Increase in Q2CY25 revenue for Hexaware reaches USD 382.1 million, marking an 8.6% year-on-year growth
Hexaware Technologies, a global digital and technology services company with AI at its core, has announced its financial results for the second quarter of 2025. The company reported a notable growth in revenue, profit, key client metrics, and strategic highlights.
Financial Results
The company's revenue reached approximately ₹3,208 crore (USD 382.1 million), reflecting a 16.7% year-on-year (YoY) and 1.7% quarter-on-quarter (QoQ) growth. Net income was ₹3800 crore, up 38% YoY. Net profit specifically stood at ₹327.20 crore, up 17% YoY and 2.6% QoQ. Profit before tax increased 4.63% QoQ and 21.94% YoY to ₹436.30 crore. Earnings per share (EPS) rose to INR 6.25, up 37.7% YoY and 16.2% QoQ. Operating profit decreased 39.5% QoQ but grew 28.85% YoY. EBITDA margin expanded by 156 basis points YoY. Days sales outstanding (DSO) was 73 days, with billed DSO at 40 days. Adjusted cash conversion for the last twelve months (LTM) was 75.5%, with strong cash reserves of INR 19,248 million as of June 30, 2025.
Key Client Metrics
Hexaware was ranked #1 in Service Delivery in the 2025 Whitelane Research IT Sourcing Study for the UK and Ireland. The company added one more client in the USD 50 million+ category, increasing the total number to four in the Q2 2025 LTM period.
Key People Metrics
Closing headcount was 32,410, with a net addition of 540 employees over the last twelve months. Voluntary attrition rate for IT roles stood at 11.1%. Utilization rate for IT staff was 83.7% in Q2 2025.
Leadership Speak
R. Srikrishna, CEO of Hexaware, stated, "In a difficult global macro environment, we had a solid quarter of execution on revenue, profitability and booking. More importantly, we continue to invest to make a rapid pivot to lead our customers into an AI-powered future." He also acknowledged challenges from elevated costs and subdued revenue growth impacting guidance, emphasizing ongoing investment despite the macro uncertainties.
Key Wins & Operational Highlights
Hexaware completed the acquisition of SMC Squared, a leader in building Global Capability Centers (GCC), and launched GCC 2.0 service line. Despite growth, revenue growth was impacted by declines in manufacturing and consumer segments and flat growth in financial services. The company’s strategic focus remains on enhancing service delivery, adding large customers, and strengthening cash positions to support digital transformation investments.
In summary, Hexaware demonstrated solid YoY revenue and profit growth, expanded high-value client relationships, grew employee base modestly, and continued strategic investments in new service offerings and capabilities in Q2 2025, albeit with some cautions on revenue guidance due to macroeconomic headwinds.
For more information about Hexaware Technologies, visit their official website at www.hexaware.com.
- The growth in Hexaware Technologies' revenue and net income, as well as their net profit and profit before tax, indicated a strong performance in the technology sector.
- Hexaware Technologies' investment in AI and other digital transformation initiatives was highlighted in the CEO's opinion, addressing the company's strategic focus on leading customers towards an AI-powered future.
- The company's focus on enhancing service delivery, adding large clients, and strengthening cash positions demonstrates their commitment to environmental sustainability, as these strategic decisions can contribute to responsible business practices and a healthier economy.
- In the news, Hexaware Technologies' financial results for Q2 2025 show a positive outlook for the technology industry, with growth in key client relationships and strategic investments in new service offerings. However, there are cautions on revenue guidance due to macroeconomic headwinds, indicating potential challenges ahead.
