Hexaware Technologies Ltd Falls to 52-Week Low of Rs.520.5

Recent Price Movement and Market Context

On 20 Feb 2026, Hexaware Technologies Ltd’s share price touched an intraday low of Rs.520.5, closing the day with a decline of 4.13%. This drop extended the stock’s losing streak to three consecutive sessions, during which it has fallen by 12.46%. The stock’s performance notably lagged behind the Computers - Software & Consulting sector, underperforming by 3.41% on the day.

Hexaware’s current price is substantially below its 52-week high of Rs.900.15, representing a decline of approximately 42.2% from that peak. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the broader market has shown resilience. The Sensex recovered sharply after a negative opening, closing at 82,912.69, up 0.5% on the day and just 3.92% shy of its own 52-week high of 86,159.02. Mega-cap stocks led the market rally, while Hexaware’s mid-cap status and sector-specific challenges have contributed to its relative underperformance.

Financial Performance and Profitability Metrics

Hexaware’s recent quarterly results have been subdued. The company reported a PBDIT (Profit Before Depreciation, Interest and Taxes) of Rs.377.90 crores, marking the lowest quarterly figure in recent periods. Correspondingly, the operating profit margin to net sales fell to 10.86%, also the lowest recorded in the quarter under review. Profit Before Tax (PBT) excluding other income stood at Rs.223.00 crores, reflecting a contraction in profitability.

Despite these challenges, the company’s return on equity (ROE) remains relatively attractive at 23.3%, indicating efficient utilisation of shareholder funds. Additionally, Hexaware maintains a low average debt-to-equity ratio of zero, underscoring a conservative capital structure with minimal leverage.

Shareholding and Promoter Pledge Concerns

A notable factor contributing to the stock’s pressure is the 100% pledge of promoter shares. The proportion of pledged holdings has doubled over the last quarter, intensifying the risk perception among market participants. In declining markets, high promoter pledge levels often exert additional downward pressure on share prices, as pledged shares may be subject to forced selling in adverse scenarios.

This elevated pledge level contrasts with the company’s otherwise stable financial metrics, highlighting a structural concern that may be influencing market sentiment and liquidity.

Long-Term and Relative Performance

Over the past year, Hexaware Technologies Ltd has delivered a total return of -34.89%, significantly underperforming the Sensex, which posted a positive return of 9.49% over the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating persistent challenges in generating market-beating returns.

While the company’s profits have increased by 24% over the past year, this improvement has not translated into share price gains, reflecting a disconnect between earnings growth and market valuation. The stock’s price-to-book value stands at 5.2, suggesting a valuation level that may be influenced by factors beyond immediate financial performance.

Mojo Score and Analyst Ratings

Hexaware Technologies Ltd currently holds a Mojo Score of 48.0, categorised as a Sell rating. This represents a downgrade from its previous Hold grade as of 15 Feb 2026. The company’s market capitalisation grade is rated at 2, reflecting its mid-cap status within the Computers - Software & Consulting sector.

The downgrade in rating aligns with the stock’s recent price weakness and subdued quarterly results, signalling a cautious stance from the analytical framework employed.

Summary of Key Metrics

To summarise, the stock’s key data points as of 20 Feb 2026 are:

• New 52-week low price: Rs.520.5
• 52-week high price: Rs.900.15
• One-year return: -34.89%
• Sensex one-year return: +9.49%
• Operating profit margin (quarterly): 10.86%
• PBDIT (quarterly): Rs.377.90 crores
• PBT excluding other income (quarterly): Rs.223.00 crores
• Return on equity: 23.3%
• Debt to equity ratio: 0 (average)
• Price to book value: 5.2
• Promoter shares pledged: 100%
• Mojo Score: 48.0 (Sell)

Market and Sector Comparison

While the broader market and mega-cap stocks have shown strength, Hexaware’s share price has not participated in this rally. The stock’s underperformance relative to the Sensex and its sector peers highlights the challenges it faces in regaining investor confidence amid current market conditions.

The company’s low leverage and improving profit figures provide some stabilising factors, but the high promoter pledge and recent earnings softness continue to weigh on the stock’s valuation and price momentum.

Conclusion

Hexaware Technologies Ltd’s fall to a 52-week low of Rs.520.5 reflects a confluence of factors including subdued quarterly earnings, elevated promoter pledge levels, and sustained underperformance relative to market benchmarks. The stock’s trading below all major moving averages underscores the prevailing bearish sentiment. While certain financial metrics such as ROE and profit growth remain positive, these have not yet translated into price recovery, leaving the stock at a critical juncture within its sector and market context.

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