Hexaware Q1 2026 profit up 7.5%, revenue jumps 12.6%

What Hexaware reported for Q1 CY2026

Hexaware Technologies (NSE: HEXT) reported its financial results for the first quarter of calendar year 2026 ended March 31, 2026. The mid-tier IT services company posted year-on-year growth in both revenue and profit, while highlighting AI-led deal momentum. The company also maintained its annual growth guidance, as referenced in the report. Revenue rose 12.6% year-on-year to ₹3,613 crore, and profit after tax increased 7.5% year-on-year to ₹351.6 crore. On a constant currency basis, which removes the impact of currency movements, revenue was up 3.2% year-on-year. The company’s disclosures also included quarterly movements and profitability metrics in both percentage and absolute terms.

Revenue growth: reported vs constant currency

Hexaware’s Q1 CY2026 revenue stood at ₹3,613 crore. In rupee terms, the company reported revenue growth of 12.6% year-on-year and 3.9% quarter-on-quarter. In constant currency terms, revenue was down 0.3% quarter-on-quarter but up 3.2% year-on-year. The difference between reported rupee growth and constant currency growth reflects the impact of currency translation in reported numbers. The company presented revenue details alongside its USD revenue figure of $188.5 million for the quarter. Taken together, the data points indicate that growth looked stronger in reported INR terms than in constant currency terms.

Profit and EPS: how the quarter looked on the bottom line

Profit after tax (PAT) for Q1 CY2026 was ₹351.6 crore, up 7.5% year-on-year. On a quarter-on-quarter basis, PAT increased 20.6% in INR terms as per the company’s quarterly comparison table. Basic EPS for the quarter was ₹5.77, up 7.2% year-on-year, and up 20.5% quarter-on-quarter. These figures were disclosed alongside revenue and margin metrics, offering a consolidated view of earnings performance for the period. The company did not provide additional profit bridge details in the shared excerpt, so the underlying drivers beyond the disclosed operating metrics remain limited to what was reported.

EBIT and margins: profitability indicators

Hexaware reported EBIT of ₹480.1 crore for Q1 CY2026. In INR terms, EBIT was up 5.7% year-on-year and up 88.9% quarter-on-quarter, as per the table shared in the release. EBIT margin for the quarter was reported at 13.0%. The company stated the EBIT margin was down 6 basis points quarter-on-quarter and down 133 basis points year-on-year. In absolute terms, EBIT was down 0.6% quarter-on-quarter and down 5.1% year-on-year, as noted in the profitability section of the excerpt. The disclosed margin movement shows that profitability, measured by EBIT margin, weakened year-on-year even as reported revenue grew.

Vertical performance: financial services, healthcare, manufacturing

The company provided vertical-wise growth figures for the first quarter. Financial services growth was reported at 1.4% for the quarter. Healthcare grew 13.5%, and manufacturing grew 13.2%. These segment indicators help frame where demand was relatively stronger during the period, based on the disclosed numbers. The excerpt does not provide the revenue mix by vertical or the base values for each segment, so comparisons are limited to the growth percentages stated.

Operating metrics: utilisation and $10 million-plus clients

Hexaware disclosed an utilisation rate of 82.6%. The company also reported that its count of $10 million-plus clients increased to 34. These operating indicators are often used by investors to track delivery capacity and the breadth of larger client relationships. While the excerpt does not specify the prior-period $10 million-plus client number, it clearly states the latest count and that it increased.

Dividend and cash-flow commentary from management

Hexaware declared an interim dividend of ₹8.5 per share, described as its first interim dividend in the cited management commentary. CFO Vikash Jain linked the dividend decision to the company’s cash generation and balance sheet strength. He stated that the quarter reflected “strength and discipline” in Hexaware’s financial engine and cited an LTM operating cash flow to PAT conversion of 125%+. The company positioned the dividend as part of disciplined capital allocation and shareholder returns. Beyond the conversion metric and the dividend amount, no additional cash balance numbers were included in the Q1 CY2026 portion of the excerpt.

Key numbers at a glance

Why this quarter matters for investors tracking mid-tier IT

The quarter combined double-digit reported INR revenue growth with a slower constant currency growth rate. That gap is important for evaluating underlying demand versus currency translation effects, since constant currency is designed to reduce the impact of forex movements. Investors also tend to monitor margin movement closely, and the company’s reported EBIT margin decline year-on-year provides a clear data point on profitability pressure. At the same time, Hexaware’s decision to declare an interim dividend of ₹8.5 per share and its reference to 125%+ LTM OCF to PAT conversion signals a focus on cash discipline in management messaging. The increase in $10 million-plus clients to 34 and utilisation of 82.6% add operational context to the financial results.

Conclusion

Hexaware closed Q1 CY2026 with revenue of ₹3,613 crore and net profit of ₹351.6 crore, alongside an interim dividend of ₹8.5 per share. The company also reported constant currency revenue growth of 3.2% year-on-year and maintained its annual growth guidance. Vertical growth was led by healthcare and manufacturing, based on the disclosed percentages. The next updates investors will watch include subsequent quarterly execution against the maintained guidance and whether margin performance stabilises relative to the year-on-year decline reported in Q1.