Hexaware Technologies Ltd Falls 12.02% Amid Margin Pressures and Technical Weakness

2 February 2026: Modest Gain Amid Market Weakness

Hexaware Technologies began the week on a positive note, rising 0.69% to close at Rs.702.40 despite the Sensex falling 1.03% to 35,814.09. The stock’s resilience contrasted with the broader market’s weakness, supported by a volume of 112,685 shares. This initial strength, however, was short-lived as the week progressed.

3 February 2026: Rally on Market Recovery

The stock surged 3.43% to Rs.726.50, outperforming the Sensex’s 2.63% gain to 36,755.96. This rally reflected a broader market rebound, with the stock’s volume declining to 73,006 shares. The price movement suggested temporary optimism, possibly driven by sectoral recovery and short-covering.

4 February 2026: Intraday Low Amid Price Pressure

On 4 February, Hexaware faced significant selling pressure, closing at Rs.690.30, down 4.98%. The stock touched an intraday low of Rs.693, reflecting a 4.61% drop from earlier levels. This decline occurred despite the IT - Software sector falling 5.47%, with Hexaware outperforming its sector by 1.08%. The stock traded below all major moving averages, signalling sustained short- and long-term selling pressure. The Sensex closed higher by 0.37%, underscoring the stock’s relative weakness amid a cautious market backdrop.

5 February 2026: Flat Quarterly Results and Technical Downgrade

Hexaware reported its highest-ever quarterly PAT of ₹391.43 crores for Q3 FY26 but revealed margin compression with operating profit margins falling to 10.86%, the lowest in recent quarters. Profit before tax excluding other income declined to ₹223.00 crores, and EPS dropped to ₹4.79. The stock reacted negatively, plunging 7.25% to Rs.640.25 on heavy volume of 423,038 shares. Technical indicators deteriorated further, with the Mojo Grade downgraded from Buy to Hold and the Mojo Score falling to 51.0. The stock traded below all key moving averages, and bearish momentum intensified amid elevated volatility. The Sensex declined 0.53% on the day, highlighting the stock’s sharper underperformance.

6 February 2026: New 52-Week Low Amid Continued Selling

Hexaware’s decline accelerated on 6 February, with the stock hitting a fresh 52-week low of Rs.572.25, down 6.43% on the day and 10.62% intraday from the previous close. The stock opened with a gap down of 2.7% and exhibited high intraday volatility of 31.66%. This marked the third consecutive day of losses, with a cumulative decline of 18.6% over this period. The stock underperformed its sector by 2.67% and the Sensex by 6.22 percentage points, closing at Rs.613.75. Technical indicators remained bearish, with the stock trading below all major moving averages. Elevated promoter share pledging at 100%, doubled over the last quarter, added to the negative sentiment. Despite a robust return on equity of 22.9% and a zero debt-to-equity ratio, the stock’s valuation and price action reflected significant near-term challenges.

Key Takeaways

Hexaware Technologies Ltd’s week was marked by a sharp reversal from early gains to sustained losses, culminating in a 12.02% weekly decline versus a 1.51% gain in the Sensex. The stock’s underperformance was driven by a combination of margin pressures, flat quarterly results, and deteriorating technical indicators. Despite reporting its highest-ever quarterly PAT of ₹391.43 crores, the company’s operating profit margins contracted to 10.86%, and EPS declined to ₹4.79, signalling margin stress.

Technical momentum shifted decisively bearish, with the stock trading below all major moving averages and the Mojo Grade downgraded from Buy to Hold, then to Sell. Elevated promoter share pledging at 100%, doubled over the last quarter, added to investor concerns, potentially increasing downside risk through forced liquidations. The stock’s valuation shifted from expensive to fair, with a P/E of 26.63 and P/BV of 6.74, offering a more balanced risk-reward profile relative to peers, though recent price action remains weak.

Volume spikes on down days, especially on 5 February, underscored heightened selling pressure. The three-day losing streak culminating in a 52-week low at Rs.572.25 highlights the stock’s vulnerability amid cautious market sentiment. While the company maintains strong return on equity and zero debt, the near-term outlook is clouded by margin contraction and technical weakness.

Conclusion

Hexaware Technologies Ltd’s performance in the week ending 6 February 2026 reflects a challenging phase characterised by margin pressures, technical deterioration, and significant price declines. The stock’s 12.02% weekly fall against a Sensex gain of 1.51% underscores its relative weakness amid a cautious market environment. Despite strong absolute profit figures, margin contraction and reliance on non-operating income raise concerns about sustainability.

Technical indicators remain bearish, with the stock trading below all key moving averages and hitting a 52-week low. Elevated promoter share pledging further complicates the outlook, potentially exacerbating downside risk. While valuation metrics have shifted to a fairer level, the stock’s recent underperformance and analyst downgrades suggest that investors should monitor developments closely. The company’s longer-term fundamentals remain intact, but near-term price action warrants caution as Hexaware navigates a complex operating and market landscape.

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