🧾 At a glance
Hinduja Global Solutions (HGS) posted FY25 revenue of ₹5,415 crore and PAT of ₹482 crore, marking a solid YoY profit jump of 27.6%. But beneath the profit pie lies a bigger dessert — a juicy cash reserve of ₹1,000+ crore and a balance sheet so asset-light, it could float.
CMP as of May 28, 2025: ₹529.65
Market Cap: ₹6,800 crore+
YoY PAT Growth: 27.6%
EBITDA Margin: 12.1%
Cash & Equivalents: ₹1,013 crore
🏢 About the Company
Hinduja Global Solutions Ltd (NSE: HGS / BSE: 532859) is the BPO and digital arm of the Hinduja Group. It operates across 7 countries, offering digital customer experience (CX), healthcare solutions, automation, analytics, and contact center services.
The company has been on a transformation journey, post the demerger of its Healthcare Services vertical (which is now under NXTHealth), moving into higher-margin, tech-led businesses under its digital arm “HGS Digital.”
🧑💼 Key Managerial Personnel (KMP)
- Chairman: Ashok P. Hinduja
- CEO: Venkatesh Korla (Digital Services)
- CFO: Kiran Kabra
- Company Secretary: Pradeep Goel
📊 Financials (FY25 vs FY24)
| ₹ in Cr | FY25 | FY24 | % Change |
|---|---|---|---|
| Revenue from Operations | 5,415.4 | 5,074.7 | +6.7% |
| EBITDA | 656.3 | 585.8 | +12.0% |
| EBITDA Margin | 12.1% | 11.5% | – |
| PAT | 482.0 | 377.6 | +27.6% |
| EPS (Basic) | ₹23.13 | ₹17.90 | +29.2% |
| Net Cash on Books | ₹1,013 Cr | ₹956 Cr | +5.9% |
🟢 Operating leverage is kicking in. Revenue grew just ~7%, but EBITDA and PAT grew double that.
🧱 Segment Breakdown
1. Digital CX (Customer Experience) Services
- Primary revenue driver.
- Focus on AI, automation, and digital transformation.
- Growth driven by large global contracts in BFSI, telecom, and healthcare.
2. HGS International (legacy BPO)
- Stable, low-margin business.
- Continued optimization and automation efforts to preserve margins.
3. Investment Business (via NXTHealth stake and others)
- The company owns significant stake in NXTHealth, spun off earlier.
- Also includes investments into startups and digital health.
📉 Q4 FY25 Snapshot
| ₹ in Cr | Q4 FY25 | Q4 FY24 | % Change |
|---|---|---|---|
| Revenue | 1,423.5 | 1,327.3 | +7.2% |
| EBITDA | 156.8 | 132.6 | +18.2% |
| PAT | 108.2 | 96.4 | +12.2% |
💰 Forward-Looking Fair Value (FV)
Let’s assume HGS sustains ₹500 Cr annual PAT in FY26. With a reasonable 15x P/E (considering strong cash flows, international clientele, and shift to digital CX), here’s the math:
Estimated Forward Fair Value = ₹500 Cr × 15 = ₹7,500 Cr
Current Market Cap = ₹6,800 Cr
Upside Potential = ~10.3%
Nothing multibagger here — but a steady compounder with dividends, cash reserves, and potential monetization of digital assets.
📈 Growth & Industry Outlook
- CX outsourcing is booming globally, especially with the AI + human hybrid model gaining traction.
- India’s BPO players are rebundling themselves as “Digital Experience” providers.
- HGS is well-placed, but will need a breakout vertical (think: Healthcare AI, Fintech bots) to go from 1x to 3x.
🧠 EduInvesting Take
HGS is like that quiet backbencher who aces the exam without flexing.
💬 Not buzzy like Infosys.
💬 Not loud like Nazara.
💬 But it gets the job done — consistently, profitably, and with a ₹1,000 Cr piggy bank.
Would we sell our kidneys for it? No.
But would we let it sit silently in our portfolio compounding away? Hell yes.
⚠️ Risks & Red Flags
- Low growth in topline: Sub-10% growth is nothing to brag about.
- Heavy dependence on global outsourcing: Currency risk, economic cycles.
- Legacy business drag: Old BPO still contributes a chunk.
🏷️ Tags:
Hinduja Global Solutions, HGS Q4 FY25, HGS FY25 Results, BPO stock India, digital CX, Hinduja Group, NSE AFFORDABLE, eduinvesting earnings coverage, dividend stocks, cash rich Indian companies
✍️ By: Prashant Marathe
📅 Date: May 28, 2025
