Hinduja Global Solutions Ltd Q1FY26 – When BPM Meets “Book Value Basement Sale” at 0.31x, and PAT Goes Missing in Action
1. At a Glance
Hinduja Global Solutions Ltd (HGS), the lovechild of BPO sweatshops and cable TV boxes, is currently trading at ₹518 with a market cap of ₹2,408 crore. Over the past three months, it rewarded loyal shareholders with a -4.4% return — the corporate equivalent of a neighbour borrowing sugar and giving back a salt shaker. The company’s price-to-book is an eyebrow-raising 0.31x (yes, you’re technically buying assets at 70% discount, but with the thrill of watching them evaporate). EPS is negative at -₹5.74, and last quarter’s PAT was -₹40 crore, which the board probably labeled as “creative philanthropy.” ROE? A royal 1.6%. ROCE? 3%. Basically, if your neighbourhood paan shop measured return on capital like HGS, you’d stop buying mints from them too.
2. Introduction
Once upon a time, outsourcing was sexy. Companies in the US and UK wanted Indians to answer calls from irate customers who couldn’t figure out how to reboot a router. Enter Hinduja Global Solutions, part of the formidable Hinduja Group empire, which is usually into everything from buses to banks to Bollywood channels.
But HGS went for a mixed thali: Business Process Management (BPM) plus digital cable/broadband. Imagine McDonald’s selling biryani on the side. The combo can work, but often gives indigestion.
And what a decade it’s been! Sales CAGR over 10 years? 5%. Profit CAGR? -3%. Shareholder CAGR over 3 years? -27%. Basically, if you’d invested in HGS three years ago, you’d have had more fun donating your money to Netflix subscriptions.
Now the buzzword is AI. They want to rebrand themselves as an “AI-led CX transformation partner.” Translation: “We bought a few ChatGPT subscriptions and now call ourselves disruptors.”
But wait — there’s more drama: CEO exit, CFO shuffle, subsidiaries merged, CRISIL downgrade, and a loss-making FY25. This company is a full season of Bigg Boss but without Salman Khan’s charisma.
3. Business Model – WTF Do They Even Do?
HGS has two halves:
BPM (78%): The bread, butter, and occasional hairball. They provide contact centre solutions, HR/payroll processing, and back-office services for 292 clients. Basically, if you’ve ever yelled at a customer service agent in Canada, there’s a 30% chance it was HGS.
Digital Services (22%): Through their India-based arm, they beam TV and internet to 4.46 million households. So if your Tata Sky stopped working and you switched to their cable, congrats — you’re part of the turnaround strategy.
And now, their new baby: CelerityX NetX, a platform connecting enterprises with 18,000+ ISPs. Think of it as Tinder for broadband, but without swipes. They claim BFSI and retail anchors are onboard, which usually means “we gave it free trials and begged them to sign the dotted line.”
Question for you: would you trust a company struggling with BPM margins to revolutionize India’s chaotic broadband ecosystem?
4. Financials Overview
Here’s the quarterly breakdown (₹ crore):
Source table
Metric
Q1FY26 (Latest)
Q1FY25 (YoY)
Q4FY25 (QoQ)
YoY %
QoQ %
Revenue
1,056
1,092
1,161
-3.3%
-9.0%
EBITDA
29
17
142
+70.6%
-79.6%
PAT
11
162
-2
-93.2%
N/A
EPS (₹)
3.75
35.6
0.82
-93.2%
N/A
Commentary: EBITDA collapsed 80% sequentially. PAT went from triple digits last year to barely 11 crores now. EPS is positive again, but calling this a comeback is like calling India’s 2007 World Cup campaign a success because we beat Bermuda.
5. Valuation Discussion – Fair Value Range Only
Let’s put on our green eyeshades.
Method 1: P/E Annualized EPS = ₹3.75 × 4 = ₹15. Industry P/E ~36.5. Apply 15–25x because this is not Infosys. Fair Value Range = ₹225–₹375.
Method 2: EV/EBITDA FY25 EBITDA = ₹812 crore. EV = ₹3,495 crore. EV/EBITDA ~4.3x. Industry
