Hinduja Global Solutions posts Q2 FY27 recovery

Hinduja Global Solutions Limited (NSE: HGS) reported a sequential improvement in Q2 FY27, with EBITDA rising 36.5% quarter-on-quarter to ₹158.8 crore. EBITDA margin reached 13.1%. The company reported consolidated revenue from operations of ₹1,076.2 crore and total income of ₹1,214.5 crore for the quarter ended September 30, 2026. Consolidated net loss after tax narrowed to ₹12.43 crore from ₹66.26 crore in the previous quarter. The improvement in EBITDA and lower quarterly loss indicate better operating performance. However, revenue from operations remains a key metric to monitor. The company is still reporting a net loss, so the recovery needs to translate into sustained profitability. My view: The sequential improvement is encouraging, particularly in operating margins. However, I would avoid treating one quarter of improvement as evidence of a completed turnaround. The next few quarters should show whether new client engagements and better delivery efficiency can support consistent revenue growth and positive earnings. What to watch next: Conversion of the company's sales pipeline, revenue growth in continuing operations and sustained EBITDA margins. The pending tax proceedings involving a potential demand of ₹281.59 crore also remain a risk to monitor. The Bombay High Court has granted an interim stay, and the matter remains sub judice. Stance: Watch for sustained improvement in revenue and profitability before forming a stronger positive view. !HINDUJA