HGS narrows loss as operating margin recovers, but trails Services peers
Expenses fell 2.69% QoQ while revenue rose 2.46%, but other income exceeded the pre-tax loss.
Filed 12 Nov 2026, 18:37 IST · after market close · Hinduja Global Solutions Ltd (HGS)
Key takeaways
- Consolidated operating margin recovered 5.18 percentage points QoQ to 1.90%, as revenue rose 2.46% while expenses fell 2.69%.
- HGS still reported a consolidated net loss of Rs 12.43 cr, after interest of Rs 50.87 cr and depreciation of Rs 117.53 cr.
- Its 1.90% operating margin was 14.75 percentage points below the Services median across 65 reported peers.
Price around the results
Revenue growth and lower costs restore operating profit
HGS reported consolidated revenue of Rs 1,076.15 cr, up 2.46% QoQ, while expenses declined 2.69%. The combination moved operating profit from a Rs 34.49 cr loss in Q1FY27 to Rs 20.46 cr, lifting operating margin by 5.18 percentage points.
Interest and depreciation still push profit below zero
Interest rose 11.73% QoQ to Rs 50.87 cr, while depreciation remained high at Rs 117.53 cr; together, they more than absorbed operating profit and left pre-tax profit at a Rs 9.62 cr loss. Other income of Rs 138.32 cr was larger than the pre-tax loss, so the reported result does not represent operating earnings alone. Net loss narrowed to Rs 12.43 cr from Rs 66.26 cr in Q1FY27, while the tax rate moved down 3.65 percentage points to -29.21%.
Margin recovery still leaves HGS near the bottom of Services
HGS improved from a -3.28% operating margin in Q1FY27, but its 1.90% margin remained 14.75 percentage points below the 16.65% median for 65 Services peers that had reported. The company ranked eighth from the bottom on operating margin in that comparison. With only Q1FY27 available in the quarter trend, the data shows a sequential recovery rather than a multi-quarter direction.
Results were filed after market close
The consolidated results were filed after market close on 12 November 2026. The quarter's key issue for the next update is whether the operating recovery can offset the continuing burden from interest and depreciation.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,076 cr | ₹1,050 cr | +2.46% |
| Other income | ₹138 cr | ₹151 cr | -8.28% |
| Expenses | ₹1,056 cr | ₹1,085 cr | -2.69% |
| Operating profit | ₹20 cr | ₹-34 cr | — |
| Operating margin (%) | 1.90% | -3.28% | — |
| Interest | ₹51 cr | ₹46 cr | +11.73% |
| Depreciation | ₹118 cr | ₹124 cr | -4.87% |
| Profit before tax | ₹-10 cr | ₹-53 cr | +81.77% |
| Tax | ₹3 cr | ₹13 cr | -79.17% |
| Net profit | ₹-12 cr | ₹-66 cr | +81.24% |
| EPS (₹) | ₹-0.62 | ₹-12.51 | +95.04% |
Operating margin of 1.90% compares with a Services sector median of 16.65% across 65 peers that have reported Q2FY27.
What to watch
- Whether operating margin stays above 1.90% after the 5.18-percentage-point QoQ recovery.
- Whether interest moves below Rs 50.87 cr and depreciation below Rs 117.53 cr.
- Whether the 14.75-percentage-point gap to the Services median narrows.