ICICI Securities Initiates Coverage on Hexaware Technologies, Assigns Price Target of Rs 580

Hexaware Technologies Reports Better-Than-Expected Q1CY26 Earnings

Hexaware Technologies, a leading IT services company, has reported revenue growth and EBIT margins that slightly exceeded the company's initial expectations for the first quarter of calendar year 2026 (CY26). The company's quarterly performance was driven by healthy deal bookings, including several vendor consolidation deals, and an improving growth outlook in the manufacturing sector.

However, Hexaware's revenue growth in the travel vertical was impacted by a slowdown due to macroeconomic weakness resulting from the ongoing Middle East conflict. Despite this, the company remains confident in its guidance for CY26, aiming to deliver at least 7.6% year-over-year (YoY) USD growth for the full year.

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The company's strong quarterly performance is expected to continue over the course of the year, driven by operating leverage and improving margins. As Hexaware's management continues to execute its growth strategy, investors may benefit from the company's attractive valuation and improving revenue growth and margin profile.

Valuation and Recommendation

ICICI Securities values Hexaware Technologies at 20 times its calendar year 2027 earnings per share (EPS) of INR 29, resulting in a target price of INR 580. The brokerage firm maintains a BUY recommendation on the stock, citing its attractive valuation and improving revenue growth and margin profile.