Hexaware Navigates Q4 CY25 with Strategic AI Push and Robust Deal Wins

Hexaware reported a consolidated revenue of 3,478.2 Crore for Q4 CY25, with a 10.3% YoY growth. EBITDA stood at 591.5 Crore (15.1% YoY growth), and PAT was 291.6 Crore.

Financial Services was the strongest vertical, while Banking showed consistent sequential and YoY growth. Geographically, all regions grew YoY, though North America saw a sequential decline due to specific factors.

Hexaware has an AI-first strategy, integrating AI into platforms, launching three new AI offerings in Q4, and implementing a global multilingual AI helpdesk. They also launched a new Technology Products and Platforms (TPP) vertical.

Management expects CY26 revenue growth to be better than 7.6% (CY25). The EBIT outlook for CY26 is 13.0% to 14.0%, with Q1 being seasonally weak but growth accelerating thereafter and a stronger exit in H2.

Challenges included client-specific revenue cuts, lower license revenues, forex headwinds, and impacts from new labor codes. Positive developments included strong deal wins, pipeline growth, healthy cash generation, and improved margins.

Hexaware maintains a debt-free balance sheet with over $235 million in cash. Its LTM OCF to Adjusted EBITDA conversion was 76%, exceeding its guided range, indicating strong cash generation.

The new labor codes resulted in a one-time impact of $12.5 million in Q4 CY25 and are expected to cause a continuing 20 bps impact on margins for the full year CY26.