Hinduja Global Solutions (HGS) Q2 24/25 earnings summary

Executive summary

• Q2 FY2025 operating revenue was ₹1,087.15 crore, down 7.9% YoY; EBITDA was ₹154.8 crore at a 12.8% margin.

• H1 operating revenue was ₹2,179.1 crore, down 5.8% YoY; EBITDA was ₹298.3 crore at a 12.3% margin.

• H1 PAT of ₹111.01 crore included a ₹218.54 crore gain on the healthcare-business sale; continuing operations recorded an H1 loss after tax of ₹107.53 crore.

• Macro pressure, delayed contract awards and lower UK revenue weighed on results, while management cited healthy client expansion opportunities and pipeline.

Financial highlights

• Q2 total income was ₹1,207.58 crore, down 6.2% YoY; operating revenue was ₹1,087.15 crore and EBITDA was ₹154.8 crore.

• Q2 continuing-operations loss after tax was ₹50.51 crore.

• H1 total income was ₹2,426.2 crore, down 4.3% YoY; EBITDA was ₹298.3 crore, down 24.7% YoY.

• H1 PBT was a loss of ₹84.9 crore; reported PAT of ₹111.01 crore included discontinued operations.

Outlook and guidance

• FY25 business and operational targets were on track; management expected faster decisions as election uncertainty cleared and described client engagement and pipeline as healthy.

• Two North American core technology-services contracts are expected to generate revenue during FY25, with fuller benefits in FY26 and potential longer-term margin improvement.

• Management’s 2027 ambition is to become a preferred digital transformation partner for major global brands, expanding digital operations and AI-supported services.

• Technology-enabled CX pipeline includes digital-services interest from the UK, Australia and the US; South Africa prospects were also described as promising.

• OneBusiness completed a pilot, with commercial rollout planned across key markets; traction was expected by Q4.