Hexaware Technologies Q2 CY25 – Key Highlights

- Revenue & Growth: Q2 revenue grew 8.6% YoY, slightly below expectations due to customer decision delays. Five of six verticals posted YoY growth. Financial Services grew 16% YoY; banking rebounded 13.5% QoQ. Manufacturing & Consumer declined 11.5% YoY due to macro headwinds. Asia Pacific expected to accelerate with SMC acquisition. Full-year growth guidance revised down, but $3bn revenue ambition for CY29 intact.

- Profitability & Margins: EBITDA margin at 17.2%, within guided 17.1%-17.4%. One-offs resulted in modest ~15bps margin impact including earnout reversal, impairment, restructuring costs, and provisions. Utilization improved to 83.7%, offshore revenue increased by 110bps QoQ. Attrition remains low. ERP transformation costs taper but continue into H2.

- Strategic Acquisition – SMC Squared: Provides entry into the growing GCC (Global Capability Center) setup market in India (~1,700 GCCs), with expansion opportunities in Europe and LATAM. SMC revenue $22 million last year; acquisition EPS accretive day one. SMC complements Hexaware’s AI and transformation capabilities.

- AI & Software Engineering: Launched AI-based software engineering offerings. Legacy system modernization (RapidX) and cloud transformation (Amaze) winning major deals with airlines, healthcare, and banking clients. Salesforce Agentforce sales execution gaining traction.

- Geographic Expansion: Robust Middle East pipeline; new customer experience center opened in Chicago. Expansion plans continue in India and globally.

- Client and Deal Wins: Added one new $50M+ client, maintaining broad-based growth. Key wins include AI-driven product development, cloud migration, and Salesforce implementations.

- Market & Industry: Current slowdown is cyclical and macro-driven, not structural or AI-related. Vendor consolidation ongoing, causing deal delays. GCC growth viewed as an opportunity.

- Guidance & Outlook: Growth expectations for CY25 revised downward due to macro issues; Q3 expected to improve QoQ. Margin guidance remains steady. Wage hikes implemented in July at moderated levels. Hiring at upper guided range continues.

- Management Tone: Confident in long-term growth and strategy execution despite short-term headwinds. ERP benefits expected by year-end. No further provisions expected on impaired European client.

Morning Alert..

IT companies' valuation hits 5-year low amid selloff by investors
Top information-technology (IT) services companies continue to lose ground on the bourses as investors turn away from them owing to an earnings slowdown and threat from artificial intelligence. The combined market capitalisation of the country’s top five IT firms that are part of the BSE Sensex is down 24 per cent since January and their valuation has slipped to lowest levels in the past five years. The sector is trading at a discount to the BSE Sensex and trailing the price/earning (P/E) multiple for the first time in the past four years. The trailing P/E of the top five IT companies has now declined to 22.3 times from 25.5 times at the end of December last year and a record high of 36 times in December 2021. In comparison, the BSE Sensex is up 2.2 per cent since the end of last year. The index closed at 79,858 on Friday, up from 78,139 at the end of December. Index valuation remained range-bound in the past three years unlike the valuation of IT services companies. The combined market capitalisation of Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, and Tech Mahindra declined to ₹24.86 trillion on Friday from ₹32.67 trillion at the end of December.

Global market action
Dow Jones – Up by 0.19% or 84.09 points
FTSE – Up by 0.37% or 33.98 points
CAC – Down by 0.58% or 44.48 points
DAX – Down by 0.34% or 81.52 points
Gift Nifty – Up by 0.20% or 48.00 points

FII/DII activities
FII – Sold 1202.65Cr worth of shares
DII – Bought 5972.36Cr worth of shares.

Major Indian Indices PE
Nifty 50 – 21.7x
Nifty Bank – 15.2x

Stocks with high delivery percentage
Vedant Fashion Ltd – 92.3%
Can Fin Homes Ltd – 90.4%
United Breweries Ltd – 87.7%
AIA Engineering Ltd – 86.9%
Tata Communications Ltd – 85.8%

Primary market activities
IPOs opening today
Regaal Resources Ltd (Main board) – Issue size 306Cr
Mahendra Realtors & Infra Ltd (NSE SME) – Issue size 49.45Cr

Listing today
Highway Infrastructure Ltd (Main board) – Subscribed 316.64x

Commodities updates
Gold – Rs 100389/10gm, Silver – Rs 113342/kg, Brcrude – Rs 5615/barrel, Copper – Rs 884.50/kg.

Corporate News
ITC Hotels sets 2030 goal of 220 properties, 5,300 keys in 5 years.

IHCL acquires 51% stake in firms operated under Clarks Hotels for ₹204 cr.

Lodha Developers to raise ₹5,000 crore through NCDs for expansion.

EQUITY99 IPO UPDATES

Our recent IPO outlook with Back to Back tremendous performances by IPO's which we covered & discussed with you all :

1. ADITYA INFOTECH (CP Plus) got listed on 5th August with premium of 60%.

2. SRI LOTUS DEVELOPERS got listed with premium of 30%

3. HIGHWAY INFRA LTD :

Highway Infrastructure share price: Shares of Highway Infrastructure made a robust debut at ₹115 per share on the National Stock Exchange (NSE). This reflects a premium of 64.29% over the IPO issue price of ₹70 per unit.

Minutes into the listing, it further climbed 5% to ₹120.75, its upper circuit limit.

On the BSE, it started trading at ₹117 a share, up 67.14%.


This is the power of excellent research specially crafted for Equity99 family.

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Stallion India Fluorochemicals Limited (SIFL)

🚀🚀🚀🚀💥💥💥🚀🚀🚀🚀

Leading Indian company specializing in manufacturing, blending, and distributing refrigerant and industrial gases used in sectors such as air conditioning, refrigeration, fire safety, semiconductors, pharmaceuticals, automotive, and electronics. Founded in 1992 and incorporated in 2002, the company currently operates four state-of-the-art facilities across Maharashtra, Rajasthan, and Haryana, focusing on advanced, energy-efficient refrigerants like Hydrocarbons (HC), Hydrofluorocarbons (HFCs), and Hydrofluoroolefins (HFOs).

Latest updates
Stallion India signed a Memorandum of Understanding (MoU) with the Government of Rajasthan to set up a cutting-edge R-32 refrigerant gas manufacturing plant in Bhilwara. The facility will also manufacture other advanced refrigerants (e.g., R-410A, R-404A, R-407C, R-454B).

Investment: ₹120 crore (INR)

Target: Production to begin in 2026

Jobs: About 30 direct jobs created

Support: Rajasthan State Industrial Development and Investment Corporation (RIICO) will facilitate approvals and infrastructure.

Other Important points
Strong Financial Growth: Consistent rise in revenue and profits. FY24 revenue: ₹233.23 crore; PAT (Profit after tax): ₹14.78 crore. Latest quarter (Q1 FY26) shows >50% revenue growth YoY.

Low Debt: The company is nearly debt-free and has focused on reducing its debt over time, boosting financial stability and reducing risk for investors.

Strategic Expansion: The new plant in Rajasthan will expand domestic manufacturing, reduce India’s dependency on imported refrigerants, and support sustainability goals.

Operational Efficiency: EBITDA and PAT margins have improved, reflecting enhanced operational management.

Diverse Customer Base & Product Range: Stallion services a broad range of industries and tailors solutions across various gas types, helping reduce reliance on any single sector and minimizing business risk.

Experienced Leadership: Led by a management team with decades of experience in the fluorochemicals and specialty gases industry. The company is recognized for innovation and regulatory compliance.

High Entry Barriers for Sector: Specialized technology, infrastructure, and regulatory needs serve as protective barriers against easy new competition, allowing Stallion to maintain its strong position in a growing market.

STALLION - 123 🚀🚀🚀💥💥🚀🚀

> Specializes in advanced refrigerant and industrial gases for air conditioning, pharma, automotive, semiconductors, and electronics, giving business diversification.

> Operates four manufacturing plants across Maharashtra, Rajasthan, and Haryana, leveraging 20+ years of industry experience
.
> Financially robust and nearly debt-free, showing strong year-over-year sales and profit growth.

> Signed an MoU on August 12, 2025, to set up a ₹120 crore R-32 refrigerant plant in Rajasthan, aiming to start production in 2026 and create 30 direct jobs.

> Consistently maintains strong operational efficiency and a competitive return on equity (ROE)—15% in the last year.

> Company is expanding into semiconductor specialty gases as well as refrigerant debulking and blending for multiple fast-growing sectors.

Quarterly Result Update (Q1FY26)🚀💥🚀

Titagarh Rail Systems Ltd

(Consolidated - Jun 2025 vs Jun 2024)

🔸 Revenue down 24.8% to Rs. 679 crore versus Rs. 903 crore.

🔸 Ebitda down 34.3% to Rs. 64 crore versus Rs. 97 crore.

🔸 Net Profit down 54% to Rs. 31 crore versus Rs. 67 crore.

(Consolidated - Jun 2025 vs Mar 2025)

🔸 Revenue down 32.4% to Rs. 679 crore versus Rs. 1,006 crore.

🔸 Ebitda down 31% to Rs. 64 crore versus Rs. 93 crore.

🔸 Net Profit down 52% to Rs. 31 crore versus Rs. 64 crore.

Morning Alert..

High levels of Russian crude imports may not last forever, says govt
The increased levels of Russian crude imports into India may not last forever, and public-sector oil refineries are, therefore, continuing with term contracts with other suppliers and regions for firm and optional volumes to secure the country's refinery requirement in case of any volatile market situation, the government has said. “Prior to the Russia-Ukraine conflict, Russian crude oil was largely exported to Europe and China. The conflict and the resulting sanctions on Russian crude oil have resulted in increased flows of Russian crude into India due to attractive discounts,” the oil ministry told the parliamentary standing committee on petroleum and natural gas. The ministry was commenting on a recommendation by the panel on imports of crude oil from Russia according to the report of the panel tabled in Parliament today. The committee appreciated the government's decision to purchase crude oil from Russia and recommended that it should keep the energy security of the country in mind while taking decisions on the import of crude oil. India imports crude oil from various locations, including West Asia, Africa, North America, and South America. In 2021-22, the top six countries accounted for 80 per cent of the total crude imports, and the shipments from Russia were low. After the Ukraine-Russia conflict began, and economic sanctions were announced by the United Nations, the United Kingdom, the European Union, and the US, with the price cap imposed on Russia, India increased its Russian crude imports.

Global market action

Dow Jones – Up by 0.02% or 6.69 points
FTSE – Up by 0.20% or 18.10 points
CAC – Up by 0.71% or 54.90 points
DAX – Down by 0.24% or 56.56 points
Gift Nifty – Up by 0.53% or 130.00 points

FII/DII activities
FII – Sold 3398.8Cr worth of shares
DII – Bought 3507.93Cr worth of shares.

Major Indian Indices PE
Nifty 50 – 21.6x
Nifty Bank – 15x

Stocks with high delivery percentage
Kansai Nerolac Paints Ltd – 89.7%
Metro brands Ltd – 88%
JK Cement Ltd – 87.5%
United Breweries Ltd – 84.3%
Gujarat State Petronet Ltd – 83.8%

Commodities updates
Gold – Rs 100152/10gm, Silver – Rs 113738/kg, Brcrude – Rs 5550/barrel, Copper – Rs 893/kg.

Corporate News
Hindalco Industries Q1 results: Net profit up 30% at ₹4,004 crore.

Tata Power, Suzlon Energy ink pact for ₹6,000 crore wind power project.

Apollo Hospitals Q1 profit rises 42%, plans Rs 7,600 cr bed expansion.

🚀🚀 STALLION INDIA 🚀🚀

This chemical company has shown fantastic performance & growth, discussed yesterday as special chemical stock with High Conviction at 122 - 123 levels.

Today with market positive opening the stock has reached at fresh high levels of 134 🏌‍♂🏌‍♂🏌‍♂

More strength and performance today be seen.🚀

Stallion India 🇮🇳

Making new highs, now at 136 🚀

Ready To Hit Upper circuit 🚀🚀

🚦Alert Message, kindly read it carefully🚦

Dear Equity99 Members,
Stay Alert for fraudulent activities going on social media & Telegram as well.
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Morning Alert..
*Brics diplomacy gathers pace as Jaishankar, Wang Yi plan key visits*
Amid a flurry of engagement between the Brics’ founding members following US President Donald Trump’s latest round of tariffs, External Affairs Minister S Jaishankar will meet his Russian counterpart Sergey Lavrov in Moscow on August 21. Chinese Foreign Minister Wang Yi is also expected in India next week for talks on the boundary dispute with National Security Adviser Ajit Doval, under the special representatives’ mechanism between the neighbours. India has yet to officially confirm either visit. However, on Wednesday afternoon the Russian foreign ministry announced the Jaishankar–Lavrov meeting, saying it would cover bilateral relations and “aspects of cooperation within international frameworks”. The two are also expected to finalise dates for Russian President Vladimir Putin’s visit to India later this year. Government sources in New Delhi said Wang’s trip, possibly as early as August 18, had been in the works. Alongside efforts to advance de-escalation between the two militaries, the meeting could pave the way for a bilateral between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin from August 31 to September 1. It would be Modi’s first visit to China in seven years. Wang and Doval are the designated special representatives for boundary talks. Doval visited China in December last year for discussions with Wang, following a thaw agreed by Modi and Xi in Kazan on October 24, 2024.

* Global market action*
Dow Jones – Up by 0.07% or 29.20 points
FTSE – Up by 0.19% or 17.42 points
CAC – Up by 0.66% or 51.55 points
DAX – Up by 0.66% or 160.81 points
Gift Nifty – Up by 0.02% or 5.00 points

*FII/DII activities*
FII – Sold 3644.43Cr worth of shares
DII – Bought 5623.79Cr worth of shares.

*Major Indian Indices PE*
Nifty 50 – 21.7x
Nifty Bank – 15x

*Stocks with high delivery percentage*
Westlife Foodworld Ltd – 93.4%
Grindwell Norton Ltd – 90.9%
Metro Brands Ltd – 89.7%
Medplus Health Services Ltd – 89.3%
Aavas Financiers Ltd – 87.8%

*Primary market activities*
Listing today
All Time Plastics Ltd (Main board) – Subscribed 8.62x
Connplex Cinemas Ltd (NSE SME) – Subscribed 35.67x
JSW Cement Ltd (Main board) – Subscribed 8.22x
Sawaliya Foods Products Ltd (NSE SME) – Subscribed 13.22x

*Commodities updates*
Gold – Rs 100151/10gm, Silver – Rs 115026/kg, Brcrude – Rs 5473/barrel, Copper – Rs 887.25/kg.

*Corporate News*
Brigade Group Q1 profit surges 95% to ₹158 cr on strong residential sales.

Infosys sets up JV with Telstra; to acquire 75% stake in Versent Group.

Kalpataru posts Rs 49 crore loss in Q1 FY26 despite strong pre-sales.