ICICI Securities has kept its 'hold' rating on Hexaware Technologies, setting a target price of ₹550. The brokerage noted revenue growth slowed in 2026 due to reduced client spending and wider industry shifts toward artificial intelligence and internal IT teams.
ICICI Securities has maintained its 'hold' rating on Hexaware Technologies, setting a valuation target of ₹550. This outlook follows the company's performance during the first nine months of 2026, during which revenue growth has stayed below expectations. The brokerage's assessment reflects both company-specific challenges and broader pressures currently affecting the IT services sector.
Several factors have contributed to the recent performance issues. The firm has seen delays in project execution and a reduction in spending from some of its major clients. These clients are often focused on consolidating their vendor lists to reduce costs or are undergoing leadership changes, which impacts project timelines. Beyond these internal client dynamics, the broader industry is facing structural shifts. The rise of artificial intelligence is changing how technology services are priced, often leading to a deflationary effect where services become cheaper and more efficient. At the same time, many businesses are increasingly opting to move their IT work in-house rather than hiring external service providers, further pressuring the growth of traditional IT firms.
Investors are now turning their attention to the leadership of new CEO Vivek Jetley to guide the company's future direction. His experience in scaling data and artificial intelligence portfolios is a key focus area, though the immediate challenge lies in managing current fiscal pressures. The company is expected to unveil a detailed strategic roadmap following its fourth-quarter results for 2026. This plan will be a primary monitorable for stakeholders, as it is expected to detail how the management intends to improve operational speed and regain business momentum.
Regarding the financial outlook, ICICI Securities has updated its projections, now expecting a 6% year-over-year growth in US dollar terms for the 2027 calendar year. The firm arrived at the ₹550 target price by rolling its valuation forward by two quarters and applying a 20-times multiple to the estimated earnings per share of ₹27 for the period between the third quarter of 2027 and the second quarter of 2028.
The next steps for the company will depend on how successfully management can navigate these industry challenges. The effectiveness of the new strategic roadmap, combined with the company's ability to retain and grow client budgets in an environment that is increasingly favoring internal IT teams, will be essential in determining the business's future trajectory.