Hinduja Global Solutions Limited has filed its Business Responsibility and Sustainability Report (BRSR) for FY26 with the Bombay Stock Exchange and the National Stock Exchange of India. The filing, dated September 1, 2026, outlines the company’s performance against the National Guidelines on Responsible Business Conduct (NGRBC) principles. It covers governance structures, employee welfare metrics, and environmental data for the period ending March 31, 2026.

The report is based on standalone figures. Hinduja Global Solutions operates primarily through two business segments: Business Process Management Services (BPM) and Digital Media. BPM accounts for 59.43% of turnover, while Digital Media contributes 40.57%. The company serves customers across 15 Indian states and nine international countries. Exports constitute 21.85% of total turnover.

Governance and Leadership

The Risk Management and ESG Committee oversees sustainability-related decision-making. The committee is chaired by Independent Director Ms. Bhumika Batra, with Mr. Pradeep Udhas and Mr. Amit Saharia as members. Policies covering anti-bribery, conflict of interest, diversity, equity, and inclusion (DEI), and human rights have been approved by the Board. These policies extend to value chain partners where applicable.

No disciplinary actions were taken against directors, key managerial personnel (KMPs), employees, or workers for bribery or corruption during FY26. Similarly, no complaints regarding conflicts of interest were received from directors or KMPs. The company reported zero instances of fines or penalties from regulators or law enforcement agencies.

Employee Welfare and Diversity

As of the end of FY26, Hinduja Global Solutions employed 11,296 individuals, comprising 6,344 permanent employees and 4,952 non-permanent staff. Women constitute 44% of the total workforce. The company reports a permanent employee turnover rate of 60% in FY26, up from 36% in FY25 and 38% in FY24.

Health insurance covers 91% of permanent employees, while accident insurance coverage stands at 100%. Parental leave retention rates show that 85% of female permanent employees who took leave were retained, compared to 25% of male employees. The company spent 1.10% of total revenue on employee well-being measures, an increase from 1.07% in the previous year.

Environmental Impact

Total energy consumption rose to 48,266.84 GJ in FY26 from 41,423.50 GJ in FY25. This increase was driven entirely by non-renewable sources, with electricity consumption accounting for the majority of usage. Renewable energy consumption remained at zero.

Greenhouse gas emissions data reveals:

Scope 2 emissions, primarily from purchased electricity, dominate the carbon footprint. Waste generation increased significantly, with e-waste rising to 16.81 metric tonnes from 6.08 metric tonnes in FY25. The company manages e-waste through authorized third-party vendors.

What the Numbers Show

A notable divergence exists between revenue-linked spending and workforce stability metrics. While spending on employee well-being increased marginally from 1.07% to 1.10% of revenue, the permanent employee turnover rate surged by 24 percentage points to 60% in FY26. This sharp rise in attrition contrasts with the stable investment in welfare programs, suggesting potential challenges in retention beyond financial or benefit-related factors.

Additionally, related-party transactions remain significant. Sales to related parties accounted for 36% of total sales, unchanged from FY25. Purchases from related parties stood at 6%, down from 7% in the prior year. All loans and advances, as well as investments, were directed toward related parties.

Hinduja Global Solutions Limited reported a consolidated net loss of ₹66.26 crore for the quarter ended June 30, 2026 (Q1FY27), widening significantly from the net loss of ₹46.33 crore in the corresponding period of FY26. The deterioration was primarily driven by planned phase-outs of large client engagements and associated one-time costs, alongside a marginal decline in revenue from operations to ₹1,050.36 crore from ₹1,056.23 crore year-on-year. Despite the operational headwinds, the Board of Directors approved a final dividend of ₹5 per equity share for the financial year 2025-26, subject to shareholder approval at the upcoming Annual General Meeting.

The company’s total income stood at ₹1,201.16 crore, while total expenses rose to ₹1,253.93 crore. Employee benefits expenses increased to ₹630.75 crore from ₹598.89 crore in Q1FY26, reflecting continued investment in human capital. Finance costs decreased to ₹45.53 crore from ₹57.89 crore, providing some relief to the bottom line. The statutory auditors, Haribhakti & Co. LLP, issued an unmodified review report on the unaudited standalone and consolidated financial results under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The key financial metrics for the quarter highlight the pressure on profitability despite stable revenue streams:

Venkatesh Korla, Global CEO of HGS, attributed the financial performance to a focus on disciplined execution and cost optimization. He noted that while the results reflected the impact of a large client phase-out, the company made steady progress in expanding its client portfolio with 19 new logos in digital CX/tech solutions and eight in HRO/Payroll processing during the quarter.

GAAR Tax Dispute and Legal Stay

A material disclosure in the filing concerns an ongoing General Anti-Avoidance Rule (GAAR) related income-tax proceeding. The Income Tax Department had directed the Deputy Commissioner of Income-tax to disregard the brought-forward losses of the demerged entity, NXT Digital, characterizing the arrangement as impermissible avoidance. This directive could result in a potential tax demand of ₹281.59 crore.

However, Hinduja Global Solutions filed a writ petition before the Hon’ble Bombay High Court on November 7, 2025. On December 19, 2025, the Court granted an interim stay on the implementation of the GAAR Panel’s directive. Based on management’s assessment and external legal advice, the company believes its position is tenable and has not recorded any adjustment in the current quarter’s financial statements regarding this matter. The case remains sub-judice.

Strategic Developments and Dividend

Beyond financials, the Board approved the convening of the 31st Annual General Meeting (AGM) on September 25, 2026, via Video Conferencing. The register of members will remain closed from September 19, 2026, to September 21, 2026, for the AGM and dividend payment. Shareholders holding records as of September 18, 2026, will be eligible for the ₹5 per share final dividend, payable within 30 days of shareholder approval.

Additionally, the Board approved the re-appointment of Mr. Amit Saharia as a Non-Executive Non-Independent Director, who retires by rotation. Operationally, HGS incorporated a wholly-owned subsidiary, HGS MENA IT Consulting L.L.C., in Dubai to strengthen its presence in the Middle East and North Africa region. The digital media division, NXTDIGITAL, launched Project GANGA in Uttar Pradesh, aiming to connect over 2 million households with high-speed broadband through 8,000–10,000 digital service providers.