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Informist, Wednesday, Jul. 29, 2026

 

By Arya S. Biju

 

MUMBAI – Ramp-up of large deals won in previous quarters, absence of furloughs, and higher billing days are expected to drive Hexaware Technologies Ltd.'s top line for the June quarter. While both net profit and revenue for the quarter are seen rising on a sequential basis, the company may see an on-year decline in its bottom line due to higher costs related to the ramping up of large deals and higher artificial intelligence-led investments, analysts said.

 

The digital and technology services company's consolidated net profit for the June quarter is expected to rise over 2% sequentially to INR 3.59 billion, according to the average of estimates from seven brokerages. On a year-on-year basis, the metric is falling over 5%.

 

The highest estimate for the company's consolidated net profit is INR 3.80 billion from Indsec Securities and Finance Ltd. The lowest estimate of INR 2.95 billion for the company's bottom line is from Kotak Securities Ltd. It expects the company's net profit to decline both sequentially and on year due to a foreign exchange loss of INR 650 million.

 

Hexaware Tech's consolidated revenue for the June quarter is expected to grow almost 5% sequentially to INR 38.20 billion, according to estimates. On a year-on-year basis, the company's revenue is expected to rise over 17%.

 

The highest estimate for the company's consolidated revenue for the quarter is INR 38.51 billion from ICICI Securities Ltd. The brokerage expects the company to report healthy revenue growth in the June quarter on a weak base in the trailing quarter which was impacted by budget cuts by two government-sponsored enterprise clients, lower billing days, and furloughs. Growth in sales from the company's healthcare and insurance, banking, and manufacturing and consumer business is also expected to support the top line for the June quarter, ICICI Securities said. The lowest estimate for the company's consolidated revenue is INR 37.58 billion from Kotak Securities.

 

The company's revenue for the June quarter is also expected to benefit from contributions from its recent acquisition of Consulting Professionals Services Holdings Ltd. In May, Hexaware Tech through its wholly-owned subsidiary Hexaware Technologies UK Ltd., completed the acquisition of Consulting Professionals Services Holdings. "We assume one-month contribution from CPS acquisition of USD 1.1 mn (million)," ICICI Securities said.

 

In constant currency terms, the company's revenue for the June quarter is expected to rise 4.4–5% on a sequential basis, according to estimates from five brokerages. In the March quarter, the company's revenue in constant currency terms fell 0.3% on a sequential basis. 

 

The consolidated earnings before interest, tax, depreciation, and amortisation for the quarter are expected to be in the range of INR 5.92 billion and  INR 6.35 billion, according to three estimates. In the March quarter, the company had reported a consolidated EBITDA of INR 5.93 billion. 

 

Analysts are divided on how the company will fare in terms of earnings before interest and tax margin for the June quarter. Its EBIT margin for the quarter is expected to expand 10-50 basis points on quarter to 13.1-13.5%, according to four estimates. "Adj. EBIT margin is expected to improve ~20bps QoQ to ~13.5%, supported by operating leverage and better utilisation, partly offset by initial ramp-up investments," Motilal Oswal Financial Services Ltd. said. 

 

While most analysts expect the company's EBIT margin to improve on a sequential basis, ICICI Securities expects the metric to decline to 12.6%, impacted by higher costs related to ramp-up of large deals and higher AI-led investments. Meanwhile, Emkay Global Financial Services Ltd. expects the metric to remain largely flat on a sequential basis. In the March quarter, the company had reported an EBIT margin of 13%. 

 

Hexaware Tech will announce its June quarter earnings Wednesday. Market participants will watch out for the company management's comments on deal intake and pipeline, demand across segments, and updates of hiring plans. Updates on likely revenue deflation from AI adoption, the impact of increased macroeconomic uncertainties on technology spending and the decision-making cycle of clients will also be monitored by the Street, analysts said.

 

At 1211 IST, shares of Hexaware Tech were over 4% higher at INR 618 on the National Stock Exchange. The stock has risen over 34% since the March quarter earnings announcement, but is still 31% lower than its all-time high of INR 900 hit on Jul. 9, 2025. 

 

All six research reports on the company available with Informist have a "buy" recommendation on the stock, with an average target price of INR 663. This indicates an over 7% upside from the stock's current market price.

 

Following are the June quarter earnings estimates for Hexaware Tech in INR billion from seven brokerages, in descending order of estimated of net profit:

 

Brokerage	Net sales	Net profit	EBITDA
Indsec Securities and Finance Ltd.	38.30	3.80
Motilal Oswal Financial Services Ltd.	38.49	3.78	6.35
JM Financial Institutional Securities Pvt. Ltd.	38.49	3.78
Emkay Global Financial Services Ltd.	38.39	3.72	6.09
Nuvama Wealth Management Ltd.	37.61	3.60
ICICI Securities Ltd.	38.51	3.51
Kotak Securities Ltd.	37.58	2.95	5.92
Average	38.20	3.59

 

End

 

US$1 = INR 95.68

 

Edited by Himanshi Gupta

 

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