For the second quarter, Hexaware reported constant currency revenue growth of 4.4% sequentially and 6.1% year-on-year, while EBIT margin improved to 13.6% from 13% in the previous quarter. However, net profit declined 6.1% sequentially to ₹330.2 crore from ₹351.6 crore.
The company trimmed its CY26 revenue growth guidance to 6-7%, down from its earlier outlook of at least 7.6%, citing delays in deal ramp-ups and a weaker macroeconomic environment.
Despite the guidance cut, Hexaware reiterated its EBIT margin guidance of 13-14% for CY26.
Management said the company continues to see strong structural growth opportunities, but acknowledged that the path to achieving its earlier revenue target has narrowed due to slower execution of large deals and deteriorating macro conditions. The revised guidance includes a 50-basis-point contribution from the CP rebadging deal and implies a 2.7% compound quarterly growth rate (CQGR) at the midpoint, which the company said it is confident of delivering.
On the deal front, Hexaware reported another quarter of healthy order momentum, with wins across consolidation, outsourcing and digital transformation projects.
The company also witnessed increased traction in legacy modernisation deals worth over $10 million, secured a consolidation deal with another top-15 client, and signed its first two mandates in a new category where enterprises are selecting long-term AI partners. While these engagements are currently small, management believes they have the potential to expand significantly over time.
Hexaware also highlighted multiple wins in its Zero License offering, which is currently at an early stage but is expected to scale across enterprise customers following successful proof-of-value deployments.
Looking ahead, management expects the Healthcare & Insurance, Banking, and Manufacturing & Consumer verticals to drive growth in CY26, while the Professional Services and Financial Services segments are likely to follow. The Travel & Transportation vertical is expected to remain under pressure due to macroeconomic weakness.
