Hexaware has released the transcript for its Q4 CY25 investor call held on February 5, 2026, detailing strong progress in its AI-first strategy. CEO R Srikrishna emphasized embedding AI across all platforms to positively impact every client daily. The company reported strong deal wins, crossing $4 billion in pipeline, and noted that full-year revenue growth was 7.6% (7.1% in constant currency). Management remains confident in achieving mid-to-high teens growth acceleration in CY26.
Q4 CY25 Earnings Call Summary
Hexaware Technologies provided the transcript for its Q4 CY25 earnings call on February 10, 2026. The discussion centered on the deep dive into the company’s AI strategy, which the management believes will help them reach their goal of positively impacting every client’s work daily sooner than anticipated.
The Four Pillars of AI Strategy
CEO R Srikrishna outlined four primary areas of AI implementation:
- Platform Reimagining: Building AI into platforms like Tensai (IT operations), RapidX (software engineering), and Amaze.
- New Revenue Streams: Creating and launching new services entirely enabled by AI.
- Workforce Training: Currently undertaking the second generation of retraining the workforce on AI.
- Process Redefinition: Re-engineering core processes, citing the complete overhaul of the SDLC (Software Development Life Cycle) due to AI integration.
Furthermore, the company highlighted putting an AI-first global multilingual help desk into production, serving 33,000 employees.
Financial Performance Highlights
CFO Vikash Jain reported Q4 revenue of $389 million, a sequential decline of 1.5% ($6 million decline), primarily attributed to seasonal factors like calendar and furloughs (a $9 million impact).
Key profitability metrics:
- Reported EBITDA margin was 17% for the quarter.
- Normalized margin stood at 15.4%, a sequential drop of 210 bps due to headwinds from Forex, hedging, calendar, and merit increases.
For the full year CY25:
- Revenue growth was 7.6% (7.1% in constant currency).
- Reported margin was 17.1%, an improvement of 120 bps year-over-year.
- Normalized full-year margin was 16.8%.
Vikash Jain noted several one-timers impacting EBITDA, including $25 million from earnout reversals (Softcrylic) and a $15 million impairment charge, totaling a 160 bps impact at the EBITDA level.
Deal Wins and Growth Outlook
Management called deal wins the “best part of Q4.” The pipeline crossed $4 billion for the first time. Key wins include a very large consolidation deal in Big Tech and the single largest deal with a global pet insurance company.
The company announced the formal launch of a new vertical, TPP (Technology, Products, and Platform), which will be reported separately starting Q1 CY26.
CY26 Guidance and Accelerators
R Srikrishna stated that the core thesis of low-teens growth with acceleration levers to mid-to-high teens remains intact for CY26.
- Revenue Dampener: AI productivity gains are expected to dampen revenue growth in existing renewals by 20% to 40% in the short term, which has been factored into forecasts.
- New Opportunities: The potential to replace SaaS creates a massive opportunity.
- Vertical Outlook: Banking and H&I are expected to lead growth. Professional Services and M&C are expected to trail company average growth initially.
- Margin Outlook: EBIT reporting will start in Q1. The full-year EBIT outlook is set at 13% to 14%, expected to recover sharply in H2.
The management confirmed headcount closing at nearly 34,000, with attrition remaining low at 11% in IT.
Source: BSE
