Hexaware Technologies Ltd (HEXT) Q2 FY27 Results Analysis: Revenue Grows 12.90%, Banking Surges 22.77%
Hexaware Technologies Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 3,933.10 Cr (+12.90% YoY) and PAT growth of +16.09% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 28, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 3,933.10 Cr (+12.90% YoY) |
| PAT (Q2) | Rs. 429.40 Cr (+16.09% YoY) |
| EBITDA margin | 17.11% (-15 bps YoY) |
| EPS (Q2) | Rs. 7.06 (+15.93% YoY) |
| Market cap | Rs. 33,749.46 Cr |
| CMP | Rs. 552.35 |
Quarter Snapshot
Revenue grew 12.90% YoY in INR (+4.3% USD) but constant-currency growth of 1.7% QoQ fell below the 2.7% CQGR implied by management's 6-7% CY26 guidance, leaving Q4 needing +16.1% to +20.3% YoY. Reported PAT growth of 16.09% YoY is substantially tax- and earnout-assisted; normalized PAT grew 6.19% YoY while working capital deteriorated (DSO 77 days, CFO/PAT 0.65x). Banking (+22.77% YoY, margin +810 bps) and H&I are the standout segments, while T&T declined and the new CEO's first call will be pivotal for the guidance trajectory.
Key Investment Insights
Key Positives
- Revenue grew 12.90% YoY to Rs.3,933.1 crore (+4.3% YoY in USD, +4.5% in constant currency)
- Banking segment revenue grew 22.77% YoY in INR (+13.5% USD) with segment margin up 810 bps YoY to 43.31%
- Healthcare & Insurance revenue grew 14.97% YoY with segment margin up 518 bps YoY to 36.82%
- Adjusted EBIT margin of 13.8% (+17 bps QoQ) landed within management's 13.0-14.0% CY26 guidance
- Reported PAT grew 16.09% YoY to Rs.429.4 crore; normalized PAT grew 6.19% YoY
- Net worth rose 14.27% in nine months with no borrowings on the balance sheet
- Attrition moderated to 11.1% (TTM, IT) from 11.2%, and utilization held at 84.9%
- Second interim dividend of Rs.9.50/share declared; 9M dividend outflow of Rs.518.1 crore
Risk Factors
- Constant-currency QoQ growth of 1.7% fell below the 2.7% CQGR implied by management's CY26 guidance; Q4 now requires USD revenue of USD 423.8-439.2 Mn (+16.1% to +20.3% YoY) to meet the 6-7% target
- Reported PAT growth of 30.0% QoQ is substantially driven by a Rs.166.3 crore earnout gain and ETR of 20.98% vs the guided 25-26%; normalized PAT grew only 6.19% YoY
- Working capital deteriorated: receivables up 30.5% since December, DSO rose from 75 to 77 days, and 9M CFO/PAT fell to 0.65x from 0.86x
- Standalone PAT fell 25.4% YoY with standalone EBIT margin at 13.71% vs 18.39% a year ago; subsidiaries contributed 53.2% of consolidated PAT-to-owners
- Travel & Transportation revenue declined 8.5% YoY in USD and 2.91% QoQ in INR; four of seven segments saw margins contract YoY
- Unallocated corporate expenses rose to Rs.839.6 crore from Rs.628.4 crore a year ago, dragging reported EBIT margin to 12.18%
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.