Hexaware Technologies (HEXT) Q3 25/26 earnings summary

Executive summary

• Q3CY25 revenue reached $394.8M, up 3.3% QoQ and 5.5% YoY, with EBITDA margin at 17.5%-17.6% and net profit margin at 10.6%.

• Strong cash position of $228M post-acquisitions; headcount at 33,590 with low attrition and high utilization.

• Leadership changes include new heads for H&I, High Tech, and AI Practice, aiming to drive growth in key sectors.

• Strategic initiatives in AI, legacy modernization, and Vibe Coding are gaining traction, with multiple domain AI solutions launched and initial customer orders secured.

• Acquisition of CyberSolve, an IAM specialist, for up to $66M, expected to enhance security offerings and client base.

Financial highlights

• Q3 revenue: $394.8M, up 3.3% QoQ and 5.5% YoY; constant currency growth 3.4% QoQ and 5.2% YoY.

• EBITDA margin improved to 17.5%-17.6%, up 154 bps YoY; net profit margin at 10.6%.

• Cash and equivalents at $228M (₹20,201M) as of Sep 30, 2025; DSO at 73 days.

• LTM OCF to EBITDA at 79.6%-80%.

• Basic EPS at ₹6.09, up 22.3% YoY.

Outlook and guidance

• Demand environment stabilizing with early recovery in Manufacturing & Consumer and improved deal momentum.

• Q4 expected to be flat due to seasonal headwinds and government shutdown impacting visa transfers.

• FY26 expected to be better than FY25, with more guidance next quarter as budget cycles and deal closures progress.

• Margin guidance narrowed to 17.1%-17.2% for the full year.