Indian IT services firm Hexaware falls as CEO exit clouds growth recovery (updated)

ExlService Holdings

03/09/2026 05:08

Adds comments from brokerages
Sept 3 (Reuters) - Shares of Hexaware HEXW.NS fell as much as 3.7% on Thursday   after the company said CEO Srikrishna Ramakarthikeyan had resigned to pursue personal interests, prompting investors to weigh the impact on the company's growth outlook.
The Indian IT services firm named Vivek Jetley, a senior executive at Nasdaq-listed EXL EXLS.O, as its new CEO effective October 28.
The stock was trading 2.8% lower at 528.7 rupees as of 9:36 a.m.
Analysts at Kotak raised concerns about a leadership change midway through the company's growth recovery, saying it could increase execution risk and likely prolong the recovery.
"A CEO exit at a services firm rarely stays contained to the top person; business heads and a few title holders typically follow," Kotak said.
Ramakarthikeyan's resignation comes as Indian IT services firms grapple with AI-related disruption and macroeconomic uncertainty, both of which have prompted clients to reassess technology spending.
Hexaware, India's 10th-largest IT firm by revenue, cut its calendar-year 2026 annual revenue growth forecast to a range of 6% to 7% from a prior view of at least 7.6% after its June quarter results.
Analysts at HSBC said the incoming CEO's key mandate would be to revive growth, a concern for investors after the company's recent underperformance. The brokerage said Jetley brings experience in scaling new growth engines, citing his leadership roles at EXL, where he headed the insurance, healthcare and life sciences businesses.
JPMorgan analysts echoed the view, adding that a new CEO could bring fresh energy to the company. However, the brokerage also said Jetley's experience may not translate seamlessly to Hexaware's broader IT services portfolio.

     
($1 = 94.40 Indian rupees)
     

 (Reporting by Mridula Kumar in Bengaluru; Editing by Ronojoy Mazumdar)
 ((mridula.kumar@thomsonreuters.com))