Hinduja Global Solutions: Navigating Digital Transformation for Future Growth

Hinduja Global Solutions (HGS), a prominent player in digital experience, business process management (BPM), and digital media services, recently unveiled its Q2 and H1 FY26 financial performance and strategic roadmap. The company, operating on a consolidated basis, reported a Q2 total income of INR 1,222.9 crore (USD 141 million) and an operating revenue of INR 1,091.0 crore (USD 125.8 million). While the year-on-year revenue growth for Q2 was a marginal 0.4%, and H1 saw a slight dip of 1.5%, the narrative from management firmly points towards a strategic pivot aimed at long-term, profitable growth driven by digital transformation and operational efficiencies.

For the first half of FY26, HGS recorded a total income of INR 2,410.2 crore (USD 277.9 million) and operating revenue of INR 2,147.3 crore (USD 247.6 million). Despite facing challenging headwinds, the company demonstrated resilience, with EBITDA margins improving to 12.9% in Q2 FY26 from 12.8% in Q2 FY25, and to 13.2% for H1 FY26 from 12.3% in H1 FY25. This expansion in margins underscores the positive impact of their disciplined cost management and transformation initiatives.

Strategic Imperatives: Orchestrating Intelligent Experiences

HGS's new vision is centered on delivering 'Intelligent Experiences' to clients, aiming to be the most trusted partner for global business transformation. This vision is underpinned by a dual focus: intelligent interactions and intelligent operations, both augmented by AI and human talent to ensure predictable and consistent outcomes. The company has outlined several key pillars for its future growth, emphasizing future-focused, growth-oriented service offerings that promise better margins and enhanced customer value.

Key strategic initiatives include significant investments in sales and marketing, a strategic shift towards consultative sales, and leveraging vertical-focused strategies. The company is actively diversifying its portfolio with multi-tower deals and simplifying its organizational structure to foster a leaner, more agile operation. A core element of this strategy is the deep integration of AI across all operations to enhance efficiency, effectiveness, and scalability.

Financial Performance Snapshot (INR Crore)

Note: Total EBITDA includes other income and is a key metric for HGS's operational performance.

Digital Momentum and New Offerings

HGS is witnessing a significant shift in its business pipeline, with 62% now leaning towards digital services and operations. This momentum is fueled by the acquisition of over 35 new clients in H1 FY26 and a sharpened sector focus on BFSI, Consumer Products & Retail, and Healthcare & Lifesciences. The company is actively developing 12 vertical solutions through co-creation with clients, aiming for consistent, high-margin revenue streams.

A notable launch is 'Interaction Intelligence,' an enterprise-grade AI solution that transforms traditional Quality Assurance into a data-driven engine for strategic decision-making. This solution, based on the HGS Agent X framework, analyzes nearly 100% of customer interactions, significantly reducing agent proficiency time from 10-12 weeks to 2-3 weeks and boosting margins by over 30%. Other AI-driven tools like 'Cloud FinOps Navigator' for cloud spending optimization and 'AMLens' for fraud detection further exemplify HGS's technological leadership.

Revenue Split by Source (Q2 FY26)

Strengthening the Digital Media Business

Despite facing intense competition from OTT and free-to-air services, HGS's digital media business is undergoing a strategic overhaul. The launch of 'ONEIPTV' (Internet Protocol Television) is a significant move, offering over 650 live television channels via a single broadband connection. This service is already available in 100 cities and is rapidly expanding, targeting underserved Tier III and IV markets with affordable combo plans.

The enterprise arm, CelerityX, continues to be a sunrise performer, securing new prestigious logos and delivering over 3,000 high-speed broadband links. CelerityX's unique value proposition,