Hinduja Global Solutions Limited (HGS) AI Stock Analysis

• Market Cap: ₹19.25B
• Dividend Yield: 1.51%
• Average Volume (3M): 1.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -2.43%
• EPS Growth: -100.43%
• Country: IN
• Employees: 18,169
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): -4.20
• Shares Outstanding: 46,520,287
• 10 Day Avg. Volume: 931
• 30 Day Avg. Volume: 1,204
• PEG Ratio: -2.75
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 10.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹398.00 ▼(-11.43% Downside)

The overall stock score is primarily influenced by operational challenges and a negative P/E ratio, indicating potential overvaluation. The technical analysis suggests a bearish trend, although the RSI is neutral. The stable balance sheet and positive cash flows provide some support, but the need for improved operational efficiency is evident.

Positive Factors

Relatively stable balance sheet

A healthy equity ratio and declining debt-to-equity indicate disciplined financial management and lower solvency risk. This strengthens the company's ability to absorb demand shocks, finance strategic investments or digital investments without immediate refinancing pressure, supporting medium-term resilience.

Positive operating cash flow

Consistent positive operating cash flow shows the core BPM business converts revenue into cash, supporting working capital, capex and debt service. Strong cash conversion underpins sustainability of operations and funding for technology investments, even amid cyclical volume swings.

Diversified contracted BPM revenue streams

Multi-industry, contract-based revenue (contact centers, back-office BPM, managed digital services) provides stable, recurring cash flows and client stickiness. Diversification across verticals and service types reduces single-client concentration risk and supports cross-sell and margin expansion opportunities.

Negative Factors

Declining revenue and negative EBIT margin

Falling top-line and negative operating profit signal structural operational issues: pricing pressure, cost inflation, or underutilized capacity. Persistent negative EBIT undermines reinvestment capacity and long-term profitability unless operational efficiency or revenue mix materially improves.

Fluctuating free cash flow and high capex

Volatile free cash flow and elevated capex reduce available cash for deleveraging, dividends or acquisitions. Structural variability in FCF raises refinancing and liquidity risk, making sustained investment or margin recovery dependent on stabilizing capex requirements and improving operating leverage.

High total debt level

High absolute debt increases interest and refinancing exposure, particularly with compressed margins and revenue declines. Debt servicing could constrain strategic flexibility, limit capacity for M&A or digital investment, and prolong recovery if earnings improvement lags cash generation improvements.

Hinduja Global Solutions Limited Business Overview & Revenue Model

Company Description

Hinduja Global Solutions Limited provides business process management services in the United States, Canada, Europe, India, and internationally. It provides consumer facing services, such as consumer engagement, work at home, HGS work cloud solutions; business process optimization solutions, such as back-office, human resources outsourcing, and B2B services; and contact center transformation solutions, such as cognitive contact center, and contact center for analytics and intelligence. The company also offers digital solutions, including digital experience, automation, analytics, and cloud services; and healthcare services, such as enrollment, member engagement management, mailroom automation, provider and broker, and custom solutions consulting services. In addition, it is involved in investment activities; and the provision of contact center, consulting, call center, and offshoring services, as well as provides platform-based services to help health insurance companies. Further, the company offers digital marketing and consulting services; and cloud migration and cloud monitoring services. It serves customers in automotive, banking, financial, insurance, consumer electronics and technology, consumer packaged goods, healthcare, public, retail and ecommerce, travel and hospitality, and telecom sectors. The company was formerly known as HTMT Global Solutions Limited and changed its name to Hinduja Global Solutions Limited in December 2008. Hinduja Global Solutions Limited was founded in 1973 and is headquartered in Bengaluru, India.

How the Company Makes Money

Hinduja Global Solutions generates revenue primarily through its business process outsourcing (BPO) services, which include customer service, technical support, and other back-office functions. The company's revenue model relies on a combination of fixed-price contracts, time-and-material contracts, and performance-based pricing. Key revenue streams include long-term contracts with clients across diverse sectors, enabling stable and recurring revenue. Additionally, HGS has established significant partnerships with major technology and service providers, which enhances its service offerings and attracts more clients. The company's focus on digital transformation and analytics also positions it to capitalize on emerging market trends, contributing to its overall earnings.

Hinduja Global Solutions Limited Financial Statement Overview

Summary

Hinduja Global Solutions Limited faces operational challenges with declining revenues and negative EBIT margins. However, it maintains a stable balance sheet with manageable debt levels. Cash flows are positive but inconsistent, highlighting the need for improved operational efficiency and cost control.

Income Statement

The income statement shows a decline in revenue with a negative EBIT margin, indicating operational challenges. Gross profit margin remains high, but net profit margin is low due to high operating expenses. The company has faced revenue declines over the years, suggesting growth challenges.

Balance Sheet

The balance sheet is relatively stable with a healthy equity ratio and decreasing debt-to-equity ratio, reflecting good financial management. However, the company has high total debt, which poses potential risks if cash flows are insufficient to cover obligations.

Cash Flow

Cash flow analysis reveals positive operating cash flow, but fluctuating free cash flow growth, indicating inconsistent cash management. The operating cash flow to net income ratio is strong, suggesting good cash conversion, yet capital expenditures remain high.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.68B	44.04B	46.16B	44.86B	42.43B	26.02B
Gross Profit	42.92B	43.43B	18.93B	44.39B	8.90B	2.34B
EBITDA	8.28B	8.12B	8.28B	7.78B	3.96B	395.66M
Net Income	-267.00M	1.21B	1.33B	3.32B	60.47B	3.36B
Balance Sheet
Total Assets	112.23B	111.72B	111.25B	113.64B	116.37B	43.45B
Cash, Cash Equivalents and Short-Term Investments	7.33B	44.55B	28.98B	11.52B	35.67B	5.35B
Total Debt	11.87B	19.43B	21.07B	9.98B	14.09B	11.79B
Total Liabilities	-78.55B	33.17B	34.82B	26.62B	34.07B	22.60B
Stockholders Equity	78.55B	77.08B	74.88B	85.47B	80.75B	20.85B
Cash Flow
Free Cash Flow	812.80M	2.14B	77.78M	-1.83B	314.47M	5.34B
Operating Cash Flow	2.94B	4.57B	1.92B	1.11B	5.30B	6.92B
Investing Cash Flow	1.79B	5.02B	1.74B	-881.76M	19.21B	-2.09B
Financing Cash Flow	-3.43B	-8.98B	-8.08B	-11.08B	-8.67B	-4.76B

Hinduja Global Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 449.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HGS, the sentiment is Negative. The current price of 449.35 is above the 20-day moving average (MA) of 419.11, above the 50-day MA of 442.53, and below the 200-day MA of 505.69, indicating a bearish trend. The MACD of -11.52 indicates Negative momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 58.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HGS.

Hinduja Global Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMSINFO	74 Outperform	₹51.83B	14.48	―	2.71%	0.13%	-3.14%
BLS	70 Outperform	₹106.11B	17.62	―	0.31%	41.61%	44.11%
PDSL	66 Neutral	₹47.82B	44.08	―	0.91%	11.49%	-32.79%
ONEPOINT	66 Neutral	₹13.49B	34.38	―	―	25.17%	9.55%
UDS	63 Neutral	₹10.21B	8.72	―	―	8.98%	13.54%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
HGS	49 Neutral	₹19.25B	-2,000.50	―	1.51%	-2.43%	-100.43%

Hinduja Global Solutions Limited Corporate Events

HGS Unveils Explainable AI Platform AMLens to Transform AML Investigations

HGS has launched AMLens, an AI-powered, explainable Anti-Money Laundering solution designed to help financial institutions speed up investigations, cut down on false positives and improve regulatory compliance. Built with a modular, API-first architecture and leveraging machine learning and natural language processing, AMLens consolidates structured and unstructured data from internal systems and external sources into an analyst-friendly view, automates routine monitoring and due diligence tasks, and is tailored to major banking and fintech segments. Early deployments indicate the platform can cut case analysis time by about 75%, reduce false positives by more than 60% and deliver a threefold boost in investigator productivity, positioning HGS to deepen its role in AML operations and strengthen its standing as a provider of AI-enabled compliance and risk-management solutions for financial institutions.

Hinduja Global Solutions Closes Trading Window Ahead of Quarterly Results

Hinduja Global Solutions Limited has announced the closure of its trading window for dealings in the company’s equity shares by designated persons and their immediate relatives from 1 January 2026 until 48 hours after the announcement of its financial results for the quarter and nine months ended 31 December 2025. The move, undertaken in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, is a routine governance measure aimed at preventing insider trading ahead of the publication of unaudited standalone and consolidated financial results, underscoring HGS’s adherence to regulatory compliance and transparency for investors and other stakeholders.

Hinduja Global Solutions Wins Interim Stay From Bombay High Court in GAAR Demerger Dispute

Hinduja Global Solutions Limited has secured interim relief from the Bombay High Court in its dispute with tax authorities over the application of General Anti-Avoidance Rules to the demerger of the Digital, Media and Communication business of NXTDigital into the company for assessment years 2022-23 and 2023-24. The court has admitted the company’s writ petition challenging the GAAR panel’s characterization of the demerger as an “impermissible avoidance arrangement” and granted a stay on implementation of the panel’s direction until further hearings in January 2026, and the company said it continues to respond to income tax notices for assessment years 2021-22 to 2023-24, with no current adverse financial impact reported from these matters.