Hexaware Technologies Ltd. share price target

We met with Hexaware (HEXT) CEO Mr. R. Srikrishna and CFO Mr. Vikash Kumar Jain following the 2QCY26 results to discuss the guidance revision, the demand environment, AI monetization, and the medium-term growth outlook.

Hexaware reported in-line, broad-based healthy revenue growth vs. our expectations, with five out of seven verticals and all three markets growing sequentially.

Hexaware Technologies (HEXT) reported revenue of USD405m in 2QCY26, up 4.4% QoQ in CC terms vs. our estimate of 4.8% QoQ CC.

Hexaware (HEXW) reported revenue growth and EBIT margins slightly better than those expected by the company at the start of the quarter in Q1CY26.

Hexaware Technologies (HEXT) reported revenue of USD389m in 1QCY26, down 0.3% QoQ in CC terms vs. our estimate of 0.5% QoQ CC.

We interacted with R Srikrishna, CEO of Hexaware Technologies (HEXT), to gauge the market pulse and assess the growth outlook. HEXT’s CY25 growth was impacted by weak macros, higher than usual client-specific challenges, and weak NN deal-wins in H1CY25. NN trends and overall growth started improving in H2CY25.

We initiate coverage on Hexaware with a BUY rating and TP of INR 570 based on 20x CY27E EPS of INR 29. We like Hexaware for its diversified vertical mix, expertise in select sub-segments across each vertical, broad-based service mix, early move into Generative and Agentic AI services, stable leadership and better cash flow conversion versus midtier peers.

Hexaware Technologies (HEXT) reported revenue of USD389m in 4QCY25, down 1.4% QoQ in CC terms vs. our estimate of 2.6% QoQ CC. In CY25, revenue grew 7.6%/7.1% YoY in USD/CC.

Hexaware Technologies (HEXT) reported revenue of USD395m in 3QCY25, up 3.4% QoQ in CC terms vs. our estimate of 3.3% QoQ CC.

Hexaware (HEXT) is one of the leading mid-tier IT services providers, and is reentering the Indian stock market following a four-year hiatus. HEXT has delivered consistent growth with a 14% CAGR in USD revenue over CY20-24, supported by robust ecosystem partnerships, a focused go-to-market (GTM) strategy, and diversified service lines across Design & Build, Secure & Run, Data & AI, and BPO.

Issue Snapshot: Issue Open: February 12 February 14 2025 Price Band: Rs. 674 708 (Employee Discount Rs 67) *Issue Size: Offer for sale of upto Rs 8750 cr Reservation for: QIB upto 50% eq sh Non-Institutional alteast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 1 Book value: Rs 79.92 (September 30, 2024) Bid size: - 21 equity shares and in multiples thereof 100% Book built Issue IPO Note - Hexaware Technologies Limited