Global IT services firm records Q4 revenue of USD 389 million with EBITDA margin expansion of 65 basis points year-over-year. Full-year performance is supported by strategic AI launches and the completion of two capability-led acquisitions.
Hexaware Technologies Limited (NSE: HEXT) announced its audited standalone and consolidated financial results for the quarter and year ended December 31, 2025, on February 4, 2026. The company reported a full-year revenue of USD 1,537.4 million, representing a 7.6% year-over-year increase. Full-year reported profit reached INR 13,683 million, a 16.6% increase from the previous year. Following the relisting of its equity shares on February 19, 2025, the company maintained a strong cash and cash equivalents position of USD 237 million as of year-end.
Latest Quarterly Results and Highlights
For the fourth quarter of 2025 (Q4CY25), revenue was USD 389.0 million, showing a 4.5% year-over-year increase but a 1.5% sequential decline. Reported EBITDA for the quarter was INR 5,915 million, with a margin of 17.0%, which reflects a 65 basis point expansion compared to Q4CY24. Basic earnings per share (EPS) for Q4CY25 was INR 4.79, down from INR 5.25 in the same period last year. Utilization rates for IT professionals stood at 80.8%.
Performance by Business Vertical and Geography
The Financial Services vertical remained the largest contributor, accounting for 30.1% of Q4 revenue. Healthcare & Insurance followed at 20.6%, while Manufacturing & Consumer contributed 16.3%. The Banking segment recorded the highest sequential growth in Q4 at 11.1%. Geographically, the Americas generated 74.2% of revenue, followed by Europe at 19.4% and Asia Pacific at 6.4%.
Where Does Hexaware Technologies Limited Stand Today?
Hexaware operates as a global digital and technology services company with artificial intelligence (AI) at its core. The company currently serves over 30 Fortune 500 organizations and employs a team of 33,844 professionals across more than 30 countries. It holds market leadership positions in several areas, including being ranked among the Top 25 IT Services Brands globally for the second consecutive year.
Core Growth Strategies and Strategic Expansion
Strategic progress in 2025 focused on AI-led modernization and acquisitions. The company launched three new AI offerings in Q4 and plans to introduce a new AI-enabled service every month. Key segment developments included the launch of the Technology Products and Platforms (TPP) vertical. Strategic expansion was furthered by the 100% ownership acquisitions of SMC Squared LLC in July 2025 and CyberSolve (Identity and Access Solutions LLC) in November 2025.
Management Commentary and Shareholder Value
Management, led by CEO R. Srikrishna and CFO Vikash Jain, highlighted that 2025 was a challenging year for the industry, yet the company accelerated deal wins in the second half. For shareholder value, Hexaware paid an interim dividend of INR 11.5 per share during CY25. The company demonstrates robust capital strength with a cash conversion rate (LTM OCF to Adjusted EBITDA) of 75.8%.
Regulatory Milestones and Segment Updates
A significant regulatory milestone was the notification of new Indian Labour Codes, which resulted in an exceptional incremental impact of INR 1,111 million in gratuity and compensated absence provisions. In segment updates, the company is changing its profit reporting to EBIT starting in 2026. It is also progressing on multiple mergers of its wholly owned subsidiaries, including Mobiquity Inc. and Softcrylic LLC, to streamline operations.
Future Outlook and Broader Industry Trends
Hexaware expects its reported revenue growth in CY26 to exceed the 7.6% achieved in CY25. The company has set a CY26 EBIT margin outlook of 13.0% to 14.0%. While broader industry trends show a cautious demand environment, management noted that decision-making is improving. Banking and Healthcare & Insurance are expected to lead growth in the coming year.