Hexaware’s September-quarter profit increased, but slower-than-expected revenue growth and its revised margin range put the earnings outlook in focus.
Hexaware Technologies shares traded lower on Thursday, October 29, after the IT services company reported September-quarter revenue growth below market expectations and narrowed its full-year 2026 margin guidance.
The stock was down 3.2% at ₹554.20 at 10:22 a.m. IST, according to the supplied CNBC-TV18 report. That quotation represents an intraday snapshot rather than the closing price.
Management narrowed its 2026 margin guidance to 13%–13.5%. The announcement accompanied a mixed quarter: revenue increased and net profit improved, but reported operating profit declined.
Hexaware follows a January–December financial year, making the quarter ended September 30 its third quarter of calendar year 2026.
Revenue grows, but falls short of expectations
Constant-currency revenue increased 1.7% sequentially, below the 3% estimate cited by CNBC-TV18. Year-on-year constant-currency growth stood at 4.5%.
Constant-currency figures remove exchange-rate movements to provide a clearer comparison of business growth across reporting periods.
Reported dollar revenue reached $411.9 million, up 1.6% from the June quarter and 4.3% from a year earlier. Rupee revenue increased 2.3% sequentially to ₹3,933.1 crore and rose 12.9% year-on-year. Hexaware confirmed these figures in its earnings announcement.
The difference between rupee and dollar growth is important. The stronger rupee-denominated percentage should not be interpreted as an equivalent increase in underlying customer demand.
Hexaware Q3 2026: key financial figures
| Metric | September-quarter result | Sequential change |
|---|---|---|
| Revenue in rupees | ₹3,933.1 crore | Up 2.3% |
| Revenue in US dollars | $411.9 million | Up 1.6% |
| Constant-currency revenue | — | Up 1.7% |
| Reported EBIT | ₹479.1 crore | Down 8.5% |
| Reported EBIT margin | 12.2% | — |
| Adjusted EBIT margin | 13.8% | Up 17 basis points |
| Profit after tax | ₹429.4 crore | Up 30% |
EBIT means earnings before interest and tax. Reported and adjusted measures should be compared on a consistent basis.
Adjusted margin holds up, while reported EBIT falls
Adjusted EBIT margin came in at 13.8%, compared with the 13.6% expectation cited in the supplied report.
The company’s announcement showed a sequential improvement of 17 basis points, although the adjusted margin remained 88 basis points below its year-earlier level. One basis point equals 0.01 percentage point.
Reported EBIT margin was lower, at 12.2%. The supplied report attributed the gap to items including acquisition-related adjustments and leadership-transition effects.
Reported EBIT declined 8.5% sequentially to ₹479.1 crore and was 6.5% lower year-on-year.
The distinction matters because adjusted figures exclude specified items. They can help assess operating performance, but the reported result remains necessary for understanding the quarter’s full financial picture.
Why higher net profit does not settle the operating question
Profit after tax rose to ₹429.4 crore from ₹330.2 crore in the preceding quarter. It was also 16.1% higher than a year earlier.
That improvement occurred alongside a decline in reported EBIT.
The two measures capture different parts of the income statement. Net profit includes the effects of taxes and non-operating items, while EBIT focuses on earnings before interest and tax.
Consequently, the 30% sequential increase in net profit should not be read as evidence that operating profitability improved by the same amount. Assessing the result requires attention to both measures and the adjustments between them.
Growth differs across business verticals
Technology, products and platforms recorded the strongest sequential growth among the verticals detailed in the supplied report. Banking also expanded, while travel and transportation remained weak.
| Business vertical | Sequential growth | Year-on-year growth |
|---|---|---|
| Technology, products and platforms | 7.2% | 9.7% |
| Banking | 6.6% | 13.5% |
| Financial services | 3.0% | 2.4% |
| Manufacturing and consumer | 1.8% | 3.0% |
| Professional services | 0.3% | 7.8% |
| Healthcare and insurance | -0.4% | 6.3% |
| Travel and transportation | -3.5% | -8.5% |
The figures indicate an uneven demand picture. Growth in banking and technology-related work was accompanied by contraction in travel and transportation.
Healthcare and insurance showed a different pattern: revenue declined slightly from the previous quarter but remained above the year-earlier level.
CEO transition adds another point to watch
Vivek Jetley succeeded R Srikrishna as chief executive effective October 28, according to CNBC-TV18’s earnings coverage.
The transition places the next set of management updates in focus, particularly around revenue execution and profitability.
For now, the quarter presents two separate signals. Hexaware continued to grow revenue and delivered higher net profit, while its constant-currency expansion missed expectations and reported EBIT weakened.
The next results will help establish whether stronger business verticals can offset weaker areas and whether revenue growth can improve alongside margins.
Market-data note: The share price quoted above is from 10:22 a.m. IST on October 29, 2026. It is not a live quotation or a closing price.
