Hexaware Technologies Reports Strong Q2 CY26 Growth, Declares Interim Dividend

Consolidated Revenue: ₹3,845.2 crore
Consolidated Profit: ₹330.2 crore

Reader Takeaway: Robust revenue growth and margin expansion, with a dividend payout, offset by ongoing litigation risks.

What just happened

Hexaware Technologies announced its financial results for the quarter ended June 30, 2026. The company reported consolidated revenue of ₹3,845.2 crore, an increase of 17.9% year-on-year and 6.4% sequentially. In USD terms, revenue grew 6.1% YoY to USD 405.4 million. Consolidated profit for the quarter stood at ₹330.2 crore. The company's EBIT margin improved to 13.6%. The Board declared an interim dividend of ₹8.50 per equity share.

Additionally, Hexaware completed the acquisition of 100% ownership in Consulting Professionals Services Holdings Limited (CPS) for GBP 6 million upfront, plus contingent consideration of up to GBP 5 million, aimed at enhancing its regulatory compliance and business transformation services.

Why this matters

The results show continued top-line growth, indicating market demand for Hexaware's services. The improved EBIT margin suggests better operational efficiency. The interim dividend offers a direct return to shareholders. The strategic acquisition is expected to strengthen its service offerings in niche areas.

The backstory

In Q2 CY26, Hexaware's revenue growth was driven by strong performance in its Healthcare & Insurance and Manufacturing & Consumer segments. This growth follows a period of strategic investments and focus on key verticals.

What changes now

The acquisition of CPS is expected to bolster Hexaware's capabilities in specialized consulting. The interim dividend provides immediate value to shareholders. The company continues its focus on adding high-value clients, adding one in the USD 20Mn+ category in this quarter.

Risks to watch

Hexaware is defending against a USD 500 million patent infringement and breach of contract claim by Natsoft Corporation and Updraft LLC. While federal patent claims were dismissed, plaintiffs may amend their complaint. The company also faces residual risk from a dispute with a European customer who filed for insolvency, involving USD 9.1 million (INR 782 million).

Peer comparison

(No direct peer comparison data provided in the filing)

Context metrics (time-bound)

• Consolidated Revenue Q2 CY26: ₹3,845.2 crore (17.9% YoY growth)
• Consolidated Profit Q2 CY26: ₹330.2 crore
• EBIT Margin Q2 CY26: 13.6% (up 68 bps QoQ)
• Interim Dividend: ₹8.50 per share (paid May 15, 2026)
• CPS Acquisition Cost: GBP 6 million upfront + up to GBP 5 million contingent
• Litigation Claim Value: USD 500 million

What to track next

Investors will be monitoring the progress of the legal proceedings, especially any amended complaints from Natsoft and Updraft. Additionally, the integration and impact of the CPS acquisition on service capabilities and financial performance will be key. The company's ability to maintain revenue momentum and margin expansion in challenging market conditions will also be crucial.