Hexaware Surges as Motilal Oswal Boosts Outlook; AI Strategy and 'Zero License' Models Drive 35% Upside Target

Hexaware Surges as Motilal Oswal Boosts Outlook; AI Strategy and 'Zero License' Models Drive 35% Upside Target​

Hexaware Technologies shares rallied nearly 5% to ₹559.25 on Monday, reacting strongly to a positive rating reiterated by Motilal Oswal. The brokerage firm maintained its ‘Buy’ recommendation on the stock, setting an ambitious target price of ₹720. This target implies substantial upside for investors, representing around 35% from current levels.

The momentum follows Hexaware's recent Investor Day presentation. During this event, the IT services company detailed its extensive artificial intelligence strategy, which is centered on two core themes: ‘Zero Friction Enterprise’ and ‘AI for Business’.

AI-Led Differentiation: 'Zero License' and Tokenomics​

Motilal Oswal noted that while more than 50% of Hexaware’s revenue is already infused with AI elements, the brokerage is keenly focused on the company's capacity to create deeper differentiation within its AI business. Two standout areas highlighted by the analysis are ‘Zero License’ strategy and tokenomics experimentation.

The 'Zero License' initiative is designed to replace clients' conventional SaaS expenditure. This replacement will be achieved through proprietary AI-native capabilities held by Hexaware itself. Furthermore, the company has begun experimenting with eight commercial models tied to AI token costs, including gain-sharing and fixed-cost structures.

Every new proposal from Hexaware now includes a token-based pricing option. This signals the company’s aggressive efforts to establish sophisticated new monetization models specifically built around its burgeoning AI capabilities.

Financial Outlook and Growth Guidance Reassurance​

Despite having recently lowered its guidance for CY26 revenue growth, Motilal Oswal maintains that this weakness is related to timing rather than a genuine loss of growth opportunity. The brokerage firm expects several factors to ensure a strong recovery and foundation building for the subsequent year.

These expected elements include continued momentum in modernization programs, healthy demand from critical sectors like banking, healthcare, and manufacturing, and delayed deal ramp-ups. These components are viewed as crucial for achieving an improved exit in CY26.

Motilal Oswal estimates constant-currency revenue growth at 6.4% for CY26. They project a stronger figure of 9.7% for CY27. This projected growth is attributed to the company's expanding AI opportunities, improving execution capability, and successful large account mining. The firm has also noted that Hexaware maintained its margin guidance despite continuous investment in talent and AI technology.

Technical Indicators Signal Broadly Positive Trend​

From a technical standpoint, Hexaware Technologies exhibits indicators pointing toward a generally positive trend. The stock is currently trading above 7 out of the 8 key simple moving averages (SMAs). This upward trend aligns with the bullish view provided by analysts.

The 14-day RSI stands at 40.6. While this value remains below the neutral mark of 50, it remains comfortably above the oversold zone of 30. This technical observation suggests that the stock is not currently in a technically depressed or oversold territory.