Hexaware Q2 revenue rises 6.1% as AI Labs pace monthly launches

The India-listed IT services firm posts $405m in quarterly revenue, with healthcare and APAC outperforming as AI-led deals multiply.

By Disrupts Editorial Team Fri, 14 August 2026

A brightly lit, modern control room features a multi-panel video wall displaying abstract blue shapes, a row of light wood desks with control panels, keyboards, mice, and chairs, and large windows revealing a city skyline.

Hexaware Technologies, the Mumbai-headquartered IT services group listed on India's NSE, reported second-quarter calendar-year 2026 revenue of USD 405.4 million, up 6.1% year-on-year and 4.4% sequentially, as demand for AI-integrated enterprise services offset continued softness in its travel and transportation vertical. EBIT reached USD 55.3 million, a margin of 13.6%, 68 basis points better than the prior quarter, though profit after tax fell 21.1% year-on-year to USD 34.9 million, reflecting cost pressures the company attributes in part to its ERP system go-live in the period.

The headline numbers place Hexaware in the mid-tier of India's listed IT services cohort, ahead of some smaller peers but well below the scale at which Infosys, Wipro and HCL Technologies operate. What distinguishes the quarter is the pattern of growth rather than its absolute size: healthcare and insurance expanded 18.9% year-on-year, manufacturing and consumer grew 17.9%, and Asia Pacific surged 24.8%, trajectories that suggest the company's AI-for-enterprise positioning is landing more cleanly in regulated, data-intensive verticals than in the technology-products segment, which contracted 3.1% sequentially.

AI Labs and the deal pipeline

CEO R. Srikrishna described the company's AI Labs as "innovating at remarkable speed, launching one new offering every month," framing that cadence as the foundation for sustained growth rather than a one-cycle bump. The claim carries the usual promotional caveat, but the deal disclosures add some texture. Hexaware reported wins spanning a German biotechnology company (AI for Business solutions), a leading American financial services firm (AI-led middle-office transformation), and a global clinical research organisation (CRM transformation), a spread that touches biotech, capital markets, and health informatics in a single quarter. A Zero License engagement with a capital markets institution also signals the company is competing on total-cost-of-ownership arguments as enterprise software licensing costs draw greater board scrutiny.

Headcount reached 34,506, with a net addition of 708 in the quarter. Voluntary IT attrition held at 11.2% on a trailing twelve-month basis, modest by the standards of India's services industry, where the post-pandemic hiring cycle drove that figure well above 20% at several large peers. Utilisation for IT professionals reached 84.8%, though Hexaware noted a methodology change that added 80 basis points to that figure by excluding platform employees from the denominator; the prior periods have not been restated, so year-on-year comparisons carry a small caveat.

The convergence read-across

For cross-sector strategists, Hexaware's quarter is a data point in a broader argument about where enterprise AI spend is actually landing. The hyperscaler narrative, that AI value accrues primarily to cloud infrastructure and foundation-model providers, is being complicated by the services layer. Firms like Hexaware sit between the model and the enterprise workflow, packaging AI capabilities into vertical-specific solutions that clients in healthcare, capital markets, and manufacturing can deploy without building in-house. The volume of AI-adjacent deal wins this quarter suggests that mid-market enterprises, particularly in Europe and APAC, are accelerating procurement of this integration layer rather than waiting for their own AI strategies to mature.

The geography shift is also worth noting for investors tracking the post-globalisation capital reallocation thesis. Europe grew 11.2% year-on-year for Hexaware, and APAC grew 24.8%, both outpacing the Americas at 3.5%. That pattern echoes broader data points from the Indian IT services sector suggesting European and Asia-Pacific enterprises are moving faster on AI-led transformation engagements than their US counterparts, where spend scrutiny and tariff-related uncertainty are creating drag. For macro investors with exposure to both the India IT services sector and the enterprise software stack, the services layer is emerging as an underappreciated beneficiary of the AI capital cycle.