Hexaware shares soar 8% after AI Day; CLSA, Jefferies, HSBC set price targets

A host of brokerages, including CLSA, Kotak Institutional Equities and Axis Capital, retained their ‘Buy’ or ‘Accumulate’ ratings on Hexaware Technologies Ltd following its AI Day, where the IT firm outlined how it intends to use AI to create new revenue streams while improving profitability. The key takeaways from the event included the “Zero Friction, Infinite Momentum” strategy that addresses six interdependent areas – vulnerabilities, tech debt, backlogs, defects, tickets and software licences.

Hexaware said AI adoption is meaningful with 900-plus agents in production, 70 per cent-plus of delivery being AI-assisted, 46 per cent-plus of the client base delivering AI, and 50 per cent-plus of active engagements being AI/AI-infused.

JM Financial said Hexaware is targeting a 30 per cent win-ratio target, and identifying and aggressively pursuing $100 million-plus deals.

"New revenue pools are emerging across AI-for-AI, healthcare, market data, and professional services. v) AI-led productivity would be addressed through higher volumes, expanded scope, new revenue streams, and fixed total-cost/gain-share pricing. The strategy expands Hexaware’s addressable market; however, conversion into material revenue and bookings remains a key aspect to monitor in our view. Hexaware is trading at 20x CY27 consensus EPS; maintain ADD," it said while suggesting a target of Rs 605.

Among brokerages, Kotak Institutional Equities recommended a ‘Buy’ with a target price of Rs 660. CLSA set a target price of Rs 730, followed by IIFL at Rs 620 and Axis Capital at Rs 610. Jefferies maintained an ‘Underperform’ rating on the stock with a target price of Rs 500, the lowest among recent brokerage calls. ICICI Securities has a ‘Hold’ rating with a target price of Rs 580.

The stock rose 7.70 per cent to hit a high of Rs 574.20 on BSE.

MOFSL said while Hexaware has lowered its 2026 revenue guidance, the management commentary suggests that growth is largely being deferred rather than lost. Delayed deal ramp-ups, continued momentum in modernization programs, and healthy growth across banking, healthcare, and manufacturing should support a stronger exit in 2026 and provide a better starting point for CY27, it said.

This brokerage suggested a 'Buy' rating with a target of Rs 720, implying 35 per cent potential upside over Friday's closing price.

Nuvama, which also attended the AI Day event, said 2026 business is hurt by 13 of its top clients undergoing consolidation. The IT firm, it said,remained confident of achieving the 2.7 per cent CQGR required over the next two quarters to reach 6–7 per cent constant currency (CC) YoY top-line growth in 2026.