Hexaware Q1 CY26 profit rises 7.5%, revenue up 12.6%

Key takeaways from Q1 CY26

Hexaware Technologies reported a stronger-than-expected first quarter of calendar year 2026 (Q1 CY26), with profit and revenue rising year-on-year despite a broader backdrop of geopolitical uncertainty. The mid-tier IT services firm said net profit increased 7.5% year-on-year to ₹351.6 crore. Revenue rose 12.6% year-on-year to ₹3,613 crore, supported by strong performance in Europe and the banking sector. The company also reiterated its full-year revenue growth guidance of 7.6%, linking the outlook to the ramp-up of previously won large deals and conversion from recent wins. Hexaware is backed by private equity firm Carlyle.

Profit rises to ₹351.6 crore, beats expectations

For the quarter ended March 31, 2026, Hexaware posted consolidated net profit of ₹351.6 crore. The company’s profit also grew 20.6% sequentially, based on the reported quarter-on-quarter change provided in the results summary. Basic EPS for the quarter was ₹5.77, up 20.46% quarter-on-quarter and 7.25% year-on-year. The reported profit performance came as the company highlighted continued AI-led deal momentum, while also flagging a challenging global environment.

Revenue grows 12.6% YoY to ₹3,613 crore

Hexaware’s consolidated revenue from operations for Q1 CY26 was ₹3,613 crore. This represented 12.6% year-on-year growth and 3.9% quarter-on-quarter growth, delivering what the report described as a positive surprise to the street. In constant currency terms, revenue grew 3.2% year-on-year, but slipped 0.3% sequentially. In US dollar terms, revenue for the quarter stood at $188.5 million, compared with $189.0 million in Q4 CY25 and $171.5 million in Q1 CY25.

Regional and sector drivers highlighted in the update

The company attributed the quarter’s momentum to strong performance in Europe and the banking sector. Another business update also pointed to growth in healthcare, banking, and manufacturing as key contributors during the period. These references suggest that Hexaware’s quarterly growth was not concentrated in a single segment, but supported by multiple verticals cited in the disclosures. The company’s commentary also linked the full-year growth view to the execution of large deals already won and stronger conversion from recent wins.

Operating performance: EBIT and margins

Hexaware reported EBIT of ₹480.1 crore for Q1 CY26, based on the consolidated financial summary. One report stated an EBIT margin of 13.3% for the quarter, while the company’s quarterly metrics table listed a reported EBIT margin of 13.0%. The same company table showed the EBIT margin was down 6 basis points quarter-on-quarter and down 133 basis points year-on-year in percentage terms. Investors typically track this closely because it indicates whether revenue growth is translating into operating leverage.

Dividend announcement and capital management commentary

Hexaware’s Chief Financial Officer Vikash Jain said the company’s cash flows and financial position supported a dividend announcement. The company announced a dividend of ₹8 per share, describing it as aligned with prudent capital management and shareholder value. The update positioned the dividend alongside the quarter’s earnings growth rather than as a one-off decision, although no additional dividend policy details were included in the provided text.

Guidance reiterated at 7.6% revenue growth for CY26

Hexaware maintained its calendar-year revenue growth guidance of 7.6%. The company tied this to the ramp-up of previously won large deals and continued conversion from recent wins. The update also referenced strong AI-led deal momentum as a supporting factor. While the company acknowledged geopolitical uncertainties, it did not change its stated growth guidance in the information provided.

Stock reaction and what investors tracked

Shares of Hexaware closed at ₹460.55 on the BSE on Thursday, as cited in the report. Beyond the headline revenue and profit numbers, investors also had several cross-currency indicators to monitor. Revenue in US dollar terms was $188.5 million, down 0.1% quarter-on-quarter but up 4.6% year-on-year. Constant currency growth, a commonly used measure to remove currency impact, was reported at 3.2% year-on-year and -0.3% sequentially.

Conference call schedule for analysts

Hexaware said it would host its Q1 financial earnings conference call for CY 2026 on May 07, 2026, at 8:00 AM (IST). The schedule was shared after the company announced the results to the stock exchanges. Such calls are typically used to discuss deal wins, sector performance, margins, and guidance assumptions, though no additional commentary from the call was included in the provided content.

Summary table: key reported numbers

Why this quarter matters

Hexaware’s Q1 update matters for two practical reasons visible in the disclosed numbers. First, the company delivered double-digit year-on-year revenue growth in rupee terms, while also reporting a profit increase and a sequential profit step-up of 20.6%. Second, it reiterated a 7.6% full-year revenue growth guidance even as it acknowledged geopolitical uncertainties, signalling continuity in management’s near-term outlook based on current deal execution.

At the same time, the cross-currency view shows a more moderate growth picture, with constant currency revenue up 3.2% year-on-year and down 0.3% quarter-on-quarter. For investors, this puts a spotlight on how much of the rupee growth is supported by currency movement versus underlying volume and pricing, and how the deal ramp-up translates into sustained operating performance.

Conclusion

Hexaware opened CY26 with net profit of ₹351.6 crore and revenue of ₹3,613 crore, supported by Europe and banking performance and a continued focus on scaling recently won business. The company also announced a dividend of ₹8 per share and reiterated its 7.6% full-year revenue growth guidance. The next formal update in the immediate term was the scheduled earnings conference call on May 07, 2026, where investors and analysts were set to seek more detail on deal conversion, margins, and sector trends.