Synopsis: Hexaware Tech shares dropped 10% after Q4CY25 results showed flat revenue at Rs. 3,478 crore, a 37% QoQ EBITDA decline, 21% fall in profit, and subdued CY26 EBIT margin guidance of 13–14%.
The shares of this company are engaged in global digital and technology services with artificial intelligence at its core, which uses technology to deliver AI-based solutions through its suite of platforms and tools are in the spotlight after it fell by 10% in today’s market following its latest results with 21% fall in net profit QoQ.
With a market capitalisation of Rs. 39,022 cr, the shares of Hexaware Technologies Ltd were trading at Rs. 638.65 per share, decreasing 10% in today’s market session, making a low of Rs. 621, down from its previous close of Rs. 690.30 per share. Since its listing on February 19, 2025, the stock has shown a declining trend, falling 16% from the listing day, 13% over the past six months, and 14% in the last month.
CY25 Results
QoQ performance
Hexaware Tech reported flat revenue QoQ, with sales marginally lower by 0.2% at Rs. 3,478 crore compared to Rs. 3,484 crore in Q3 CY25. Profitability weakened sharply during the quarter. EBITDA declined 37% QoQ to Rs. 378 crore from Rs. 601 crore, indicating significant margin pressure. Net profit fell 21% QoQ to Rs. 292 crore versus Rs. 370 crore, while EPS declined 21% QoQ to Rs. 4.78 from Rs. 6.08.
YoY performance
On a year-on-year basis (calendar-year reporting), Hexaware delivered 10% revenue growth, with sales rising to Rs. 3,478 crore from Rs. 3,154 crore in Q4 CY24. Net profit fell by 9% to Rs. 292 crore compared to Rs. 321 crore last year, reflecting improved bottom-line performance. However, EBITDA declined 23% to Rs. 378 crore from Rs. 490 crore, signaling margin compression. EPS fell 8.9% to Rs. 4.78 from Rs. 5.25.
Q4CY25 Revenue Mix and Segment Performance Overview
Hexaware’s vertical revenue mix in Q4CY25 remained well diversified, led by Financial Services (30%), followed by Healthcare & Insurance (21%), Manufacturing & Consumer (16%), and High Tech & Professional Services (15%), with Banking (10%) and Travel & Transportation (8%) contributing the rest.
On a QoQ basis, growth in Financial Services was stable (0.0%), while Banking (+11.1%) and Travel & Transportation (+5.1%) showed healthy sequential growth. However, Healthcare & Insurance (-9.0%), High Tech & Professional Services (-4.5%), and Manufacturing & Consumer (-0.7%) saw some moderation.
YoY performance was strong across most verticals, particularly Manufacturing & Consumer (+15.0%), Banking (+15.1%), and Travel & Transportation (+10.8%), while High Tech & Professional Services declined (-15.3%), indicating client-specific or demand-related softness. From a geographic standpoint, revenues continue to be heavily skewed towards the Americas (74%), followed by Europe (19%) and Asia Pacific (6%).
QoQ growth was led by Asia Pacific (+14.9%) and Europe (+1.1%), while the Americas saw a marginal decline (-3.3%). On a YoY basis, Europe (+10.3%) and Asia Pacific (+12.2%) outperformed, highlighting diversification beyond the core Americas market, which still posted modest growth (+2.5%).
In terms of service mix, IT Services & Others account for 88% of revenues, with BPS Services at 12%. While both segments saw slight QoQ declines, IT Services delivered solid YoY growth of 5.9%, and BPS Services returned to growth on a full-year basis (+2.9%), underscoring the company’s continued focus on core IT-led offerings.
Margin Outlook
The company is transitioning its profit reporting to EBIT and has guided for an EBIT margin of 13.0%–14.0% in CY26. Management indicated that Q1 CY26 EBIT margins will be lower than Q4 CY25, primarily due to calendar-related seasonality.
Margins in H1 CY26 are expected to be under pressure because of large deal ramp-ups, including rebadging engagements, but this impact is seen as temporary, with H2 CY26 EBIT margins expected to improve and recover.
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