Hexaware Technologies Releases Q4 CY25 Earnings Call Transcript
Hexaware Technologies released its Q4 CY25 earnings call transcript. The company discussed its AI strategy, including new platforms and services. Q4 revenue was $389 million, a 1.5% sequential decline. Full-year revenue grew 7.6%. Reported EBITDA was 17%, with normalized EBITDA at 15.4%. For CY26, revenue growth is expected to exceed 7.6%, with margins projected at 13-14%.
The announcement provides detailed financial results for the quarter and year, along with future outlook and strategic initiatives. This information is material for investors and analysts in assessing the company's performance and future prospects, impacting investment decisions.
The announcement is a transcript of an earnings call, which is primarily informational. While it discusses future growth expectations and AI strategy positively, it also acknowledges lower-than-expected Q4 revenues and a projected lower margin range for the next year, balancing the sentiment.
Hexaware Technologies Limited has released the transcript of its investor/analyst call held on February 5, 2026, for the quarter and year ended December 31, 2025. The transcript is available on the company's website.
During the call, CEO R Srikrishna discussed the company's strategy centered around Artificial Intelligence (AI), emphasizing its integration into platforms like Tensai, RapidX, and Amaze. He highlighted the company's efforts in retraining its workforce on AI and reimagining processes such as SDLC. Srikrishna outlined two primary AI narratives for clients: 'AI for IT,' where Hexaware focuses on productivity and velocity, and 'AI for Business,' where the company enables clients to achieve their strategic goals. He mentioned specific AI-driven offerings including RapidX for legacy reverse engineering, a vibe coding offering, and a new service addressing Agentic AI's potential to replace SaaS products. The company is also building its Tensai platform for AI in outsourcing, aiming for 80 supervisory agents supported by 400 atomic agents.
The company reported that its revenues for Q4 were slightly lower than expected due to a substantial cut from a GSE client (impacting ~70 bps annualized), a client furlough, and lower pass-through revenues. Despite this, absolute reported profitability was solid, with outstanding cash conversion and balance. The company secured numerous deals in Q4, including a significant consolidation deal in big tech, a deal with a large pet insurance company for integrating acquired entities, and a role in a core modernization for a large insurance company. Other wins included deals with a global casual dining holding company, a large tech services company in Asia, and a PBM working with a PE firm.
CFO Vikash Jain provided financial details, stating Q4 revenue was $389 million, a sequential decline of 1.5% ($6 million), primarily driven by seasonal calendar and furlough impacts ($9 million), lower license revenues ($7 million), and marginal Forex headwinds. Reported EBITDA was 17%, with normalized EBITDA at 15.4% after accounting for one-timers. These one-timers included reversals of earnouts related to the Softcrylic acquisition ($25 million), an impairment charge ($15 million), and an additional expected credit loss provision ($4 million). An accelerated amortization for unused office space due to restructuring in Europe also impacted EBIT by $3.5 million. The impact of the labor code change was $12.5 million for Q4.
For the full year, revenue grew 7.6% (7.1% in constant currency), and reported margin improved to 17.1% from 15.9% last year. Financial Services was the strongest performing vertical, followed by Banking and H&I. The company added one client in the over $50 million category, bringing the total to two clients above $100 million and one client above $50 million. Headcount increased by 1,535 for the full year, with IT adding 2,000 resources. Utilization saw a 300 bps decline sequentially, attributed to furlough, increased leaves, and building bench for new deals, with an expected recovery in the next quarter.
Looking ahead to CY26, Hexaware expects revenue growth to be better than CY25's 7.6%, with a core thesis of low-teens base growth and acceleration to mid-to-high teens. The company anticipates strong sequential growth acceleration from Q2 onwards. Margins are projected to be between 13-14% for CY26, with an expectation of a stronger exit in H2. The company will change its reporting to EBIT from Q1 CY26.
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Hexaware Technologies Limited filed this with the NSE as a statutory disclosure, categorised under concall transcript released. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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