Hinduja Global Q1 FY27 Results (NSE: HGS)
Signal: Revenue declined
The read
The trajectory has weakened again: consolidated revenue was nearly flat at ₹1050.36 crore, down 0.6% YoY, but EBITDA fell 27.2% to ₹116.31 crore and EBIT turned to a ₹7.24 crore loss; the parent was also loss-making at ₹62.05 crore, while the reported EPS increase to ₹12.51 diverges sharply from PAT and needs clarification.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,050.36 Cr | -0.6% | N/A |
| EBIT | ₹-7.24 Cr | -123.0% | N/A |
| Net profit | ₹-58.19 Cr | -433.8% | N/A |
| EPS | ₹12.51 | 233.6% | N/A |
| EBIT margin | 11.1% |
P&L walk
Consolidated revenue was ₹1050.36 crore, down 0.6% YoY, but EBITDA declined 27.2% to ₹116.31 crore and EBIT fell to a ₹7.24 crore loss; PAT reached a ₹58.19 crore loss despite ₹150.8 crore of other income.
Segments
No consolidated segment table is available in the provided filing text, but standalone EBITDA margin of 4.8% versus consolidated margin of 11.1% shows that subsidiaries contribute materially to group operating earnings.
Key positives
- Consolidated revenue of ₹1050.36 crore declined only 0.6% YoY, indicating relative top-line stability despite the earnings contraction.
- Consolidated EBITDA remained positive at ₹116.31 crore with an 11.1% margin, materially ahead of the standalone EBITDA margin of 4.8%.
- The company has recommended a final dividend of ₹5 per equity share for FY2025-26, subject to shareholder approval.
Key concerns
- Consolidated EBITDA declined 27.2% YoY to ₹116.31 crore while revenue declined only 0.6%, signaling significant deterioration in operating conversion.
- Consolidated EBIT fell to a ₹7.24 crore loss and PAT to a ₹58.19 crore loss despite ₹150.8 crore of other income.
- Standalone revenue fell 3.0% YoY to ₹448.36 crore and standalone EBITDA declined 39.1% to ₹21.47 crore, confirming weakness at the parent level.
- Reported consolidated EPS of ₹12.51 rose 233.6% YoY even as PAT declined 433.8% to a loss, creating a material earnings-per-share reconciliation issue.
Research and educational content only. Not investment advice.