Why Is MOFSL Bullish On Hexaware Technologies Despite Global IT Spending Challenges?

Hexaware Technologies is positioning itself at the center of the next wave of enterprise technology transformation. According to MOFSL, the company's focus on AI-enabled services, cloud-native workflows and innovative commercial models could create meaningful growth opportunities over the next few years. While the global IT services industry faces spending pressures in certain segments, Hexaware is attempting to capture demand from clients seeking cost optimization and AI-driven productivity improvements.

What Is The Zero License Strategy?

One of the most interesting themes highlighted by MOFSL is Hexaware's "Zero License" initiative. Traditionally, enterprises pay recurring Software-as-a-Service (SaaS) subscription fees to software vendors. Under the Zero License approach, organizations can potentially replace recurring software licensing costs with cloud-based workflows that they own and control.

As enterprises continue to search for ways to optimize technology budgets, such solutions could gain traction across multiple industries.

How Is AI Creating New Revenue Opportunities?

Artificial Intelligence remains one of the strongest growth themes for global IT services companies. MOFSL believes that enterprises with strong data foundations will be better positioned to deploy AI at scale. Hexaware's strategy focuses on helping clients build these foundations while simultaneously implementing AI-powered solutions.

Strong data infrastructure is increasingly becoming a prerequisite for successful AI deployment. Companies that can help clients establish these foundations may benefit from long-term digital transformation spending.

What Are Tokenomics And Why Do They Matter?

MOFSL notes that Hexaware is currently testing eight different commercial models linked to AI token costs. As generative AI adoption expands, pricing structures are evolving away from traditional time-and-material billing toward consumption-based models. The ability to design commercially viable AI pricing frameworks may become a competitive differentiator.

The success of these models will depend on balancing client cost savings with sustainable profitability for service providers. This remains one of the most important variables investors should monitor.

Why Is Infrastructure Renewal A Major Opportunity?

According to MOFSL, approximately $342 billion worth of enterprise infrastructure renewal opportunities are expected across the industry. Many organizations continue to operate on legacy systems that require modernization to support cloud computing, cybersecurity requirements and AI deployment.

Companies with proven cloud transformation capabilities may benefit significantly as enterprises refresh aging technology infrastructure.

What Growth Does MOFSL Expect?

MOFSL expects Hexaware's constant-currency revenue growth to remain healthy over the next two calendar years. The brokerage estimates revenue growth of approximately 6.4% year-on-year in CY26 and 9.7% year-on-year in CY27. Continued deal wins and successful conversion of order pipelines into revenue will be critical to achieving these targets.

Investor Takeaway

MOFSL's BUY rating and ₹720 target price reflect confidence that Hexaware can participate meaningfully in the next phase of enterprise technology spending. While execution risks remain, the combination of AI transformation, infrastructure renewal demand and innovative pricing models provides multiple long-term growth drivers.

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