1. At a Glance
Hexaware Technologies is doing all the right things—AI, cloud, acquisitions, and “offices in Chicago with good coffee.” Q1 FY26 revenue at ₹3,261 Cr (+11% YoY), PAT at ₹380 Cr (+38% YoY). And they just acquired SMC Squared for up to $120M. So yeah, Hexaware’s not here to code quietly. It’s here to scale loud and scale global.
2. Introduction with Hook
Hexaware is that IT company you almost forgot existed—until it threw $120M at a US acquisition, got cozy with Fixie.ai and Abluva, and said, “Let’s do AI… the enterprise way.”
Think of it as TCS’s Gen-Z cousin — obsessed with GenAI, faster on the cloud, and now opening delivery centers like it’s launching Starbucks outlets.
3. Business Model (WTF Do They Even Do?)
Hexaware = AI-first digital IT + enterprise cloud + GCC solutions.
Their offerings include:
- Digital Core Transformation (SAP, Oracle, MS)
- CloudOps + DevSecOps
- Data & AI services (with Ultravox AI voice bots)
- GCC Enablement (SMC Squared acquisition is key here)
In short, they automate your backend while pitching like it’s ChatGPT-powered magic.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 | TTM |
|---|---|---|---|---|
| Revenue (Cr) | 10,380 | 11,974 | 12,759 | 12,759 |
| PAT (Cr) | 998 | 1,174 | 1,327 | 1,327 |
| OPM (%) | 15% | 15% | 15% | 15% |
| ROE (%) | 23% | 23% | 23% | 23.3% |
| EPS (₹) | 33.22 | 19.36* | 21.85 | 21.85 |
*FY24 had capital restructuring, so ignore the drop.
Margins are stable. Profit is trending up. This isn’t your average software company playing musical chairs on margin profiles.
5. Valuation
- P/E: 38x
- P/BV: 8.67x
- Market Cap: ₹50,326 Cr
- Fair Value Range (EduAdjusted):
- 30x–35x on FY26E EPS (₹25–27): ₹750–945
Expensive? Yes. Overhyped? Not really. They’re earning it — and then spending it.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 PAT up 38% — spicy
- SMC Squared Acquisition ($120M) – expanding Global Capability Centers (GCC) biz
- New Subsidiary in Colombia – because Latin America wants AI too
- Multiple partnerships – Fixie.ai (voice AI), Abluva (life sciences compliance AI)
- Opened UK HQ, Chicago office – aggressive global scaling
If you’re seeing more press releases than product releases, you’re not alone. But hey, they’re executing.
7. Balance Sheet
| Metric | Dec 2022 | Dec 2023 | Dec 2024 | Jun 2025 |
|---|---|---|---|---|
| Equity Capital (₹Cr) | 60 | 61 | 61 | 61 |
| Reserves (₹Cr) | 4,063 | 4,574 | 5,296 | 5,744 |
| Borrowings (₹Cr) | 456 | 394 | 574 | 582 |
| Total Assets (₹Cr) | 6,514 | 7,202 | 8,994 | 9,298 |
Balance sheet is bulking up, but still healthy. Debt levels are moderate, nothing that’d scare even the most caffeine-deprived CFO.
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹Cr) | CFI (₹Cr) | CFF (₹Cr) | Net Flow |
|---|---|---|---|---|
| FY23 | 1,516 | -284 | -750 | +482 |
| FY24 | 1,548 | -663 | -682 | +203 |
Still throwing off cash like a well-oiled SaaS platform (minus the SaaS).
Capital allocation leans toward expansion and acquisitions – we like.
9. Ratios – Sexy or Stressy?
| Ratio | Value | Comment |
|---|---|---|
| ROE | 23.3% | Consistently high |
| ROCE | 29.5% | Elite for mid-cap IT |
| OPM | 15% | Stable, respectable |
| D/E Ratio | 0.1x | Chill. They’re not overleveraged |
| P/E | 38x | Pricey, but not unjustified |
10. P&L Breakdown – Show Me the Money
| FY | Revenue (₹Cr) | EBITDA (₹Cr) | PAT (₹Cr) |
|---|---|---|---|
| FY22 | 9,200 | 1,226 | 884 |
| FY23 | 10,380 | 1,572 | 998 |
| FY24 | 11,974 | 1,835 | 1,174 |
| FY25 | 12,759 | 1,914 | 1,327 |
Growth rate = Real.
No “one-off sugar rush” here. This is a slow-cooked IT thali.
11. Peer Comparison
| Company | Rev (₹Cr) | PAT (₹Cr) | P/E | ROCE (%) |
|---|---|---|---|---|
| TCS | 2,56,000 | 49,273 | 23 | 65 |
| Infosys | 1,65,000 | 27,266 | 23.6 | 37.5 |
| Persistent | 12,535 | 1,518 | 53.3 | 30.4 |
| Hexaware | 12,759 | 1,327 | 38.0 | 29.5 |
Hexaware’s valuation sits between TCS and Persistent, and rightfully so. Solid mid-cap story with scalable DNA.
12. Miscellaneous – Shareholding, Promoters
| Group | Jun 2025 |
|---|---|
| Promoters | 74.57% |
| FIIs | 9.76% |
| DIIs | 9.87% |
| Public | 5.61% |
Promoters are clearly bullish. Public float is thin, which means less liquidity, more volatility — and those 4% swings? Yeah, expect more.
13. EduInvesting Verdict™
Hexaware is not your sleepy mid-cap IT stock anymore. With bold acquisitions, AI-pushed narratives, global expansions, and consistent earnings — this is an IT growth story wearing enterprise boots.
Sure, 38x P/E means you’re not early to the party, but at least the DJ’s still playing.
A serious player in the mid-cap AI x IT sandbox. Don’t ignore it. Don’t worship it. Watch it.
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Hexaware Technologies, Midcap IT, Q1 FY26, GCCs, AI SaaS, EduInvesting Premium
