Hinduja Global Solutions (HGS), a global leader in customer experience management and digital transformation, has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, along with key business updates.

Financial Performance

For Q2 FY2026, HGS reported:

• Total income of Rs. 1,222.90 crore, up 3.0% quarter-on-quarter (QoQ) and 1.3% year-on-year (YoY)
• Revenue from operations at Rs. 1,091.00 crore, increasing 3.3% QoQ and 0.4% YoY
• Total EBITDA of Rs. 158.00 crore, with EBITDA margins at 12.9% for the quarter

For the six-month period:

• Total income was Rs. 2,410.20 crore
• Revenue from operations stood at Rs. 2,147.30 crore

Business Highlights

HGS demonstrated strong client acquisition during Q2:

• Added 19 new digital CX/tech solution clients
• Secured 10 new HRO/Payroll processing clients

The company's global presence includes:

• Operations across nine countries
• 30 global delivery centers
• A workforce of 18,017 employees as of September 30, 2025

Board Approval and Corporate Governance

In a significant corporate development, the Board of Directors has approved the re-appointment of Mr. Vynsley Fernandes as Whole-time Director and Chief Executive Officer-Media Business. The re-appointment is for a three-year term starting from November 14, 2025, subject to shareholder approval through postal ballot.

Looking Ahead

With a solid financial performance and continued client growth, HGS appears well-positioned in the competitive landscape of customer experience management and digital transformation. The company's global footprint and diverse service offerings provide a strong foundation for potential future growth.

As HGS moves forward, investors and industry observers will be keen to see how the company leverages its expanded client base and strategic initiatives to drive further growth and enhance its market position in the global BPM and digital media sectors.

The re-appointment of key leadership also signals continuity in the company's strategic direction, particularly in its media business segment, which could be crucial for long-term stability and growth.

In a significant ruling that underscores the government's stringent stance on corporate tax avoidance, the Approving Panel has classified the merger between Hinduja Global Solutions Ltd. (HGSL) and NxtDigital Ltd. as an impermissible tax avoidance arrangement under India's General Anti-Avoidance Rules (GAAR).

Key Highlights of the Ruling

• The panel has disallowed Rs 1,203.00 crore in tax set-offs.
• Full tax amount recovery ordered, along with interest and penalties.
• The merger was found to lack genuine commercial substance or business synergy.

Background of the Merger

The case revolves around a series of corporate actions that raised red flags with tax authorities:

1. HGSL sold its healthcare division for Rs 8,000.00 crore.
2. This sale generated capital gains of Rs 3,059.00 crore for HGSL.
3. HGSL then merged with loss-making NxtDigital, which had accumulated losses of Rs 1,500.00 crore.
4. The merger allowed HGSL to offset losses against profits, reducing its tax liability by Rs 281.00 crore.

Panel's Findings

The Approving Panel's investigation revealed crucial details that led to their decision:

• Internal communications indicated that tax savings were the primary motive for the merger.
• The panel found no genuine commercial substance or business synergy between HGSL and NxtDigital.
• The merger was deemed a structured transaction designed primarily for tax avoidance.

Implications of the Ruling

This ruling has significant implications for corporate India:

1. It represents a major setback for the Hinduja Group.
2. Reinforces the government's strict approach to tax avoidance through corporate restructuring.
3. Sends a strong message to companies considering similar strategies to reduce tax liabilities.

Financial Impact

The financial consequences of this ruling are substantial:

This case serves as a stark reminder for corporations to ensure that mergers and acquisitions are driven by genuine business rationales rather than tax considerations. It also highlights the effectiveness of India's General Anti-Avoidance Rules in identifying and addressing complex tax avoidance schemes.