HGM posts Rs 2.55 crore consolidated loss as revenue nearly halves

HandsOn Global Management (HGM) Limited reported a consolidated loss of Rs 2.55 crore from continuing operations for the quarter ended September 30, 2026, reversing a Rs 49.64 lakh profit a year earlier, as revenue from operations fell to Rs 10.37 crore from Rs 18.95 crore and other expenses rose to Rs 4.17 crore.

Why did HGM report a consolidated loss for the September 2026 quarter?

HGM reported a Rs 2.55 crore loss after tax from continuing operations in the quarter ended September 30, 2026, compared with a Rs 49.64 lakh profit in the quarter ended September 30, 2025. The reversal followed an Rs 8.58 crore year-on-year decline in revenue from operations, while total expenses fell by a smaller Rs 4.77 crore.

Revenue from operations was Rs 10.37 crore in the September 2026 quarter, down from Rs 18.95 crore a year earlier and Rs 10.80 crore in the preceding June 2026 quarter. Total income, including other income, was Rs 11.19 crore, compared with Rs 19.77 crore a year earlier and Rs 11.09 crore in the June 2026 quarter.

The pre-tax loss from continuing operations was Rs 2.65 crore, against a pre-tax profit of Rs 1.16 crore in the September 2025 quarter. A deferred-tax credit of Rs 10.31 lakh reduced the continuing-operations loss after tax to Rs 2.55 crore, and HGM reported no current-tax charge in the latest quarter.

How did HGM's quarterly income and expenses change?

HGM's total expenses were Rs 13.84 crore in the September 2026 quarter, versus Rs 18.61 crore in the September 2025 quarter, but they exceeded total income of Rs 11.19 crore by Rs 2.65 crore. Other expenses changed most visibly, nearly doubling year on year despite the lower revenue base.

Employee benefits expense declined to Rs 8.89 crore from Rs 15.75 crore, while finance costs rose to Rs 39.18 lakh from Rs 14.39 lakh. Depreciation and amortisation fell to Rs 38.74 lakh from Rs 60.26 lakh, so the increase in other expenses was the principal adverse movement among the disclosed cost lines.

Other income was Rs 81.70 lakh, compared with Rs 81.49 lakh a year earlier. HGM said consolidated other income and other expenses include a net foreign-exchange gain of Rs 43.44 lakh in the September 2026 quarter, versus a gain of Rs 46.05 lakh in the comparable quarter; the filing does not provide a further line-by-line explanation for the increase in other expenses.

What were HGM's half-year consolidated results?

HGM recorded a Rs 4.61 crore loss after tax from continuing operations in the half year ended September 30, 2026, compared with a Rs 2.22 crore profit in the corresponding half year of 2025. Revenue from operations fell by Rs 11.39 crore to Rs 21.17 crore, while other expenses increased by Rs 4.76 crore to Rs 8.01 crore.

For the six-month period, total income decreased to Rs 22.28 crore from Rs 33.89 crore, whereas total expenses declined to Rs 27.12 crore from Rs 30.33 crore. This produced a pre-tax loss from continuing operations of Rs 4.84 crore, against a Rs 3.56 crore pre-tax profit in the prior-year half.

Employee benefits expense was Rs 17.04 crore for the latest half year, down from Rs 25.85 crore in the prior-year period. Finance costs rose to Rs 88.85 lakh from Rs 22.28 lakh, while depreciation and amortisation increased to Rs 1.18 crore from Rs 1.01 crore.

What did discontinued operations contribute to HGM's result?

HGM's discontinued operations made an Rs 11,000 loss after tax in the September 2026 quarter, taking the total loss from continuing and discontinued operations to Rs 2.55 crore. The comparable discontinued-operations loss was Rs 10,000 in the September 2025 quarter, when the group reported a combined Rs 49.54 lakh profit after tax.

For the half year ended September 30, 2026, discontinued operations recorded an Rs 24,000 loss, compared with an Rs 23,000 loss in the comparable period. The auditor said it had not reviewed the financial results of two subsidiaries disclosed as discontinued operations, which had total assets of Rs 3.25 lakh at September 30, 2026, and described the interim financial information as not material to the group.

HGM's total comprehensive loss was Rs 2.55 crore in the September 2026 quarter. In the September 2025 quarter, total comprehensive loss was Rs 7.85 lakh despite a Rs 49.54 lakh combined profit after tax, because the prior-year quarter included a Rs 57.39 lakh other comprehensive loss from changes in the fair value of fair-value-through-other-comprehensive-income equity instruments.

What does HGM's September 2026 balance sheet show?

HGM had consolidated total assets of Rs 67.88 crore at September 30, 2026, down from Rs 72.92 crore at March 31, 2026. Cash and cash equivalents decreased to Rs 2.79 crore from Rs 6.28 crore, while trade receivables declined to Rs 20.96 crore from Rs 27.77 crore.

Other equity turned negative at Rs 32.14 lakh at September 30, 2026, compared with positive other equity of Rs 7.79 crore at March 31, 2026. Equity share capital was unchanged at Rs 12.60 crore, and consolidated total equity and liabilities were Rs 67.88 crore.

HGM reported Rs 15.50 crore of non-current borrowings and Rs 1.00 crore of current borrowings at September 30, 2026. It also recorded a Rs 5.50 crore loan to a related party during the half year; the consolidated cash-flow statement showed net cash used in investing activities of Rs 5.00 crore, compared with net cash generated of Rs 51.08 lakh a year earlier.

Conclusion

HGM's September 2026-quarter result marked a reversal from profit to loss in continuing operations: revenue from operations fell to Rs 10.37 crore from Rs 18.95 crore, while other expenses rose to Rs 4.17 crore from Rs 2.12 crore. The six-month figures show the same pattern, with a Rs 4.61 crore continuing-operations loss against a Rs 2.22 crore profit a year earlier.

The disclosed matter to watch is the accounting impact of HOVS LLC's demerger of assets and liabilities. HGM said its US subsidiary received regulatory approvals following board approval dated February 10, 2025, but will account for the impact only when it receives approval from the Reserve Bank of India.