Hexaware Technologies saw its net profit increase by 7.5% year-on-year to Rs. 352 crore in the first quarter of calendar year 2026, surpassing market expectations. The company’s revenue grew 12.6% compared to last year, driven primarily by strong performance in Europe and the banking vertical.
- Net profit rose 7.5% year-on-year to Rs. 352 crore
- Revenue grew 12.6% led by Europe and banking sectors
- Operating margins improved sequentially to 13%
What happened
Hexaware Technologies reported its Q1 results for calendar year 2026, posting a net profit of Rs. 351.6 crore, an increase of 7.5% year-on-year and 20.6% sequentially. The company’s revenue for the quarter stood at Rs. 3,613 crore, rising 12.6% from the same period last year and 3.9% from the previous quarter. On a constant currency basis, revenue showed a 3.2% annual increase but declined slightly quarter-on-quarter by 0.3%. In US dollar terms, quarterly revenue was $388.5 million.
Revenue growth was led by the European market, which expanded by 11.6%, while the Americas and Asia Pacific regions grew 2.5% and 9.8% respectively. Banking was the strongest vertical for Hexaware, posting a 21.1% year-on-year revenue increase. Manufacturing and healthcare sectors also contributed double-digit growth, while the technology and travel verticals experienced declines of 23.5% and 7.5%, respectively.
Why it matters
The company’s solid quarter came despite ongoing geopolitical uncertainties, highlighting resilience in Hexaware’s business model and customer relationships. CEO R Srikrishna emphasized the importance of trust in customer partnerships, particularly in AI transformation services, positioning Hexaware for accelerated growth opportunities in 2026.
Hexaware’s operating margins expanded 570 basis points sequentially to 13%, although they contracted 133 basis points on a year-on-year basis, reflecting operational improvements amid fluctuating revenue mixes. The company also maintained stable workforce numbers with a slight reduction of 46 employees, and a steady attrition rate of 11.1% suggests ongoing talent retention challenges in the competitive IT services sector.
What to watch next
Hexaware has reiterated its full-year revenue growth guidance of 7.6%, supported by the ramp-up of previously secured large deals and conversions from recent wins. Investors and industry watchers will look for how the company leverages its AI capabilities to fuel growth and whether the positive momentum in key markets and verticals sustains throughout the year.
Close attention will also be paid to margin trends and employee attrition rates as Hexaware navigates evolving market dynamics. The company’s ability to balance growth with operational efficiency and talent management will be key indicators of its competitive positioning in the Indian IT landscape.