Revenue from operations grew by 12.6%, rising to ₹3,613 crore from ₹3,208 crore a year prior, and saw a quarter-on-quarter increase of 3.9%. When adjusted for constant currency, revenue experienced a slight decline of 0.3% quarter-on-quarter but increased 3.2% year-on-year.
The EBIT (Earnings Before Interest and Taxes) margin for Q1CY26 was reported at 13%, reflecting a decrease of 6 basis points sequentially and 133 basis points compared to the previous year. In terms of absolute figures, EBIT fell by 0.6% from the previous quarter and by 5.1% year-on-year.
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During the quarter, Hexaware added two customers from the $10 million-plus category, raising the total to 34, up from 32 in the previous quarter. The concentration of revenue from the top 10 clients stood at 35.9% on a trailing 12-month basis.
The closing headcount at the end of the quarter was 33,798, reflecting a net decrease of 46 employees quarter-on-quarter. However, the IT headcount saw an increase of 124. Voluntary attrition in IT was recorded at 11.1%, with an IT employee utilization rate of 82.6%.
Days’ sales outstanding, including both billed and unbilled, were at 75 days in Q1CY26, with billed DSO at 44 days. Operating cash flow to reported profit on a trailing 12-month basis was 125.1%. As of March 31, 2026, cash and cash equivalents amounted to ₹1,878 crore.
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CEO R. Srikrishna emphasized, “The most defensible moat in the AI world is trust in relationships with customers. Our clients rely on us as their AI transformation partner, harnessing the power of AI across all aspects of their IT and business operations. This presents a substantial growth opportunity, positioning us well for accelerated growth through 2026.”
CFO Vikash Jain remarked, “Q1 continued to showcase the strength and discipline of our financial engine. We recorded another quarter of robust cash generation, achieving industry-leading LTM OCF to PAT conversion of over 125%. This solid balance sheet and consistent cash flow allowed us to declare our first interim dividend of ₹8.5 per share, emphasizing our commitment to disciplined capital allocation and shareholder returns.”
Hexaware Technologies reaffirmed its baseline revenue growth outlook for CY26 at 7.6%. The company noted that this outlook is supported by the ramp-up of previously secured large deals and strong conversions from recent wins, which are anticipated to enhance growth momentum throughout the year.
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In terms of vertical performance, Banking, H&I, and M&C are projected to lead growth in CY26, followed by PS and FS. The T&T segment is expected to lag due to macroeconomic conditions.
Regarding profitability, the company has reiterated its EBIT margin guidance at 13.0%–14.0%, expecting margins to improve throughout the year, particularly in the second half, with an exit rate surpassing CY26 levels.
Hexaware Technologies Ltd’s shares closed at ₹464.50, with an increase of ₹12.35, equating to 2.73%, on the BSE.
