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    HRH Next Services Limited

    HRHNEXT
    Services·10 Jun 2026
    Management Summary

    HRH Next Services reported a strong FY26, with revenue growing 18% to ₹68 crores and EBITDA increasing 38%, driven by cost consolidation and initial contributions from its AI division, AINA. AINA, which contributed ₹7 crores to FY26 revenue, is a key strategic focus, with management aiming for it to account for 50% of revenue within three years. The company also provided FY27 revenue guidance of ₹75-80 crores (organic) and 10-12% PAT margins, while acknowledging working capital challenges due to delayed payments from large clients.

    Highlights

    5

    • FY26 Revenue grew 18% to ₹68 crores.

    • EBITDA grew 38% in FY26, indicating significant margin expansion.

    • AINA (AI division) contributed ₹7 crores to FY26 revenue, with 2 full productions live and 3 more in pipeline.

    • Strong client retention with average partnership duration of 5-6 years, some up to 15 years.

    • Strategic expansion into Tier 2, 3, and 4 cities, catering to 11 languages.

    Concerns

    2

    • Delayed payments from large enterprises impacting working capital.

    • High capex requirement for new physical centers (₹3-3.5 crores per 300-seat center) and AI development (₹5-6 crores for FY27).

    Key financials

    Single quarter

    03 metrics
    1. 01Revenue₹68 Cr+18%YoY
    2. 02EBITDA Growth38%
    3. 03AINA Revenue Contribution₹7 Cr

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹11 crores

    Debt

    Debt disclosed

    Guidance & targets

    8
    CategoryTargetPriority
    Revenue
    FY27 Revenue (Natural Run Rate)
    ₹75-80 crores
    		Medium
    Revenue
    AINA Revenue Contribution
    at least 50% of total revenue
    		Medium
    Revenue
    FY27 Total Revenue (including inorganic)
    ₹100 crores
    		Medium
    Profitability
    PAT Margin
    10-12%
    		High
    Profitability
    Maximum PAT Margin
    15%
    		Medium
    Capex
    New Centers Capex
    ₹3-3.5 crores per center for two centers
    		High
    Capex
    AI Development Capex
    ₹5-6 crores
    		High
    Strategic
    NSE Main Board Listing
    reach qualification criteria
    		Medium

    NSE Main Board Listing Progress

    Next quarter / 'very, very soon'
    CurrentAwaiting qualification criteria
    TargetMeeting qualification criteria / Application submitted

    Why it matters

    Main board listing is expected to open up new opportunities and larger play in AI, crucial for strategic growth.

    we hope to reach the qualification criteria for the NSE main board very, very soon.

    How to verify

    guidance_and_targets[metric='NSE Main Board Listing']

    Risks & concerns

    2
    RiskSeverity

    Working Capital Stress due to Delayed Payments

    Some challenges with delayed payments from large enterprises, though no bad debts and managed effectively. — Management acknowledged

    medium

    Competitive Intensity in AI Market

    Many new AI players exist, but HRHNEXT has a 'wildcard entry' into large enterprises due to long-standing relationships. — Management acknowledged

    low

    Q&A highlights

    8

    “these are basically towards Al development, sir, some of the advances that we have made, and Gangadhar will give a lot more clarity about the exact nature of the expense, but these are purely because of the Al expenses.”

    Clarifies the nature of significant intangible assets on the balance sheet, linking them to AI development and not just a single product.

    asked by Jaideep RAY

    2 min read5 chapters

    Detailed Narrative

    01

    Strong FY26 Performance Driven by Margin Expansion

    HRH Next Services reported robust financial performance for FY26, with revenue growing 18% to ₹68 crores from ₹58 crores in the previous year. This growth was accompanied by a significant 38% increase in EBITDA, indicating substantial margin expansion. The company attributed this improvement to strategic initiatives like 'Operation Green Cover,' which focused on consolidating major cost heads, manpower, and infrastructure, alongside the initial revenue contribution from its new AI division, AINA.

    02

    AINA: The AI-Powered Growth Engine

    The company's AI division, AINA, launched in 2025, is emerging as a key growth driver, contributing ₹7 crores to FY26 revenue. AINA differentiates itself by focusing on vernacular language support across 11 Indian languages, leveraging a homegrown product developed over two decades. Management highlighted strong client acceptance, with 2 full AI productions already live and 3 more in the pipeline, and aims for AINA to contribute at least 50% of total revenue within three years, signaling a major strategic shift towards AI-led services.

    03

    Strategic Expansion and Client Retention

    HRH Next operates from 8 strategic locations, catering to pan-India customers in 11 languages, with plans for further expansion into Tier 2, 3, and 4 cities. The company boasts high client retention, with average partnerships lasting 5-6 years and some extending up to 15 years with marquee clients like Swiggy and Vodafone. This long-term client engagement underscores the company's strong service quality and market position in customer engagement services.

    04

    Future Growth Outlook and Main Board Ambitions

    For FY27, HRH Next projects a natural revenue run rate of ₹75-80 crores, with an aspiration to reach ₹100 crores including inorganic growth. The company also guided for PAT margins in the 10-12% range, potentially reaching a maximum of 15%. Management expressed confidence in leveraging AI for future growth and aims to meet the qualification criteria for listing on the NSE main board 'very, very soon,' which is expected to unlock further opportunities and M&A potential.

    05

    Capex and Working Capital Management

    The company plans significant capital expenditure for FY27, including investing in two new physical centers, each requiring ₹3-3.5 crores for 300 seats. Additionally, ₹5-6 crores are earmarked for AI development. While acknowledging challenges with delayed payments from large enterprises affecting working capital, management stated that there are no bad debts and the situation is being managed effectively, ensuring healthy books.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.