1. At a Glance – The “Welcome Back to the Market” Slap
Hexaware Technologies is that friend who left the party in 2020, came back in 2025 with a fancy AI pitch deck, and immediately got roasted by the market. Listed again in February 2025 after voluntary delisting in 2020, Hexaware is now sitting at a market cap of ₹39,103 crore, a current price of ₹640, and a rather humbling -10.8% return over the last six months.
Despite that, the company quietly delivered ₹13,430 crore in FY25 revenue, ₹1,451 crore PAT, ROCE of 30%, and ROE of ~25%. Not exactly weak tea.
Stock P/E sits at ~27x, slightly above the IT services median but below the froth of Persistent and LTIMindtree. Dividend yield of 1.79% keeps income investors mildly entertained. Debt is ₹681 crore, which for a company throwing out ₹1,700+ crore operating cash flows annually is more “speed breaker” than “accident zone”.
Latest quarterly numbers show ₹3,478 crore revenue and ₹365 crore PAT, with YoY growth in both sales (10.3%) and profits (14.4%). So yes, business is growing. The stock? Still sulking.
Question is simple: is Hexaware an AI-powered compounding machine… or just another IT services firm wearing a GenAI hoodie?
2. Introduction – The IT Midcap That Refuses to Be Boring
Hexaware is not a startup pretending to be AI-first. It’s also not a dinosaur surviving on legacy ERP projects. It’s that awkward middle child—old enough to have seen COBOL, young enough to talk about GenAI without stuttering.
Founded in 1992, Hexaware spent decades quietly compounding revenue at mid-teens CAGR. Then in 2020, promoters said, “Public markets don’t get us,” pulled the plug, and delisted. Fast forward five years, the same company comes back with an IPO of ₹8,750 crore, shouting AI! Platforms! Automation!.
And the market replied: “Cool story, bro. Here’s a -7% day.”
But beneath the price action drama lies a business with:
- Consistent double-digit sales growth
- Improving working capital discipline
- Strong client diversification
- And a serious push into AI-led platforms like Amaze®, Tensai®, and RapidX™
Hexaware is not trying to be
TCS. It’s trying to be the fast, flexible, automation-heavy IT partner for enterprises who don’t want a 3-year transformation roadmap written in PowerPoint.
Does it succeed? Financials suggest yes. Valuations suggest the market is still unconvinced.
3. Business Model – WTF Do They Even Do?
Explaining Hexaware is simple:
They take messy enterprise IT and clean it up using automation, AI, and cloud.
But they don’t sell “hours”. They sell outcomes. At least, that’s the pitch.
Their service stack looks like this:
- Design & Build – New-age software, digital products, ERP implementations. Basically, “Let us modernise your tech before it collapses.”
- Secure & Run – Managing and optimising existing IT estates. Less sexy, very profitable.
- Data & AI – Analytics, ML, AI-led decision systems. This is where management drops buzzwords with confidence.
- Optimize (BPS) – Business process services with GenAI overlays. Think automation instead of call-centre armies.
- Cloud Services – Migration, modernisation, and cloud ops. The plumbing behind everything else.
What makes Hexaware interesting is platformisation. Tools like Amaze (cloud), Tensai (automation), and RapidX (digital transformation) are reused across clients. That improves margins and reduces dependence on pure manpower billing.
Still, let’s be clear: this is an IT services company first, AI company second. No amount of branding changes that.
4. Financials Overview – Numbers Don’t Lie, Stock Prices Do
Quarterly Comparison Table (₹ crore)
| Metric | Latest Qtr (Dec FY25) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 3,478 | 3,154 | 3,484 | 10.3% | -0.2% |
| EBITDA | 378 | 490 | 601 | -22.9% | -37.1% |
| PAT | 292 | 321 | 370 | -9.0% | -21.1% |
| EPS (₹) | 4.78 | 5.25 | 6.08 | -9.0% | -21.4% |
