Hinduja Global Solutions (HGS), a global leader in business process management, has reported its financial results for the quarter, showcasing a strong focus on margin expansion and digital services.

Financial Highlights

HGS reported:

• Operating revenue: Rs 1,056.20 crore (US$ 123.90 million)
• Total income: Rs 1,187.30 crore (US$ 139.20 million)
• Total Profit After Tax (PAT): Rs 11.20 crore (US$ 1.30 million)
• EBITDA: Rs 159.70 crore (US$ 18.70 million)

Margin Expansion

A key highlight was the significant improvement in EBITDA margins, which stood at 13.5%. This represents a 169 basis points expansion year-over-year, reflecting the company's strategic shift towards higher-margin digital services and the deployment of its internally developed Agentic AI platform, HGS Agent X.

Revenue Mix and Digital Focus

HGS is actively changing its revenue mix to emphasize AI and Applied AI-enabled operations. The company's sales pipeline shows strong traction for digital services, with the current order pipeline in the Americas region being upwards of 55% in this segment.

AI Platform Deployment

The company's AI platform, HGS Agent X, has been deployed across 20 clients, covering approximately 5,000 active users. This deployment has delivered impressive results:

• 40% training optimization
• 25% productivity gains
• 30% reduced costs
• 89% reduction in employee attrition
• 8% improvement in CSAT/NPS
• 87% cross-selling gains in lifetime value

Digital Media Business Update

HGS's digital media business, NXTDIGITAL, maintained stable Average Revenue Per User (ARPU) figures. The organic business segment and CelerityX together contributed 37% of revenues in Q1, up from 30% in the previous fiscal year.

Market Challenges and Strategy

Despite the positive margin growth, HGS acknowledges continued macro-economic volatility and extended client sales cycles. Seasonality in key verticals has moderated revenue growth. In response, the company is emphasizing margin expansion over topline growth, driven by the changing revenue mix toward digital services and the deployment of its AI platform.

Future Focus

HGS has outlined six pillars of focus for the future:

1. Changing revenue mix to be more AI and Applied AI-enabled
2. Sharpening sector focus on BFSI, Retail & CPG, Healthcare, and the UK public sector
3. Building a diversified, non-linear growth engine through consultative sales
4. Pursuing acquisitions and partnerships to expand capabilities
5. Aggressively reskilling employees to create AI, domain, and vertical expertise
6. Investing in the development of vertical PaaS solutions

Revenue Composition

HGS's revenue composition for the quarter was as follows:

This revenue breakdown highlights the company's diverse portfolio and its strong presence in the technology and telecom sectors.

Hinduja Global Solutions Limited (HGS) has announced a significant development in its corporate structure. The company's step-down wholly-owned subsidiary, Hinduja Global Solutions MENA FZ-LLC, has been voluntarily liquidated as of July 23, 2025.

Key Details of the Liquidation

• Approval Authority: The liquidation was approved by the Dubai Development Authority.
• Effective Date: The de-registration and voluntary liquidation were completed on July 23, 2025.
• Purpose: This move is part of HGS's efforts to simplify its overall corporate structure.

Impact on Corporate Structure

According to the company's disclosure, the liquidation of Hinduja Global Solutions MENA FZ-LLC is expected to streamline HGS's organizational structure. The step-down subsidiary has ceased to exist effective from the liquidation date.

Financial and Shareholding Implications

• Quantitative Effect: The company has not disclosed any specific quantitative impact of this restructuring.
• Shareholding Changes: There are no changes to the shareholding pattern of any entities involved.
• Promoter Benefits: HGS has explicitly stated that there are no benefits to the promoter/promoter group or group companies from this restructuring.

Corporate Governance

This announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. HGS has provided detailed disclosures as required by SEBI regulations, demonstrating its commitment to transparency in corporate actions.

About Hinduja Global Solutions

Hinduja Global Solutions Limited is a business process management (BPM) organization headquartered in Mumbai, India. The company is part of the multi-billion dollar conglomerate, Hinduja Group.

Investors and stakeholders are advised to monitor further communications from the company for any additional details or implications of this corporate restructuring.