Hinduja Global

Hinduja Global Solutions reported a total income of Rs. 1,192.2 crores and operating revenue of Rs. 1,075.4 crores for Q3 FY26. Operating revenue saw a marginal increase of 1.1% year-on-year but a sequential decline of 1.4%. EBITDA stood at Rs. 133.7 crores, resulting in an EBITDA margin of 11.2%, which was down approximately 170 basis points sequentially and 780 basis points year-on-year. The company recorded a PBT loss of Rs. 41 crores, compared to a profit in previous periods, and a total PAT of Rs. 34.4 crores, including Rs. 90.5 crores from discontinued operations.

HGS is actively undergoing a transformation phase, prioritizing disciplined execution, profitability, and aggressive investment in AI capabilities. The company's HGS Agent X framework, comprising 15 modules and 21 AI assistants, now supports 4.5 million minutes of voice interactions and 3 million minutes of digital interactions. This AI integration has led to significant margin improvements: 15-20% in onshore delivery locations (US, Canada, UK) and approximately 10% in offshore delivery. Solutions like AMLens have demonstrated a 75% reduction in case analysis time and 60% fewer false positives, showcasing tangible benefits.

The Digital Media business, encompassing CelerityX and NXTDIGITAL, continues to be a key growth area. CelerityX secured five new prestigious logos in Q3, and the broadband vertical is expanding rapidly. Under the Mission Bharat initiative, HGS has connected 50 new Tier-3 towns and added approximately 25,000 subscribers in Q3, contributing to its goal of 100 new towns by the next financial year. This expansion is driving a shift in customer mix towards higher-bandwidth plans, with the 101-200 Mbps segment increasing from 6% to 9%.

In Q3, HGS added 21 new logos in Digital Operations and Technology Services, which are expected to support growth in the next fiscal year as they scale. The company is actively diversifying its client base, with public sector exposure expanding into Canada, reducing historical concentration in the UK. This strategic focus on new logos and market expansion is aimed at mitigating client concentration risk, with the top client now accounting for 6.4% of revenue and the top ten for 28.4%.

Management acknowledged a subdued macro backdrop and elongated decision cycles, particularly for larger deals, which contributed to muted revenue growth and sequential margin moderation in Q3. These dynamics, along with volume ramp-downs in some large accounts, are expected to persist in the near term, potentially for another year or so. Despite these challenges, HGS maintains a robust sales pipeline, especially in Digital Operations and Technology Services, and anticipates medium-term margin accretion as its AI investments transition from investment to commercialization.

Hinduja Global Solutions maintains a strong balance sheet with a net worth of Rs. 8,206.5 crores. The company reported a gross treasury balance of Rs. 6,429 crores against a debt of Rs. 1,202 crores, resulting in a healthy net treasury balance of Rs. 5,227 crores. This strong liquidity position, coupled with disciplined capital allocation, enables the company to fund its growth initiatives through internal accruals without significant external financing.