HGM Q1 Net Loss ₹30.79 Lakhs, Approves $2M Subsidiary Infusion

Board Meeting Details

The Board of Directors meeting was held on August 14, 2026, commencing at 9:30 AM and concluding at 10:30 AM.

Key Approvals

1. Standalone & Consolidated Financial Results: Approved the unaudited financial results for Q1 ended June 30, 2026, along with the auditors' review report from Lodha & Co LLP.

2. Capital Infusion: Approved infusion of up to US$ 2 million into overseas subsidiary HCI-LLC, Cayman Islands, by way of capital contribution for funding business/operations requirements, subject to completing FEMA/AD-Bank formalities.

3. CSR Policy: Approved the CSR Policy of the Company pursuant to the applicability of the relevant statute.

Standalone Financial Results (Q1 FY27 vs Q1 FY26)

• Revenue from operations: ₹979.50 lakhs (vs ₹1,360.90 lakhs in Q1 FY26)
• Other income: ₹29.15 lakhs (vs ₹51.72 lakhs in Q1 FY26)
• Total Income: ₹1,008.65 lakhs (vs ₹1,412.62 lakhs in Q1 FY26)
• Employee Benefits Expense: ₹755.22 lakhs (vs ₹1,010.11 lakhs in Q1 FY26)
• Finance Costs: ₹27.83 lakhs (vs ₹7.89 lakhs in Q1 FY26)
• Depreciation and Amortization: ₹79.64 lakhs (vs ₹41.00 lakhs in Q1 FY26)
• Other Expenses: ₹189.21 lakhs (vs ₹113.13 lakhs in Q1 FY26)
• Profit/(Loss) before Tax: (₹43.25) lakhs loss (vs ₹240.49 lakhs profit in Q1 FY26)
• Tax Expense: ₹12.46 lakhs (vs ₹(67.63) lakhs in Q1 FY26)
• Profit/(Loss) for the period: (₹30.79) lakhs loss (vs ₹172.86 lakhs profit in Q1 FY26)
• Total Comprehensive Income: (₹30.79) lakhs loss (vs ₹172.86 lakhs profit in Q1 FY26)
• Basic and Diluted EPS: (₹0.24) per share (vs ₹1.37 per share in Q1 FY26)
• Paid-up equity share capital: ₹1,259.50 lakhs (unchanged)

Consolidated Financial Results Notes

The consolidated results include:

• HOVS LLC, USA (wholly owned subsidiary)
• Healthcare Capital Holdings LLC, USA (wholly owned subsidiary, incorporated May 23, 2025)
• HOV Environment LLC (subsidiary of HOVS LLC)
• HOV Environment Solutions Private Limited (subsidiary of HOV Environment LLC)
• Aidéo Technologies LLC, USA (wholly owned subsidiary of Healthcare Capital Holdings LLC effective September 1, 2025)

Auditor's Review

Lodha & Co LLP conducted limited review of both standalone and consolidated financial results and issued unmodified conclusions. The review was performed in accordance with SRE 2410 and SEBI Regulation 33 requirements.

Key Notes to Financial Results

1. Foreign Exchange Impact: Standalone results include foreign exchange fluctuation loss (net) of ₹7.19 lakhs for Q1 FY27 (vs gain of ₹117.85 lakhs in Q4 FY26).

2. Investment in Exela Technologies: Fair value considered as ₹ Nil. Classified as FVOCI equity instrument with changes recognized in Other Comprehensive Income.

3. Segment Reporting: Only one reportable segment - 'IT and IT Enabled services' as per IND AS 108.

4. Previous Period Figures: Figures for quarter ended March 31, 2026 are balancing figures between audited annual figures and unaudited published YTD figures.

5. Demerger Impact: HOVS LLC received US regulatory approval for demerger of assets and liabilities (Board approval dated February 10, 2025). Impact will be accounted after RBI approval.