Mumbai – Hinduja Global Solutions (HGS) reported a softer third quarter for FY2026, with margins under pressure even as the company accelerated its AI-led transformation strategy and expanded client wins.
The BPM and digital media major posted consolidated revenue from operations of ₹1,075.4 crore for Q3 FY26, up 1.1% year-on-year. However, total income declined 3.5% YoY to ₹1,192.2 crore. EBITDA for the quarter stood at ₹133.7 crore, with margins narrowing sharply to 11.2% compared to 19.0% in Q3 FY25.
For the nine-month period ended December 31, 2025, revenue from operations stood at ₹3,222.7 crore, down 0.6% YoY, while total income declined 1.6% to ₹3,602.4 crore. EBITDA margins for 9M FY26 came in at 12.5%, compared to 14.5% in the corresponding period last year.
The company attributed the softer quarter partly to client-specific volume shifts, even as it highlighted steady progress in its AI-driven transformation agenda.
“This quarter demonstrated the resilience of our business and the steady progress of our transformation agenda,” said Venkatesh Korla, Global CEO of HGS. “While a few client-specific volume shifts had an impact, our fundamentals remained strong, supported by healthy new client momentum and the continued expansion of key client relationships.”
HGS added 21 new digital CX/technology clients and 16 HRO/payroll processing clients during the quarter. The company also signed multiple AI-led early-scale deployment engagements across BFSI, retail and technology sectors. Its Agentic-AI solutions, supported by a human-in-the-loop model, are currently seeing active deployments in banking, healthcare and consumer services.
“With rising demand for AI-driven CX and intelligent operations, enterprises are looking for partners who can combine domain expertise, advanced AI capabilities and a verticalized model,” Korla added.
As of December 31, 2025, HGS had 423 active digital CX/tech clients and 873 HRO/payroll clients. Its digital media arm, NXTDIGITAL, serves over 4.8 million customers. The company operates across 10 countries with 30 global delivery centers and employs 17,549 people.
NXTDIGITAL reported steady operational performance during the quarter. Broadband subscriber traction remained consistent, supported by improved customer mix and higher-speed plan uptake. The company has operationalized 59 of the 100 newly identified Tier-III towns targeted for expansion, with the remaining scheduled to go live by Q1 of the next fiscal.
“The broadband vertical recorded sequential margin improvement through cost optimization and better capacity utilization, while our digital television business maintained ARPU stability alongside operating efficiencies,” said Vynsley Fernandes, Whole-time Director of HGS and CEO of NXTDIGITAL media businesses.
During the quarter, HGS also received multiple analyst recognitions, including leadership positioning in NelsonHall’s GenAI-enabled Operational Transformation NEAT assessment and Everest Group’s PEAK Matrix reports.
The company said it enters the final quarter of FY2026 with improved visibility and confidence in its AI-led growth trajectory, even as near-term margin pressures persist amid ongoing transformation investments.
