Hexaware Technologies reported a 12.6% year-on-year (YoY) increase in revenue for the first quarter of CY26, as the IT services company sharpened its focus on artificial intelligence-led transformation deals amid growing enterprise spending on AI adoption.
The Mumbai-based company posted revenue of ₹3,613 crore for the quarter ended March 31, while net profit rose 7.5% YoY to ₹351.6 crore.
In dollar terms, revenue remained largely flat, declining 0.1%, sequentially, to $388.5 million.
Hexaware’s EBIT margin stood at 13% for the quarter, down 133 basis points YoY.
“The most defensible moat in the AI world is trust in relationships with customers. Our customers trust us to be their AI transformation partner to bring the power of AI to all facets of their IT and business,” CEO R Srikrishna said in the earnings statement, adding that the company sees a “significant growth opportunity” through 2026.
Hexaware, which has been positioning itself as an AI-first IT services firm, said several of its large deal wins during the quarter were centred around AI, automation and cloud transformation. These included an AI-led fab optimisation mandate from a US-based data storage company and an agentic application maintenance and support deal from a digital workspace platform.
The company also secured consolidation and cloud migration deals across banking, manufacturing and professional services sectors, highlighting continued enterprise demand for cost optimisation and technology modernisation.
Hexaware noted that revenue growth during the quarter was led by healthcare and insurance, which grew 13.5% YoY, while banking revenue rose 21.1%.
However, the technology, products and platforms vertical declined 23.5% YoY, showing continued weakness in discretionary spending among tech clients.
Europe emerged as the fastest-growing geography for the company with 11.6% YoY growth, while revenue from the Americas grew 2.5%.
Hexaware’s EBIT margin stood at 13% for the quarter, down 133 basis points YoY. The company generated strong cash flows, with operating cash flow to trailing 12-month profit at 125.1%.
CFO Vikash Jain said the company’s strong cash generation and balance sheet enabled it to declare its first interim dividend of ₹8.5 per share.
The company ended the quarter with a headcount of 33,798 employees, while voluntary attrition in its IT services business stood at 11.1%. Hexaware added two more clients in the $10 million-plus revenue category during the quarter, taking the total count to 34.
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