Hexaware Technologies Ltd makes a corporate announcement

Using your supplied Rs 9.50 per-share second interim dividend and assuming 61 Crore eligible shares, the estimated gross cash outflow is:

Rs 579.50 Crores = Rs 9.50 × 61 Crore shares

The 61 Crore share count is derived from Q1 FY27 equity share capital of Rs 61.00 Crores and a Rs 1 face value per share ^{[1] [2]}.

Impact on net cash

The latest quarterly financial statements report consolidated cash and cash equivalents of Rs 1,640.8 Crores as of June 30, 2026 ^[3]. HEXT reported zero total debt for Q1 FY27 ^[4], so its net cash was also approximately Rs 1,640.8 Crores.

The dividend would therefore reduce net cash by Rs 579.5 Crores, or approximately 35.32% of the latest reported cash balance. HEXT would remain in a net-cash position, assuming no intervening operating, investing, financing or exchange-rate movements.

The cited filing confirms a separate Rs 8.50 interim dividend paid on May 15, 2026, but the Rs 9.50 second interim dividend itself could not be confirmed in the cited filings ^[2]. The calculation above therefore treats Rs 9.50 as the supplied assumption and represents a gross dividend outflow before any withholding or payment-timing effects.

Hexaware’s FY26-to-date dividend payout is known, but its same-period FCF payout ratio cannot yet be calculated. The company has declared two FY2026 interim dividends of Rs 8.50 and Rs 9.50 per share, implying cumulative declared dividends of Rs 18.00 per share; the second payment was scheduled for 7 November 2026. ^{[5] [6]} FY26-to-date operating cash flow and capex, required to calculate FCF, could not be confirmed from the cited results. A company-wide rupee payout therefore cannot be established from the per-share disclosures alone.

For comparability, peer FCF is defined here as operating cash flow less reported capex. The peer figures are full-year FY26 measures, whereas Hexaware’s dividend figure is FY26-to-date; the comparison is therefore directional.

Capital-allocation read-through

• Hexaware: The two interim dividends indicate an active shareholder-return cadence. Its prior CY25 dividend was Rs 11.50 per share, equal to 51% of consolidated PAT, providing evidence of an established distribution orientation. ^[22] However, without FY26-to-date FCF, it is not possible to determine whether the Rs 18.00 per-share payout is fully covered by internally generated cash or partly supported by accumulated cash.
• MphasiS: The proposed dividend exceeds reported FY26 FCF, making its distribution policy more shareholder-return-heavy on this measure. Management has also cautioned that dividend timing and M&A-related payouts should be assessed separately from operating cash flow, indicating a parallel acquisition-led capital-allocation agenda. ^[23]
• Tata Elxsi: The proposed payout represents roughly three-quarters of FY26 FCF. That is a meaningful cash return while still leaving some internally generated cash for reinvestment, although the cited disclosures do not provide a broader quantified capital-allocation framework.
• KPIT: KPIT is the clearest balanced model in this peer set: its stated policy explicitly prioritizes liquidity, investment returns and dividends while maintaining a net-cash position. ^[24] Its approximately 20% FY26 FCF payout also leaves substantially more cash for acquisitions and capability investments, including the planned Cymotive transaction. ^[25]
• Fractal: Fractal is at the opposite end of the spectrum. The Board explicitly chose to retain profits for future growth and recommended no FY26 dividend. ^[19] Its zero payout is consistent with a reinvestment-led strategy rather than a shareholder-distribution-led model.
• IDream Film Infrastructure: This is not a like-for-like mid-cap IT-services peer: its FY26 disclosures describe a pivot toward biometric security and increased borrowing authority, while operating cash flow was negative. ^{[26] [21]}

Implication: Hexaware’s current disclosures place it closer to the active-distribution end of the peer spectrum, but the critical question—whether the payout is covered by FY26-to-date FCF—remains unresolved. On reported full-year peer data, MphasiS is the most aggressive distributor relative to FCF, Tata Elxsi is substantial but below full FCF coverage, KPIT emphasizes reinvestment and balance-sheet flexibility, and Fractal prioritizes growth investment over dividends.

The record date is October 26, 2026. The second interim dividend of Rs 9.50 per equity share was declared by the board through a circular resolution dated October 20, 2026, and the payout is scheduled for November 7, 2026 ^[6].

In timeline terms:

• October 20, 2026: Board declares the second interim dividend.
• October 26, 2026: Record date for determining eligible shareholders.
• November 7, 2026: Dividend payment date ^[6].