meanwhile, its travel and transportation vertical declined 3.5% sequentially and 8.5% annually as well.

Shares of Hexaware Tech ended the previous session flat at ₹569 apiece. The stock has gained 18% in the past month but is down 24.9% this year, so far.

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