HGS - Hinduja Global
📢 Recent Corporate Announcements
Hinduja Global Solutions' broadband subsidiary, OneOTT Intertainment Ltd (OIL), has signed an MoU with the Uttar Pradesh State Transformation Commission for 'Project GANGA'. The initiative aims to provide high-speed broadband to 2 million households over the next 2-3 years by empowering 8,000-10,000 local entrepreneurs as Digital Service Providers. This large-scale digital inclusion project is expected to generate over 100,000 jobs and significantly expand HGS's footprint in India's most populous state. The move leverages HGS's existing infrastructure of 2 lakh kilometers of fiber to drive growth in Tier-II and Tier-III markets.
- MoU signed to connect 2 million households in Uttar Pradesh within the next 2-3 years.
- Aims to develop 8,000 to 10,000 local entrepreneurs as independent Digital Service Providers (DSPs).
- Projected to generate over 100,000 direct and indirect jobs across the state.
- Leverages HGS's national footprint of 5 million connected homes and 2 lakh kilometers of fiber infrastructure.
- Focuses on delivering broadband, IPTV, OTT, and cybersecurity solutions to rural and underserved areas.
Hinduja Global Solutions (HGS) reported a total income of ₹1,192.2 crore for Q3 FY2026, with an EBITDA margin of 11.2%. While revenue growth was muted due to volume ramp-downs in large accounts and a subdued macro environment, the company signed 21 new logos in Digital Operations and Tech Services. Management is prioritizing margin expansion over top-line growth, leveraging its AI-led 'Agent X' platform and specialized solutions like AMLens. The Digital Media business is seeing positive traction in the enterprise broadband segment under CelerityX.
- Q3 FY2026 total income reached ₹1,192.2 crores with an operating revenue of ₹1,075.4 crores.
- EBITDA for the quarter stood at ₹133.7 crores, representing an 11.2% margin.
- Added 21 new logos in Digital Operations and Technology Services, marking a strong quarter for new signings.
- AMLens solution demonstrated a 75% reduction in case analysis time and 60% fewer false positives.
- 9M FY2026 total income stood at ₹3,602.4 crores with a cumulative EBITDA margin of 12.5%.
Hinduja Global Solutions Limited (HGS) has officially released the audio recording of its Q3 FY 2025-26 earnings conference call held on February 13, 2026. This disclosure follows the company's quarterly financial results announcement and provides investors with access to management's detailed commentary. The recording is available on the company's website and via a direct link provided to the exchanges. A written transcript of the call is expected to be published in the coming days as per SEBI regulations.
- Audio recording of the Q3 FY 2025-26 earnings call is now available for public review.
- The conference call was conducted as a group meet on February 13, 2026.
- The disclosure is made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
- Management discussed the company's performance for the third quarter ending December 2025.
- A formal written transcript will be released by the company in due course.
HGS reported a total income of ₹1,192.2 crore for Q3 FY2026, with operating revenue growing marginally by 1.1% YoY to ₹1,075.4 crore. The company faced operational headwinds, resulting in a loss of ₹56.2 crore from continuing operations, though total PAT remained positive at ₹34.4 crore due to discontinued operations. Management highlighted a strong sales pipeline with 21 new logo wins and a significant net treasury surplus of ₹5,227 crore. The media segment showed positive trends in broadband ARPU and enterprise client acquisition.
- Q3 FY2026 operating revenue reached ₹1,075.4 crore, up 1.1% YoY, despite subdued macro-economic conditions.
- Reported a loss of ₹56.2 crore from continuing operations, impacted by volume ramp-downs in large accounts.
- Strong business development with 21 new logos added in Digital Ops and Tech Services during the quarter.
- Maintains a healthy balance sheet with a net treasury and cash surplus of ₹5,227 crore.
- Media business (NXTDIGITAL) added 5 new enterprise logos and saw broadband users migrating to higher-speed plans.
Hinduja Global Solutions (HGS) reported its Q3 FY2025-26 results, highlighting performance from its Philippines branch which contributed ₹79.88 crore to revenue and ₹8.26 crore to net profit for the quarter. A critical highlight is a ₹281.59 crore tax demand related to GAAR proceedings, which the company is currently contesting via a writ petition. While the auditors have issued an unmodified opinion, they included an 'Emphasis of Matter' regarding this significant contingent liability. No financial adjustments have been made in the current results as the management relies on legal advice to contest the demand.
- Philippines branch reported Q3 revenue of ₹79.88 crore and net profit of ₹8.26 crore.
- Nine-month (9M) revenue for the Philippines branch reached ₹226.88 crore with a net profit of ₹8.31 crore.
- Company is facing a ₹281.59 crore tax demand after a GAAR panel disregarded brought forward losses of a demerged entity.
- Management has not made any accounting provisions for the tax demand, opting to challenge it through a writ petition.
- Auditors provided an 'Unmodified Review Report' but flagged the tax litigation under 'Emphasis of Matter'.
Hinduja Global Solutions (HGS) has approved its financial results for the quarter ended December 31, 2025. A key highlight is a significant tax demand of Rs 281.59 crore related to GAAR proceedings, which the company is currently contesting through a writ petition. For the quarter, the Philippines branch reported a revenue of Rs 79.88 crore and a net profit of Rs 8.26 crore. The auditors have issued an unmodified opinion but included an 'Emphasis of Matter' regarding the ongoing tax litigation.
- Board approved unaudited standalone and consolidated results for Q3 and 9M ended Dec 31, 2025
- Company is facing a tax demand of Rs 281.59 crore due to GAAR panel directives on demerged entity losses
- Philippines branch contributed Rs 79.88 crore in revenue and Rs 8.26 crore in PAT for the quarter
- Statutory auditors Haribhakti & Co. LLP provided an unmodified review report with an Emphasis of Matter
- Nine-month revenue for the Philippines branch reached Rs 226.88 crore with a PAT of Rs 8.31 crore
Hinduja Global Solutions (HGS) has approved its unaudited financial results for the quarter and nine months ended December 31, 2025. A critical point for investors is an ongoing GAAR-related income tax dispute involving a demand of ₹281.59 crore, which the company is contesting via a writ petition. The Philippines branch showed steady performance with Q3 revenue of ₹79.88 crore and a net profit of ₹8.26 crore. While the auditors provided an unmodified report, they highlighted the tax dispute as an 'Emphasis of Matter'.
- Board approved Q3 and 9M FY2026 standalone and consolidated financial results.
- Ongoing GAAR-related tax demand of ₹281.59 crore regarding brought forward losses of a demerged entity.
- Philippines branch contributed ₹79.88 crore to revenue and ₹8.26 crore to net profit in Q3.
- Statutory auditors Haribhakti & Co. LLP issued an unmodified review report with an Emphasis of Matter on tax litigation.
- Consolidated results include major subsidiaries like IndusInd Media Communications and OneOTT Entertainment.
Hinduja Global Solutions (HGS) has scheduled its earnings conference call to discuss financial results for the quarter and nine months ended December 31, 2025. The call is slated for February 13, 2026, at 5:00 PM IST. Top management, including the Global CEO and CFO, will be present to provide operational updates and financial insights. This is a standard regulatory procedure following the conclusion of the third quarter of the fiscal year.
- Earnings call scheduled for February 13, 2026, at 17:00 hrs IST
- Covers financial performance for Q3 and 9M FY2026 ending December 31, 2025
- Management participants include Global CEO Venkatesh Korla and Global CFO Mahesh Kumar Nutalapati
- Includes specific updates on the Media Business segment by Director Vynsley Fernandes
Hinduja Global Solutions (HGS) has launched AMLens, an AI-powered solution designed to automate and accelerate Anti-Money Laundering (AML) investigations for financial institutions. The tool significantly improves operational efficiency, reducing case analysis time by 75% and cutting false positive rates from 18% to 7%. By increasing investigator productivity from 8 to 24 cases per day, HGS is strengthening its high-value service offerings in the global RegTech and BPM markets. This move aligns with the company's strategy to integrate explainable AI and machine learning into its core business processes.
- Launched AMLens, an AI-powered solution reducing case analysis time from 2 hours to 30 minutes (75% reduction).
- Achieved a 60% decrease in false positive rates, dropping from approximately 18% to 7%.
- Increased investigator productivity 3x, from 8 cases per day to 24 cases per day.
- Reduced overall turnaround time by 75%, moving from 48 hours to 12 hours.
- Targeting high-growth segments including Retail Banking, Fintech, Payments, and Wealth Management.
Hinduja Global Solutions Limited (HGS) has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited, confirms that the company has processed all dematerialization requests for the quarter ended December 31, 2025. It verifies that share certificates were mutilated, cancelled, and the depository's name was updated in the records within the mandatory 15-day period. This is a standard administrative filing ensuring the integrity of the company's share registry.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Confirmation provided by Registrar and Transfer Agent, KFin Technologies Limited.
- Dematerialization requests were processed and confirmed within 15 days of receipt.
- Share certificates were mutilated and cancelled after substituting the depository as the registered owner.
- The shares comprised in the certificates are listed on the relevant Stock Exchanges.
Hinduja Global Solutions Limited (HGS) has informed the exchanges that its trading window will be closed starting January 1, 2026. This closure is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations for the quarter ending December 31, 2025. The window applies to all designated persons and their immediate relatives and will remain closed until 48 hours after the financial results are declared. The specific date for the board meeting to approve these results will be announced separately.
- Trading window closure begins on January 1, 2026, for the quarter ending December 31, 2025
- Applies to all designated persons and their immediate relatives as per SEBI regulations
- Window to reopen 48 hours after the declaration of un-audited standalone and consolidated results
- Board meeting date for result declaration to be intimated in due course
Shareholders of Hinduja Global Solutions (HGS) have approved a special resolution for the re-appointment and remuneration of Mr. Vynsley Fernandes as a Whole-time Director. The resolution passed with a significant majority of 98.95% of the total votes polled. However, there was notable dissent from public institutional investors, with 99.51% of their votes cast against the resolution. The promoter group provided full support, ensuring the resolution's passage with 100% of their 24.6 million votes in favor.
- Special resolution for re-appointment of Mr. Vynsley Fernandes passed with 98.95% total votes in favor.
- Total voter turnout was 53.96%, representing 25,103,092 votes out of 46,520,285 total shares.
- Promoter group cast 24,638,356 votes, all of which were 100% in favor of the resolution.
- Public institutional investors showed high dissent, with 253,314 votes (99.51% of their polled votes) against the proposal.
- The resolution is deemed to have been passed on the last date of e-voting, December 26, 2025.
Hinduja Global Solutions (HGS) has secured an interim stay from the Bombay High Court against a direction from the GAAR (General Anti-Avoidance Rules) Panel. The tax authorities had characterized the demerger of NXTDigital's business into HGS as an 'impermissible avoidance arrangement' for assessment years 2022-23 and 2023-24. The court has admitted the company's writ petition and stayed the implementation of the GAAR direction, providing immediate relief. The matter is scheduled for further hearing in January 2026, and the company currently reports no adverse financial impact.
- Bombay High Court granted an interim stay on the GAAR Panel's direction for AY 2022-23 and AY 2023-24.
- The dispute involves the tax treatment of the demerger of NXTDigital's Digital, Media, and Communication business into HGS.
- HGS argues the demerger was approved by NCLT and was not originally challenged by the Income Tax department.
- The High Court has admitted the company's writ petition and set the next hearing for January 2026.
- Company confirms there is currently no adverse financial impact on its operations or balance sheet.
Financial Performance
Revenue Growth by Segment
The BPM segment (70% of revenue) saw a 14% YoY decline in 9M FY2025 due to subdued US/UK demand. Conversely, the Digital Media business grew 15% YoY in the same period, driven by improved ARPU despite a falling subscriber count. Q2 FY2026 consolidated revenue stood at INR 1,091.0 Cr, a marginal 0.4% YoY increase.
Geographic Revenue Split
By origination, India contributes 39%, USA 29%, UK 11%, Canada 9%, and Australia 6%. By delivery location, India leads with 43%, followed by USA at 19%, Philippines at 13%, Canada at 9%, and UK at 8%.
Profitability Margins
Reported EBITDA margin for Q2 FY2026 was 2.4% (INR 26.1 Cr), down from 3.2% in Q2 FY2025. PAT from continuing operations for H1 FY2026 was a loss of INR 73.3 Cr, though this narrowed from a loss of INR 107.5 Cr in H1 FY2025, reflecting a 31.8% improvement in loss reduction.
EBITDA Margin
Total EBITDA margin (including other income) was 12.9% in Q2 FY2026 (INR 158.0 Cr). Core BPM operating margins moderated significantly to 1.5% in 9M FY2025 from historical levels of 6-7% due to the transition from onshore to offshore models and lower utilization.
Capital Expenditure
Annual combined capex for media and BPM businesses is projected at INR 100-140 Cr per fiscal year, funded primarily through cash accruals and interest income to limit reliance on fresh debt.
Credit Rating & Borrowing
CRISIL downgraded the rating to 'CRISIL A/Stable' from 'CRISIL A+' in early 2025. Interest expenses for Q2 FY2026 were INR 53.8 Cr, a 13.8% decrease from INR 62.4 Cr in Q2 FY2025, supported by a total debt of INR 1,254 Cr against a net worth of INR 8,098.5 Cr.
Operational Drivers
Raw Materials
Human Capital/Employee Costs (approx. 60-70% of BPM costs), Media Content/Bandwidth Costs (primary for Digital Media), and Technology Infrastructure.
Import Sources
Talent is primarily sourced from India (43% delivery), Philippines (13%), and North America. Media technology and hardware are sourced globally.
Key Suppliers
Not specifically named, but includes global technology vendors, bandwidth providers, and media content broadcasters for the NXTDIGITAL business.
Capacity Expansion
BPM capacity is measured by seat utilization; Media growth is focused on expanding the broadband subscriber base to offset digital TV headwinds. Capex of INR 100-140 Cr supports this infrastructure.
Raw Material Costs
Employee costs are the largest component; rising wages and talent retention costs pose a challenge to maintaining the 5-6% adjusted EBITDA margin target. Procurement focuses on renegotiating with input service providers to optimize costs.
Manufacturing Efficiency
BPM efficiency is driven by seat utilization and the 'BAGO' initiative. Media efficiency is tracked via ARPU improvements, which supported a 15% revenue growth in that segment despite lower volumes.
Logistics & Distribution
Distribution for media services is managed through digital cable and broadband networks; costs are optimized through vendor renegotiations.
Strategic Growth
Expected Growth Rate
5-10%
Growth Strategy
The company is executing a 'Digital-First' strategy, migrating clients to high-margin offshore delivery centers and expanding the broadband business under NXTDIGITAL. Management expects 'pronounced' growth by FY2027 as the reorganized sales team gains traction and the revenue mix shifts toward digital services.
Products & Services
BPM services (back-office processing, contact center, CX operations), Digital Media (Digital TV, Broadband, OTT aggregation via NXTDIGITAL), and IT services (via Teklinks).
Brand Portfolio
HGS (Hinduja Global Solutions), NXTDIGITAL (NDL), Teklinks, Diversify.
New Products/Services
Expansion of 'Digital CX' and 'BAGO' initiatives; expected to contribute to the long-term target of 20%+ EBITDA margins.
Market Expansion
Focus on high-potential segments and selective acquisitions to acquire new capabilities, supported by a treasury surplus of INR 5,321.3 Cr.
Market Share & Ranking
Competes with Tier-1 players like Genpact, WNS, and Firstsource in BPM; and Jio/Airtel in Media.
Strategic Alliances
Consolidation of Teklinks and Diversify; strategic integration of media and BPM businesses to provide end-to-end digital solutions.
External Factors
Industry Trends
The industry is shifting toward offshore delivery and digital-heavy CX. HGS is positioning itself by reducing onshore legacy costs and focusing on broadband growth (15% YoY) to counter the decline in traditional digital TV.
Competitive Landscape
Intense competition in BPM from Genpact and WNS; Media business faces 'incredibly strong headwinds' from major telecom players like Jio and Airtel.
Competitive Moat
Moat is built on long-standing client relationships and a global delivery footprint. Sustainability depends on the successful transition to a digital-first model and maintaining a strong net worth of INR 8,098.5 Cr.
Macro Economic Sensitivity
High sensitivity to US and UK economic conditions; a slowdown in these markets led to a 14% revenue decline in the BPM segment in 9M FY2025.
Consumer Behavior
Shift from traditional digital TV to broadband and OTT services is driving the strategy for the NXTDIGITAL media segment.
Geopolitical Risks
Geopolitical challenges in key global markets were cited as a reason for muted margins in fiscal 2025.
Regulatory & Governance
Industry Regulations
Compliance with global data security standards and labor laws in multiple jurisdictions (India, Philippines, USA, UK) is critical for BPM operations.
Taxation Policy Impact
Tax expenses increased in FY2025 primarily due to additional deferred tax expenses. Effective tax rate impacts the narrowing PAT losses.
Legal Contingencies
The company noted an 'amicable settlement among the Hinduja family promoters' which stabilizes the governance outlook. Specific litigation values in INR were not disclosed.
Risk Analysis
Key Uncertainties
High exposure to group companies with INR 500-600 Cr in loans and INR 3,500 Cr in overseas debt instruments; these are key monitorables for credit analysts.
Geographic Concentration Risk
68% of revenue originates from India and the USA, making the company vulnerable to regulatory or economic shifts in these two regions.
Third Party Dependencies
Dependency on 'input service providers' for the media business and global telecom infrastructure for BPM delivery.
Technology Obsolescence Risk
Risk of digital TV becoming obsolete; mitigated by a 15% growth in the digital media/broadband segment.
Credit & Counterparty Risk
Receivables quality is stable with DSO at 61 days; however, the high investment in group company debt instruments (INR 3,500 Cr) carries counterparty risk.