Hexaware Tech reiterates revenue, margin guidance for 2026; Stock declines after Q1

Shares of Hexaware Technologies Ltd. declined on Thursday, May 7, after the company reported its earnings for the first quarter of the calendar year 2026.

Its dollar revenue was flat sequentially at $388.5 million compared to $389 million and was up just 4.6% from the previous year. Meanwhile, its constant currency revenue was up 3.2% compared to 12.7% in the year-ago period and it was down 0.3% sequentially.

Hexaware Tech's adjusted EBIT margin was flat as well sequentially at 13%.

Its profit after tax (PAT) increased by 20% to ₹351.6 crore from ₹291.6 crore in the previous quarter.

Hexaware Tech's healthcare and insurance vertical was the clear standout as it contributed to 22.6% of its revenue. The segment saw growth of 9.8% sequentially and 13.5% from the previous year.

The manufacturing and consumer vertical was strong but witnessed sequential softness as it was down 1.6% but was up 13.2% from the year-ago period.

Financial services, the company's largest vertical, declined 1.8% from the previous quarter but was up 1.4% from last year.

Banking fell 7.8% sequentially but rose 21.1% from the previous year. Travel and transportation declined 8.9% sequentially and 7.5% annually.

The tech, products and platforms vertical declined to 2.3% of the company's revenue as it was down 0.4% sequentially and down 23.5% from the previous year.

The company's business in Americas, which makes up 75% of its revenue, was flat sequentially. Meanwhile, in Europe it increased 0.9% from the previous quarter and 11.6% from the previous year. Its APAC business declined 6.6% from the previous quarter.

Outlook

The company reiterated its baseline revenue growth of 7.6% for the calendar year 2026.

It said the outlook is underpinned by ramp-up of previously won large deals, complemented by strong conversion from recent wins, positioning it well for improved growth momentum through the year.

For CY26, it is expecting the baking, healthcare and insurance and manufacturing and consumer verticals to lead the growth. Meanwhile, travel and transportation (T&T) is expected to lag due to macro, it said.

The company has reiterated its EBIT margin guidance of 13% to 14%. It said the margin will improve through the year, especially in the second half, with an exit rate higher than CY26.

Stock reaction

Hexaware Tech shares were down 0.7% in early trade at ₹456.05 apiece. It has declined 39.8% this year, so far.

Also Read: Bonus Share Alert: Real estate stock, up 200% in five years, to reward 1.5 lakh retail shareholders