Stock Performance and Market Context
On 25 Feb 2026, Hexaware Technologies Ltd (Stock ID: 316432) recorded its lowest price in the last year at Rs.471, down 2.03% on the day. The stock has underperformed its sector by 3.07% today, while the IT - Software sector gained 2.48%. Over the last six consecutive trading days, the stock has declined by 20.66%, reflecting a persistent negative momentum. Intraday, the stock touched a high of Rs.488.3, but was unable to sustain gains.
Hexaware is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical setup. This contrasts with the broader market, where the Sensex rose by 0.83% to 82,906.45, closing just 3.92% below its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating an overall positive market trend, supported by mega-cap stocks.
Long-Term and Recent Returns
Hexaware’s one-year performance stands at -43.16%, significantly lagging the Sensex’s 11.13% gain over the same period. The stock’s 52-week high was Rs.900.15, underscoring the extent of the recent decline. Additionally, the stock has underperformed the BSE500 index over the last three years, one year, and three months, reflecting challenges in maintaining investor confidence and market positioning.
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Financial Metrics and Profitability
Despite the stock’s price decline, Hexaware’s financial fundamentals present a mixed picture. The company reported flat results for the quarter ending December 2025, with PBDIT at Rs.377.90 crores, the lowest in recent quarters. The operating profit to net sales ratio also hit a low of 10.86%, indicating margin pressures. Profit before tax excluding other income stood at Rs.223.00 crores, marking a subdued profitability phase.
On a positive note, Hexaware maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure. The return on equity (ROE) remains attractive at 23.3%, and the price-to-book value ratio is 4.6, suggesting valuation metrics that are not excessively stretched. Over the past year, the company’s profits have increased by 24%, indicating operational resilience despite the stock price weakness.
Shareholding and Pledged Shares
A notable concern is the 100% pledge of promoter shares, which has doubled over the last quarter. High promoter pledge levels can exert additional downward pressure on stock prices during market declines, as pledged shares may be subject to liquidation in adverse conditions. This factor adds to the stock’s vulnerability amid the current market environment.
Sector and Market Comparison
While Hexaware has struggled, the broader IT - Software sector has shown strength, gaining 2.48% on the day. The Sensex’s positive trajectory, led by mega-cap stocks, contrasts with Hexaware’s underperformance. This divergence highlights sector rotation and selective investor preference within the technology space.
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Summary of Key Concerns
The stock’s persistent decline over six sessions, culminating in a 52-week low of Rs.471, reflects a combination of factors including subdued quarterly profitability, margin compression, and the impact of fully pledged promoter shares. The technical picture remains weak with the stock trading below all major moving averages. Furthermore, the stock’s long-term underperformance relative to the Sensex and BSE500 indices underscores ongoing challenges in regaining market momentum.
Valuation and Quality Assessment
Hexaware’s current Mojo Score stands at 51.0 with a Mojo Grade of Hold, upgraded from Sell on 20 Feb 2026. The market capitalisation grade is low at 2, consistent with its mid-cap status. The company’s attractive ROE and low leverage provide some stability, but these have not translated into positive price action in the near term. Investors may note the contrast between improving profit metrics and the stock’s price trajectory.
Conclusion
Hexaware Technologies Ltd’s fall to a 52-week low of Rs.471 highlights the stock’s ongoing challenges amid a generally positive market backdrop. While the company exhibits solid profitability ratios and a conservative balance sheet, the stock’s technical weakness and high promoter pledge levels have contributed to its recent price decline. The divergence between sector gains and Hexaware’s performance emphasises the selective nature of market movements within the IT - Software industry.
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