Carlyle-backed service provider Hexaware Technologies’ net profit fell 14.4% for the fourth quarter of the calendar year 2025 to Rs 291.6 crore as a seasonally weak quarter and one-time labour code charges impacted margins.
The mid-cap service provider pegged its labour code charges at Rs 111 crore. Its profit also fell 22.5% sequentially, compared with nearly Rs 370 crore at the end of September.
Revenue, however, grew 10.3% year-on-year to Rs. 3478.2 crore, though it fell 1.5% sequentially. In constant currency terms, revenue came in at $389 million, up 4.5% YoY.
The company reported its results in the calendar year format, releasing annual figures for 2025. In CY2025, Hexaware reported $1.5 billion in revenue, up 7.6% annually.
“While calendar year 2025 was a challenging year for the industry, we have accelerated deal wins in the later part of the year that sets us up for a better 2026,” chief executive R Srikrishna said.
“As a consequence of macroeconomic events, (easing tariffs), we're definitely seeing some improvements,” Srikrishna told ET in a virtual interaction. “It is not a strong recovery, but demand is looking better,” he said, highlighting that their headcount growth is because of anticipated growth in 2026.
Revenue growth in the December quarter was led by the banking segment that was up 11.1%, but three out of six segments saw sequential decline, while financial services was flat. Annually, however, all but the hi-tech segment registered growth.
The muted performance disappointed investors, with shares of the company closing 7.6% down at Rs 637 on the National Stock Exchange.
The decline follows a close to $300 billion rout on the stock market for tech stocks on Wednesday, as Anthropic’s AI offerings were set to have a deflationary impact on service providers.
The mid-cap service provider pegged its labour code charges at Rs 111 crore. Its profit also fell 22.5% sequentially, compared with nearly Rs 370 crore at the end of September.
Revenue, however, grew 10.3% year-on-year to Rs. 3478.2 crore, though it fell 1.5% sequentially. In constant currency terms, revenue came in at $389 million, up 4.5% YoY.
The company reported its results in the calendar year format, releasing annual figures for 2025. In CY2025, Hexaware reported $1.5 billion in revenue, up 7.6% annually.
“While calendar year 2025 was a challenging year for the industry, we have accelerated deal wins in the later part of the year that sets us up for a better 2026,” chief executive R Srikrishna said.
“As a consequence of macroeconomic events, (easing tariffs), we're definitely seeing some improvements,” Srikrishna told ET in a virtual interaction. “It is not a strong recovery, but demand is looking better,” he said, highlighting that their headcount growth is because of anticipated growth in 2026.
Revenue growth in the December quarter was led by the banking segment that was up 11.1%, but three out of six segments saw sequential decline, while financial services was flat. Annually, however, all but the hi-tech segment registered growth.
The muted performance disappointed investors, with shares of the company closing 7.6% down at Rs 637 on the National Stock Exchange.
The decline follows a close to $300 billion rout on the stock market for tech stocks on Wednesday, as Anthropic’s AI offerings were set to have a deflationary impact on service providers.
