Hexaware Technologies Q2 Results: Revenue Up, But Guidance Revised

Hexaware Technologies reported Q2CY26 revenue of USD 405.4 million (₹3,845.2 crore), a 4.4% sequential increase and 6.1% year-on-year growth. The company's EBIT margin improved to 13.6% from 13.0% in the previous quarter. Basic EPS stood at ₹5.41.

Reader Takeaway: Steady revenue growth amid margin improvement is positive, but revised guidance signals near-term caution.

What just happened

Hexaware Technologies announced its financial results for the second quarter of CY26. Revenue reached USD 405.4 million, marking a 4.4% increase from the first quarter and a 6.1% rise compared to the same period last year. The reported EBIT margin saw an improvement of 68 basis points, settling at 13.6%. Basic Earnings Per Share (EPS) was recorded at ₹5.41.

Why this matters

The sequential revenue growth and improved EBIT margin indicate operational resilience. However, the company's management has revised its annual revenue growth target downwards to 6-7%, citing a challenging macroeconomic environment and delays in deal implementations. This revised guidance introduces a degree of near-term uncertainty for investors.

The backstory

Hexaware Technologies is an IT services company focused on digital transformation. In recent quarters, the company has been navigating a complex global economic landscape while focusing on modernizing client systems and driving digital adoption. The firm's performance is often closely watched for its ability to secure and ramp up new deals, especially in areas like legacy modernization.

What changes now

The updated annual revenue guidance to 6-7% is the most significant change. Investors will now need to recalibrate their expectations for the company's top-line growth for the full fiscal year. The focus will shift towards how effectively Hexaware can execute its existing deals and win new ones in the current climate.

Risks to watch

The primary risk highlighted is the company's revised lower annual revenue guidance. Additionally, Hexaware's continued reliance on a few large clients remains a point of attention for long-term stability. The challenging macroeconomic conditions could also impact client spending and project timelines.

Peer comparison

While specific peer results are not detailed in this filing, the IT services sector is generally facing headwinds from global economic slowdowns and cautious client spending. Companies are adapting by focusing on niche digital services and cost efficiencies.

Context metrics (time-bound)

• Revenue Growth (QoQ): 4.4% (USD)
• Revenue Growth (YoY): 6.1% (USD)
• EBIT Margin: 13.6% (improved by 68 bps QoQ)
• Headcount Addition: 708
• Voluntary Attrition: 11.2%
• Utilization Rate: 84.8%

What to track next

Investors will be keen to monitor the company's progress in ramping up new deals and its ability to maintain the 13-14% EBIT margin guidance. The impact of the global macroeconomic environment on client project pipelines and spending will be crucial to observe in upcoming quarters.