Hinduja Global Solutions (HGS) Q3 24/25 earnings summary

Executive summary

• Q3 FY2025 total income was ₹1,234.87 crore, operating revenue ₹1,064.05 crore and EBITDA ₹234.4 crore, at a 19.0% margin.

• The post-healthcare-divestiture strategy shifts toward technology-led, AI-supported services, managed services and recurring revenue; operations span 18,000 employees, 10 countries and 33 delivery centers.

• Technology demand and new client wins support the pivot, while slow contract decisions, startup costs and offshore migration weigh on near-term revenue and margins.

Financial highlights

• Q3 operating revenue was ₹1,064.05 crore, versus ₹1,087.2 crore in Q2 FY2025 and ₹1,203.7 crore in Q3 FY2024; total income was ₹1,234.87 crore.

• Q3 EBITDA was ₹234.4 crore, versus ₹154.8 crore in Q2 and ₹206.6 crore in Q3 FY2024; margin was 19.0%, up from 12.8% in Q2 and 16.0% a year earlier.

• Q3 consolidated loss after tax was ₹8.59 crore; PBT was ₹41.2 crore versus a Q2 loss of ₹40.7 crore. Elevated deferred tax materially affected quarterly PAT.

• 9M operating revenue was ₹3,243.12 crore and total income ₹3,661.04 crore; EBITDA was ₹532.6 crore at a 14.5% margin, versus ₹602.6 crore and 15.7% in 9M FY2024.

• 9M net profit was ₹102.41 crore, including ₹218.54 crore gain from discontinued operations recognized in Q1; standalone Q3 revenue was ₹430.07 crore and net loss ₹54.80 crore.

Outlook and guidance

• Contract awards and signings are expected to gather pace in FY2026 after a slow FY2025; full revenue benefits from significant new contracts are expected next fiscal year.

• A large American banking IT-services contract began ramping in Q4, with revenue expected from Q1 next fiscal year; startup costs are expected to pressure Q4 margins.

• Offshoring and technology/subscription offerings may lower near-term revenue as billing rates shift, but are expected to improve margins over time; media PBT break-even is targeted within 24–28 months.

• South Africa delivery capacity is set to more than double; the Waterloo, Canada center is planned for April 2025. Satellite-internet opportunity remains dependent on licensing clarity and timing.