Hexaware Technologies Posts 6.6% YoY Revenue Growth
Hexaware Technologies Limited (HEXT)
Introduction
Hexaware Technologies Limited (symbol HEXT, scrip code 544362) filed a board‑meeting resolution with the National Stock Exchange of India (NSE) and BSE on 29 July 2026. The Board approved the unaudited standalone and consolidated financial results for the quarter and the first half of FY 2026 (ended 30 June 2026). The results were accompanied by a Limited Review Report from BS R & Co. LLP and a press release (Annexure B).
Key Financial Highlights (Unaudited)
Consolidated Income Statement
| Metric (INR mn) | Q2 2026 (Jun 30) | H1 2026 (6 months) |
|---|---|---|
| Revenue from operations | 38,452 | 74,582 |
| Total income (incl. other items) | 37,951 | 74,298 |
| Total expenses | 33,544 | 65,163 |
| Profit before tax | 4,407 | 9,135 |
| Exceptional items (Labour Codes) | 1,111 | – |
| Profit before tax (net of exceptional) | 4,407 | 9,135 |
| Tax expense (total) | 1,105 | 2,317 |
| Profit for the period | 3,302 | 6,818 |
| Earnings per share – Basic | 5.41 | 11.18 |
| Earnings per share – Diluted | 5.38 | 11.09 |
| Dividend (interim) | ₹ 8.50 per share (paid 15 May 2026) | – |
Segment Performance (Quarter ended 30 Jun 2026)
| Segment | Revenue (INR mn) | Segment profit (INR mn) |
|---|---|---|
| Travel & Transportation | 2,784 | 1,213 |
| Financial Services | 11,029 | 3,429 |
| Banking | 3,465 | 1,468 |
| Healthcare & Insurance | 8,897 | 3,164 |
| Technology, Products & Platforms | 816 | 317 |
| Professional Services | 5,313 | 2,084 |
| Manufacturing & Consumer | 6,148 | 2,284 |
| Total | 38,452 | 13,959 |
Note: Segment headings were re‑structured from FY 2025; Technology, Products & Platforms (TPP) and Professional Services (PS) are now reported separately.
Balance Sheet (as at 30 Jun 2026 – unaudited)
| Item | INR mn |
|---|---|
| Total assets | 115,757 |
| • Non‑current assets | 16,489 |
| • Current assets | – (included in total) |
| Total equity | 67,094 |
| • Equity share capital (₹ 1 face value) | 610 |
| • Other equity | 66,507 |
| Total liabilities | 48,663 |
| • Non‑current liabilities | – |
| • Current liabilities | – |
Cash Flow (Quarter ended 30 Jun 2026)
| Activity | Cash flow (INR mn) |
|---|---|
| Operating activities – net cash generated | 3,928 |
| Investing activities – net cash used | (987) |
| Financing activities – net cash used / inflow | 16,408 (net cash used in financing activities reported as a positive figure) |
| Net change in cash & cash equivalents | – |
Strategic & Regulatory Updates
| Area | Details (as disclosed) |
|---|---|
| Acquisitions | Completed acquisition of Consulting Professionals Services Holdings Ltd (UK) for GBP 6 m cash + up to GBP 5 m contingent consideration. Transaction cost of INR 47 m recorded as a one‑time expense in Q2 2026. |
| Mergers / Re‑organizations | • Mobiquity Velocity Solutions Inc., Mobiquity Inc., and Softcrylic LLC merged into Hexaware Technologies Inc. (effective 1 Jan 2026 & 1 May 2026).<br>• Mobiquity Consulting BV merged into Mobiquity BV (effective 1 Jan 2026).<br>• Applications filed for merger of Mobiquity Softech Pvt Ltd and Softcrylic Technology Solutions India Pvt Ltd into the parent; awaiting NCLT approval. |
| Labour Code Impact | New Indian Labour Codes (effective 1 Apr 2026) generated an exceptional item of INR 1,111 mn (additional gratuity and compensated‑absence provisions). |
| Litigation | • US patent infringement claim (USD 500 m) dismissed by the Northern District of Illinois; further state‑law claims also dismissed.<br>• European customer dispute (USD 9.1 m) escalated to US courts; proceedings ongoing. |
| Regulatory Compliance | Results prepared under Ind AS 34 and filed in accordance with SEBI (Listing Obligations & Disclosure Requirements) Regulation 33. The Limited Review Report concluded no material misstatement. |
| Share Capital Movements | • 449,976 equity shares issued in H1 2026 and 336,018 shares issued in Q2 2026 under employee stock option schemes.<br>• Treasury‑held shares: 1,223,153 (as of 30 Jun 2026). |
| Re‑listing | Equity shares re‑listed on NSE and BSE on 19 Feb 2025 (still applicable). |
Investor Take‑aways
- Revenue Growth: Consolidated revenue rose to ₹ 38.5 bn in Q2 2026 (+6.6 % YoY) and ₹ 74.6 bn for the first half, driven by strong performance across Financial Services, Healthcare & Insurance, and Professional Services.
- Profitability: Net profit for Q2 2026 stood at ₹ 3.3 bn (EPS ₹ 5.41), reflecting a modest decline from the prior year due to the one‑off labour‑code expense.
- Liquidity: Operating cash generation remains healthy (₹ 3.9 bn), while the balance sheet shows a solid equity base (₹ 67.1 bn) and manageable liabilities.
- Capital Returns: The Board declared an interim dividend of ₹ 8.50 per share, underscoring a commitment to shareholder returns despite the exceptional labour‑code charge.
- Strategic Expansion: Recent UK acquisition and multiple subsidiary mergers aim to broaden service capabilities and streamline the corporate structure.
- Risk Management: Litigation exposure appears limited after successful dismissal of a major US patent claim; however, the European customer dispute remains unresolved.
All figures are unaudited and subject to the limited review disclosed in the filing.
Hexaware posted solid revenue growth and a healthy dividend, but profit was dented by a one‑off labour‑code charge. The results are broadly in line with expectations, suggesting a modest upside for the stock. Confidence is moderate given mixed signals.
Sign in for impact outlook, horizons, comparables, and full intelligence analysis.
Forecast from comparable, historic events. Not investment advice.
Original Source Document
View the original exchange filing or announcement.
Frism Computing (OPC) Private Limited
#74, 15TH CROSS, JP Nagar III Phase, Bangalore South, Bangalore 560078, Karnataka