Hexaware Technologies reported Q2 2026 revenue of $405 million, reflecting a 4.4% sequential growth. While the professional services and healthcare segments expanded, the company's adjusted profit fell by 6.1% compared to the previous quarter. Investors may track segment performance and margin sustainability in upcoming quarters.
Hexaware Technologies released its financial results for the second quarter of calendar year 2026, reporting revenue of USD 405 million. This reflects a 4.4% growth on a quarter-over-quarter basis in constant currency terms, though this figure missed some market expectations for the period. The company operates on a calendar year cycle, distinguishing it from many Indian IT peers that follow a March-ending fiscal year.
The company’s performance showed a distinct split across its business segments. Growth was driven by the professional services vertical, which rose 13.3% sequentially, and the healthcare and insurance sector, which grew by 6.8%. In contrast, the technology and travel segments faced pressure, with revenues contracting by 3.1% and 1.0% respectively. This divergence highlights the impact of client spending patterns in specific industries on the company’s overall revenue mix.
On the profitability front, the adjusted EBIT margin was reported at 13.6%. While this margin level remained relatively steady, the bottom line felt the impact of other factors. Adjusted profit after tax stood at INR 3.3 billion, marking a 6.1% decline compared to the previous quarter and a 13% drop on a year-over-year basis. For investors, the ability to maintain or expand these margins amid shifting segment demand remains a central point of focus.
Following the result announcement, brokerage firm Motilal Oswal initiated coverage on the stock with a price target of Rs 660, arriving at this valuation by applying a multiple of 23 times the estimated earnings per share for the 2027 calendar year. The firm noted that the company’s focus on key service verticals may support future performance.
As the company navigates the current demand environment, investors may look for updates on how the management plans to recover growth in the weaker technology and travel segments. Additionally, the sustainability of margins in the face of ongoing investments in service capabilities will be an important metric to watch in the next quarterly disclosures.