Hinduja Global

For Q4 FY26, Hinduja Global Solutions reported revenues of ₹1,085 crores and a total income of ₹1,255 crores. The company achieved an EBITDA of ₹197 crores, resulting in an EBITDA margin of 15.7%. For the full fiscal year FY2026, revenue from operations stood at ₹4,307 crores, with a total income of ₹4,857 crores. The full-year EBITDA was ₹649 crores, translating to an EBITDA margin of 13.4%, which represents an improvement of approximately 200 basis points. Despite modest reported revenue growth due to client ramp-downs, the underlying core business remains healthy and growing.

FY2026 was a year of disciplined transformation, focusing on strengthening fundamentals and positioning for future growth. HGS is strategically evolving from a traditional CX service provider to an intelligent experience partner, emphasizing outcome-led solutions. The company's 'Realized AI' methodology is central to this, with its AgentX™ platform now having 23 active customers and 21 AI assistants in production. This approach is driving new contract wins, particularly in the UK public sector, where AI-led solutions have reduced process times from over 4 hours to approximately 30 minutes, demonstrating tangible efficiency gains.

Hinduja Global Solutions achieved its strongest year ever in new client acquisitions during FY2026, securing 79 new clients across its BPM and Digital services. This significant increase in client base is expected to provide a broader foundation for revenue growth in FY2027 and beyond. The company also reported improved pipeline momentum, with deals being more outcome-led, integrated, and aligned to transformation initiatives. New packaged solutions such as AMLens for anti-money laundering, LoanFlow for loan management, and KYCVision are emerging as key growth engines.

The Media & Communication division underwent a portfolio rebalancing in FY2026 to address headwinds in the linear television business. The company is focusing on its broadband business, including retail broadband and CelerityX (enterprise services), as key growth drivers. CelerityX, for instance, saw its enterprise revenue double and Total Contract Value (TCV) increase fivefold this year. A major highlight was the signing of an MoU with the Uttar Pradesh government for 'Project Ganga,' a digital inclusion initiative aimed at connecting 2 million households with high-speed broadband and empowering 10,000 entrepreneurs over the next 2-3 years, with project capex funded by the CM Yuva Scheme.

The company's upselling and packaging strategy in the broadband segment is yielding positive results. The proportion of users on high-speed plans (>100 Mbps) increased from 10.7% a year ago to 15% in FY26. Conversely, entry-level plans (<50 Mbps) decreased from 54% to 46%, indicating a successful shift towards higher-tier plans. In the Digital TV (DTV) business, churn was maintained at a low 0.62% in Q4, significantly below the industry average of 2-3% per month. Furthermore, cost optimization efforts, including negotiations with telcos, reduced bandwidth cost as a percentage of revenue in the retail segment from 28% to 26%.

Hinduja Global Solutions maintains a robust financial position, evidenced by a net treasury and cash surplus of approximately ₹5,346 crores. This strong liquidity provides ample flexibility for funding organic growth and strategic investments in AI and broadband initiatives without compromising returns. Despite reporting a negative EPS of -34.52 for FY2026 on a standalone basis, the board recommended a final dividend of ₹5 per equity share. This decision reflects management's confidence in the company's improved performance, future outlook, and commitment to sharing value with shareholders.