Hexaware Technologies, a Mumbai-based global IT solutions provider, announced its Q2CY25 financial results on July 25, 2025, showcasing revenue of USD 382.1 million (INR 32,607 million), an 8.6% YoY and 2.8% QoQ increase. EBITDA reached USD 65.9 million (INR 5,644 million), up 19.4% YoY with a 156 bps margin expansion to 17.2%, though one-off costs impacted margins. Basic EPS surged 37.7% YoY to INR 6.25, driven by a net profit of INR 3,797 million, up 38.3% YoY. Despite a 7.13% stock decline due to higher expenses, Hexaware’s AI-driven services, client wins, and acquisition of SMC Squared LLC for USD 120 million position it for growth in the $500 billion IT services market.
Announced July 25, 2025: Q2CY25 revenue at USD 382.1M, up 8.6% YoY.
EBITDA at USD 65.9M, up 19.4% YoY; margin at 17.2%, up 156 bps.
EPS at INR 6.25, up 37.7% YoY; net profit at INR 3,797M, up 38.3%.
Acquired SMC Squared LLC for USD 120M to enhance GCC expertise.
Added 1 client to USD 50M+ category, totaling 4; headcount at 32,410.
IT services market valued at $500B, projected to reach $700B by 2030.
Hexaware’s Q2CY25 performance reflects solid execution despite a challenging macro environment:
Revenue: USD 382.1 million (INR 32,607 million), up 8.6% YoY (USD), 11.1% YoY (INR), 2.8% QoQ (USD), and 1.6% QoQ (INR). Constant currency growth was 7.5% YoY and 1.3% QoQ, slightly below analyst expectations of 2.5% QoQ.
EBITDA: USD 65.9 million (INR 5,644 million), up 19.4% YoY and 6.1% QoQ, with a reported margin of 17.2% (up 156 bps YoY, 53 bps QoQ). Adjusted EBITDA was INR 5,900 million with an 18.1% margin, impacted by one-off costs of INR 142 crore, including INR 78.2 crore in customer provisions and INR 12 crore in ERP transformation.
Net Profit: INR 3,797 million, up 38.3% YoY and 16.1% QoQ, driven by strong demand and an effective tax rate, per CFO Vikash Jain.
EPS: INR 6.25, up 37.7% YoY and 16.2% QoQ, reflecting robust profitability.
Cash Position: INR 19,248 million in cash and equivalents as of June 30, 2025, with adjusted cash conversion at 75.5% LTM and LTM OCF/Reported EBITDA at 79.4%.
Hexaware added one client to its USD 50M+ annual billing category, reaching four, and secured key wins, including legacy modernization with RapidX™ for a major airline and AI-driven services for a US fintech firm. The USD 120 million acquisition of SMC Squared LLC strengthens its global capability center (GCC) expertise. However, a 7.13% stock drop to INR 767.65, wiping out INR 58.95 per share, reflected investor concerns over one-off expenses and a 1.3% constant currency growth miss versus 2.5% expectations. EBITDA margins fell to 12.4% from 14.7% YoY due to these costs, though adjusted margins held at 18.1%.
With 32,410 employees across 28 countries, Hexaware serves 31 Fortune 500 clients, including top banks and fintech firms, leveraging AI platforms like Amaze® and RapidX™. Its market cap stands at INR 50,338 crore, despite a 7% stock decline. The $500 billion IT services market, with 60% of enterprises prioritizing AI-driven transformation per 2025 reports, is projected to reach $700 billion by 2030. Hexaware’s #1 ranking in the 2025 Whitelane Research IT Sourcing Study for UK & Ireland and low 11.1% IT attrition rate bolster its competitive edge against peers like Infosys and TCS.
The IT services sector faces delayed large-deal decisions, with 50% of firms citing economic uncertainty, per 2025 reports. Posts on X reflect mixed sentiment: @CNBCTV18Live and @gaze_observer noted margin pressure and weak EBITDA ex-other income, while @EquiNews_India and @Investor_Feed praised revenue and EPS growth. Hexaware’s acquisition and interim dividend of INR 5.75/share signal confidence, but subdued large-deal expectations temper outlook. Its May 2025 Colombia subsidiary plan with a USD 2M investment further diversifies its footprint.
Hexaware’s Q2CY25 results highlight resilience and AI-driven innovation, positioning it for sustained growth despite near-term challenges in the global IT services landscape.
We are a global digital and technology services company with artificial intelligence ('AI') at its core. We leverage technology to deliver innovative solutions that help our customers in their digital transformation journey and subsequent operations. We embed AI into every aspect of our solutions and have created a suite of platforms and tools that allow our customers to adapt, innovate, and optimize in this AI-first era. We serve a diverse range of customers, including 31 Fortune 500 organizations. With a team of 32,410 employees in 28 countries, our presence is spread across major countries, nationalities, languages, time zones, and regulatory zones.
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