Are Hexaware Technologies Ltd latest results good or bad?

Hexaware Technologies Ltd's latest financial results for the quarter ended March 2026 present a mixed operational picture. The company reported net sales of ₹3,613 crores, reflecting a year-on-year growth of 12.63% compared to ₹3,207.90 crores in the same quarter last year. This growth indicates a solid performance in terms of revenue generation, supported by sustained client acquisitions and project ramp-ups across key verticals. Net profit for the quarter stood at ₹351.60 crores, which represents a year-on-year increase of 7.46% from ₹327.20 crores in the previous year. However, this growth is notably lower than the previous year's performance, suggesting some challenges in maintaining momentum. Despite the positive revenue and profit figures, the operating margin excluding other income contracted to 15.80%, down from 16.45% in the same quarter last year. This decline in margin highlights operational pressures, particularly in managing costs, as employee expenses rose significantly, outpacing revenue growth. The volatility in other income, which dropped sharply from ₹213.60 crores in the previous quarter to ₹21.70 crores, further complicates the assessment of underlying operational performance. Overall, while Hexaware Technologies has demonstrated strong revenue growth and a modest increase in net profit, the significant margin compression and volatility in other income raise questions about the sustainability of its operational performance. The company has experienced an adjustment in its evaluation, reflecting these mixed results and the broader challenges faced in the IT services sector.