Hinduja Global FY26 Results (NSE: HGS)
Signal: Revenue declined
The read
FY26 annual results show continued revenue contraction (-2.2%) and EBITDA erosion (-20.1%) at the consolidated level, with PAT dropping 73.5%. The BPO core appears under pressure, while the media/cable subsidiaries prop up group profitability. Standalone operations reported a deeper loss of ₹161 Cr (though improved from prior year), underscoring the reliance on subsidiaries. The GAAR tax litigation adds contingent liability of ₹282 Cr, though stayed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,307.36 Cr | -2.2% | N/A |
| EBIT | ₹143.79 Cr | -50.2% | |
| Net profit | ₹32.19 Cr | -73.5% | |
| EPS | ₹6.92 | -73.5% | |
| EBIT margin | 15.1% |
P&L walk
Consolidated revenue declined 2.2% YoY, with EBITDA falling 20.1% (margin 15.1%). PAT dropped 73.5% to ₹32 Cr, impacted by lower operating profit and potentially higher tax/other costs. Other income of ₹550 Cr contributed significantly to total income, but EBIT of ₹144 Cr suggests thin operating profit after D&A.
Segments
Consolidated profit of ₹32 Cr versus standalone loss of ₹161 Cr indicates material profit contribution (~₹192 Cr) from subsidiaries, primarily the media/cable division (IndusInd Media, OneOTT etc.), masking the BPO core's weakness.
Key concerns
- Revenue declined 2.2% YoY
- EBITDA down 20.1%, margin likely compressed
- Standalone PAT loss of ₹161 Cr
- GAAR tax contingency of ₹281.59 crore under litigation
Research and educational content only. Not investment advice.