Q4 2025 Hexaware Technologies Ltd Earnings Call Transcript
Key Points
- Hexaware Technologies Ltd (BOM:544362) has integrated AI into its platforms, enhancing IT operations and software engineering capabilities.
- The company launched three new AI services this quarter, including an AI-first global multilingual help desk, showcasing innovation in AI deployment.
- Hexaware Technologies Ltd (BOM:544362) reported strong deal wins in Q4, with a pipeline exceeding $4 billion for the first time.
- The company added two clients with $100 million in revenue and one client in the $50 million category, indicating strong client growth.
- Hexaware Technologies Ltd (BOM:544362) maintains a healthy cash balance of over $235 million and a debt-free balance sheet, reflecting strong financial health.
- Q4 revenue was $389 million, a sequential decline of 1.5%, primarily due to seasonal factors and lower license revenues.
- The company experienced a 300 bps decline in utilization due to furloughs, increased employee leaves, and bench building for new deals.
- Hexaware Technologies Ltd (BOM:544362) reported a normalized EBITDA margin of 15.4%, a drop of 210 bps sequentially, impacted by ForEx and merit increases.
- The company faced headwinds from a significant client budget cut, impacting Q4 and expected to affect Q1 2026.
- Margins are expected to be lower in the first half of 2026 due to deal ramp-ups and rebadging components, with recovery anticipated in the second half.
Welcome to Hexaware Technologies Limited Conference Call for the Q4 CY '25 earnings call. We will begin today's session with a presentation from the Hexaware management team followed by Q&A segment. (Operator Instructions)
I will now hand the conference over to Mr. Niraj Khemka, Head of Investor Relations. Thank you.
Over to you, Mr. Niraj.
Hello, everyone. I hope I'm audible. Welcome to Hexaware Technologies Q4 CY '25 earnings call. In the call today, we have with us Mr. R.Srikrishna, CEO, Mr. Vikash Jain, CFO. In the course of this call, we may make certain forward-looking statements, which may involve a number of risks and uncertainties.
All forward-looking statements made herein are based on the information available currently with the management, and the company does not undertake to update any of these statements made in the course of this call. In this regard, there is a full disclosure which has been provided in the earnings presentation and in the press
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