Hexaware Technologies gave no revenue forecast for the December quarter and narrowed its CY26 adjusted EBIT margin range after Q3 sales grew 1.7% sequentially in constant-currency terms, leaving investors without a company estimate for the final quarter.
Revenue reached $411.9 million for the three months ended Sept. 30. It increased 1.6% from the preceding quarter in U.S. dollar terms and 1.7% in constant currency, which excludes exchange-rate changes. Year-over-year growth was 4.3% in U.S. dollars and 4.5% on a constant-currency basis.
Hexaware did not provide a specific Q4 revenue outlook on its Oct. 29 earnings call. Before the call, management’s latest CY26 revenue-growth range was 6%–7%, after an earlier outlook of 7.6%.
The company narrowed its full-year adjusted EBIT margin range to 13%–13.5%, from 13%–14%. For Q3, its reported EBIT margin was 12.2%; its adjusted EBIT margin was 13.8%, up 17 basis points sequentially.
Chief Executive Vivek Jetley said revenue fell short of plan as business from one client weakened and several large deals progressed more slowly than expected. Chief Financial Officer Vikash Kumar Jain said a financial-services customer’s cost-cutting effort affected Q3 and was expected to continue affecting Q4. The customer had previously consolidated vendors, Jain said.
Jain also described furloughs and fewer working days as typical for the December quarter. He said seasonal pressure and merit increases effective Oct. 1 would weigh on margins, with the wage increases expected to have an impact of about 100 basis points.
NDTV Profit reported that Jefferies kept its Underperform rating and cut its target price to ₹470 from ₹500. The outlet also reported that Kotak maintained its Buy rating while reducing its fair-value estimate to ₹620 from ₹660.
Jetley said he plans to review Hexaware’s strategy, sales-to-revenue process and forecasting. He said he would share priorities and assumptions when the company reports full-year results.
