AI drives over half of Hexaware revenue as IT major bets on enterprise modernisation

CHENNAI: With more than half of its revenues now influenced by artificial intelligence (AI), Hexaware Technologies is doubling down on AI-led enterprise modernisation even as it looks to create new avenues of growth amid pressure on traditional IT services.

The Mumbai-based IT services company reported consolidated net profit of Rs 330 crore for the quarter ended June 30, 2026, compared with Rs 380 crore in the year-ago quarter. Revenue, however, rose to Rs 3,845 crore in June 2026 from Rs 3,261 crore during the same quarter of the previous year.

Hexaware CEO R Srikrishna said the company’s priority at this stage is to invest in newer technology-led opportunities and expand the scope of work it can undertake for clients.

In an interaction with the media on Friday at Hexaware’s Siruseri facility near here, Srikrishna said the power of AI was not about eliminating white-collar work, but about helping enterprises understand how the technology could transform their businesses.

This is the premise behind Zerovity, Hexaware’s AI-led platform built around six “zero friction” pillars covering vulnerabilities, technical debt, backlog, defects, tickets and licences.

Srikrishna said legacy modernisation, particularly among enterprises still dependent on COBOL systems, represents a significant opportunity. While the broader legacy technology opportunity is estimated at around $1 trillion, he said the transition to AI-infused systems could open up a sizeable new market for technology service providers.

He also pointed to the transformation underway in the nearly $900-billion software-as-a-service (SaaS) market, with enterprises increasingly moving towards low-code, no-code and AI-infused models.

“Our aim is to outrun deflationary instances by picking up new lanes of work,” Srikrishna said, adding that Zerovity provides enterprises with a common context of knowledge that can make technology deployment and modernisation more seamless.

Using Tesla as an analogy, he described Zerovity as a “chassis” that can make deployment of different technology solutions easier. Hexaware’s experience with platforms such as Amaze, Rapidx and Tensai has given it confidence to pursue the AI-led model, with more than 700 people currently working on the company’s AI initiatives.

Srikrishna said the company was also redeploying resources as the nature of technology work changes. Rapidx, for instance, has seen its team strength fall from around 120 to five as AI and newer approaches have altered the nature of the work involved.

He expects the shift towards AI to also change the technology licensing model, with tokens increasingly becoming the basis for consumption and payment.

CASE STUDIES

Australian bank — SAS modernisation

• 90% reduction in manual effort

• More than 25,000 scripts converted to open-source technologies

• Python and PySpark replacing licensed SAS infrastructure

UK-regulated specialised B2B transaction bank — legacy modernisation

• Up to 40% improvement in developer productivity

• 50% reduction in production defects

• 60% faster incident resolution

US health IT and clinical research company — data consolidation

• $10 million in cost savings

• AI-led hospital pricing data consolidation

• Team scaled from 200 to 6,000 websites, delivering 30x efficiency

US-based CRO — clinical research automation

• Multi-agent AI platform developed for country-specific ICF customisation

• Projected annual savings of $13.6 million