Hinduja Global Solutions (HGS), a global leader in customer experience management and digital transformation, has successfully completed the postal ballot process for the re-appointment of its key executive leadership, following earlier announcement of strong Q2 FY2026 financial results.

Postal Ballot Results and Shareholder Approval

The company has announced the successful completion of its postal ballot process, with shareholders approving the re-appointment of Mr. Vynsley Fernandes (DIN: 02987818) as Whole-time Director. The resolution was passed with requisite majority and deemed approved on December 26, 2025, the last date of e-voting.

Recent Financial Performance

Prior to this corporate governance milestone, HGS reported solid financial results for Q2 FY2026:

For the six-month period, total income reached ₹2,410.20 crore with revenue from operations at ₹2,147.30 crore.

Business Growth and Global Presence

The company demonstrated strong client acquisition momentum during Q2, adding 19 new digital CX/tech solution clients and securing 10 new HRO/Payroll processing clients. HGS maintains a robust global footprint with operations across nine countries, 30 global delivery centers, and a workforce of 18,017 employees as of September 30, 2025.

Corporate Governance and Compliance

The postal ballot process was conducted in accordance with Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The voting results and scrutinizer's report have been filed with BSE Limited and National Stock Exchange of India Limited, ensuring full regulatory compliance.

Strategic Outlook

With confirmed leadership continuity and strong operational performance, HGS appears well-positioned for sustained growth in the competitive customer experience management sector. The re-appointment of Mr. Fernandes signals strategic stability, particularly for the company's media business segment, while the robust client acquisition trend supports future revenue expansion potential.

In a significant development, the Bombay High Court has granted an interim stay on the Approving Panel's direction under General Anti-Avoidance Rules (GAAR) against Hinduja Global Solutions Ltd. (HGS), providing crucial relief to the company from a Rs 1,203.00 crore tax recovery order.

Court Ruling Provides Relief

The Bombay High Court heard HGS's writ petition on December 19, 2025, and delivered a favorable order for the company. The court's decision includes two key provisions:

Background of the GAAR Panel Direction

The case stems from the GAAR Panel's earlier classification of the merger between HGS and NxtDigital Ltd. as an impermissible tax avoidance arrangement. The panel had found that:

• The merger lacked genuine commercial substance or business synergy
• Internal communications indicated tax savings were the primary motive
• The transaction was structured primarily for tax avoidance purposes

Financial Details of the Original Case

The GAAR Panel's investigation revealed a complex corporate restructuring:

Company's Response and Legal Actions

HGS has been actively responding to notices from Income Tax authorities for Assessment Years 2021-22 to 2023-24. The company has taken appropriate legal steps, including filing the writ petition that resulted in the favorable interim order.

Notably, the demerger of Digital, Media and Communication Business Undertaking of NxtDigital into HGS was approved by the National Company Law Tribunal (NCLT) and was not challenged by the Income Tax department at that time.

Current Status and Implications

With the Bombay High Court's interim stay, HGS has stated that there is no adverse financial impact from the GAAR Panel's direction as of now. The matter will be further heard in January 2026, providing the company time to present its case comprehensively.

This development represents a temporary reprieve for the Hinduja Group company while the legal proceedings continue. The case continues to highlight the ongoing tension between corporate restructuring strategies and tax authorities' interpretation of genuine business purposes under India's anti-avoidance regulations.