Hinduja Global Solutions Limited

Industrials — Specialty Business Services · NSE

₹357.00−₹0.80 (−0.22%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Hinduja Global Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hinduja Global Solutions Limited engages in technology, AI, and business services in the United States, Canada, the United Kingdom, Europe, India, and internationally. The company operates through Business Process Management and Digital, Media, and Communications segments.

IndustrySpecialty Business Services

SectorIndustrials

Employees16,710

Annual revenue₹4,267 Cr

How does it make money?

Turns over ₹4,267 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 16,710 employees supports ₹25.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -5% while net margin moved -90% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-5%

Margin effect-90%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.7% a year
✗ Profit has declined at 54.1% a year
✗ Profit fell 73.5% in the latest year

Quality vs. Valuation

Company Quality

35/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

4.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 3.9% to 0.4% — each rupee of shareholder capital earns less than it did.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 97% over 3 years, from ₹998 Cr to ₹1,968 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.6x — little room if earnings dip.
🔴Inventory building faster than salesFinancial
Inventory up 85% against revenue up -5% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.3x to 0.6x.
🟡Profit is decliningFinancial
Net profit is down 90% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹280 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 3.9% to 0.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹280 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 1.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹1,661 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-28.8

Loss-making

Negative earnings per share — the business is losing money

ROE

0.4%

Weak

Weak capital efficiency

ROCE

1.4%

Weak

Low return on total capital employed

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

-0.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-73.5%

Falling

Profits are shrinking

Dividend Yield

1.40%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹280 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

3.3x

Operating Margin

-15.0%

Weak

Thin margins leave little room for error

Net Margin

-1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

366.7 / 386.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,486 Cr	₹4,587 Cr	₹4,342 Cr	₹4,267 Cr	-1.7%
EBITDA	₹673 Cr	₹711 Cr	₹806 Cr	₹646 Cr	-1.4%
EBITDA Margin	15.0%	15.5%	18.6%	15.1%	—
PAT (Net Profit)	₹332 Cr	₹133 Cr	₹121 Cr	₹32 Cr	-54.1%
EPS	₹63.66	₹27.52	₹26.1	₹6.92	-52.3%
ROE	3.9%	1.8%	1.6%	0.4%	—
ROCE	3.4%	2.8%	3.1%	1.4%	—
Total Debt	₹998 Cr	₹2,107 Cr	₹1,943 Cr	₹1,968 Cr	+25.4%
Free Cash Flow	-₹183 Cr	₹8 Cr	₹214 Cr	₹280 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.7% a year).

🟡 EBITDA has been broadly flat over 3 years (-1.4% a year).

🟡 EBITDA Margin has held roughly flat at 15.1% over 3 years.

🔴 PAT (Net Profit) has shrunk at 54.1% a year over 3 years.

🔴 EPS has shrunk at 52.3% a year over 3 years.

🔴 ROE has fallen from 3.9% to 0.4% over 3 years (-3.5 pts).

🔴 ROCE has fallen from 3.4% to 1.4% over 3 years (-2.0 pts).

🔴 Total Debt has grown at 25.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹183 Cr to ₹280 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11,564 Cr

Total Liabilities

₹3,128 Cr

Cash & Equivalents

₹569 Cr

Operating Cash Flow

₹413 Cr

Capex

-₹133 Cr

Shareholding (proxy)

Institutional Holding

4.1%

Insider Holding

76.2%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed3 general

Project GANGA launch sends Hinduja Global Solutions shares 17% higher

Business Standard, 10 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Hinduja Global Solutions Share Price Target 2026: Expert Forecast, Growth Catalysts and Key Risks

Univest, 08 MayAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

HGS shareholders approve ₹5 dividend with 99.97% votes at AGM

scanx.trade, 25 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Hinduja Global Solutions Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Buzzing Stocks: HGS surges 13% on project GANGA launch; HDFC Bank gains after Lilavati Trust plea...

Moneycontrol.com, 10 Jun

Hinduja Global Solutions enters AI-led AML space with new platform

Alice Blue, 13 Jan

Watch Items

Revenue growth is negative (-0.6%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑