Hexaware Technologies Achieves 7.6% YoY Revenue Growth in CY25 with Q4 Highlights

Hexaware Technologies Reports Strong Financial Performance in CY25

Hexaware Technologies, a prominent player in the IT solutions and services sector, has revealed its impressive financial outcomes for the calendar year 2025. The company recorded an annual revenue of USD 1,537.4 million, reflecting a year-on-year growth of 7.6%.

Q4 Financial Highlights

In the fourth quarter, Hexaware generated revenue of USD 389 million, marking a 4.5% increase from the previous year. Despite a slight dip of 1.5% compared to the preceding quarter, the overall performance in terms of year-on-year growth remains commendable. The company's EBITDA also saw a positive trend, expanding by 8.6% year-on-year, which underlines its operational efficiency.

Key Metrics and Client Relationships

The company added a noteworthy client in the USD 100 million-plus category and another in the USD 50 million-plus segment, signifying robust business development efforts. Furthermore, the concentration of revenue from the top 10 clients was recorded at 36.4% in CY25, indicative of healthy customer engagement and loyalty.

Employee Growth and Utilization Rate

Hexaware's workforce expanded to 33,844 employees by the end of 2025, with a net addition of 1,535 employees compared to the previous year. This growth suggests the company's commitment to scaling operations to meet increasing demand. Moreover, the utilization rate for IT services stood at an impressive 80.8% for Q4CY25, showcasing the efficiency of its workforce.

Challenges and Resilience

Despite the financial gains, the company did encounter challenges, particularly in profitability with a decline in PAT (profit after tax) by 14.4% on a year-on-year basis for Q4. This indicates an area that requires attention as the company navigates through the fluctuating economic landscapes. However, the leadership remains optimistic.

Leadership Insights

R. Srikrishna, CEO of Hexaware, emphasized the importance of speed and agility, citing that a new AI-enabled service is launched every month, targeting major clients within a 90-day timeframe post-launch. Similarly, CFO Vikash Jain highlighted the disciplined execution during a challenging macroeconomic year, contributing to a positive cash flow conversion rate exceeding 75%.

Sectoral Performance

Analyzing performance by verticals reveals varied trends: while the financial services sector exhibited a healthy increase of 14% year-on-year, sectors like healthcare and high-tech professional services faced more hurdles, recording negative growth rates.

Geographic Revenue Insights

Regionally, while performance in the Americas remained stable with a revenue growth of 9.5% for CY25, the Asia Pacific region saw some pressure with a slight decline of 1.3%. Europe demonstrated resilience, contributing positively with a 3.2% year-on-year increase in revenue.

Closing Thoughts

As Hexaware Technologies continues to harness AI and other advanced technologies to drive its business model, the coming years look promising. The strategic acquisitions and enhanced focus on innovation will undoubtedly facilitate enhanced growth and operational efficiencies. With strong leadership and a growing workforce, Hexaware is poised to tackle future challenges while capitalizing on new opportunities in the IT landscape.

For more insights, visit Hexaware Technologies.