Q2 2026 Hexaware Technologies Ltd Earnings Call Transcript
Key Points
- Revenue for the quarter was $405 million, reflecting a solid 4.4% sequential growth, primarily volume-led.
- Reported EBIT margin expanded by 60 basis points sequentially to 13.6%, driven by operational improvements and tailwinds.
- Growth was broad-based, with five out of seven verticals delivering both sequential and year-on-year growth, and every geography showing growth.
- The company continues to see strong momentum in AI-led initiatives, including the launch of new services and the 'Zero License' platform, which is gaining traction with clients.
- Headcount additions continued for the 12th consecutive quarter in IT, with attrition remaining stable at around 11% and utilization improving to 84.8%.
- The company reduced its full-year revenue guidance to 6%-7% from 7.6% due to a narrowed runway and delayed ramp-ups in certain deals.
- EPS was negatively impacted by material hedge and translation losses of approximately $8 million in the quarter.
- The Travel and Transportation vertical remains impacted by macro conditions, particularly in the Middle East, with year-on-year revenue declining 18%.
- Cash balance decreased by $45 million quarter-on-quarter, partly due to an elevated DSO resulting from the ERP transition.
- Deal ramp-ups for several contracts have been delayed, with some expected to start in mid-to-late Q3, impacting near-term revenue visibility.
Ladies and gentlemen, good day. Welcome to Hexware Technologies limited conference call for the Q2 FY26 earnings call. We'll begin today's session with a presentation from the Hexware management team, followed by a Q&A segment. I'll now hand the conference over to Mr. Neeraj Kemka, head of investor relations.
Thank you. Over to you, Mr. Neeraj.
Thank you.
Hello everyone. Welcome to Hexavier Technologies Q2 FY26 Earnings Call.
In the call today, we have with us Mr. Sri Krishna, CEO and Mr. Vikas Jain, CFO.
In the course of this call, we make certain statements which are forward-looking and may involve a number of risks and uncertainties. All forward-looking statements made herein are based on information presently available to the management and the company does not undertake to update any forward-looking statements that may be made in the course of this call.
In this regard, there's a full disclosure which has been included in the investor
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