Event Type: Q1 & FY2026-27 Earnings Conference Call held on August 10, 2026, as a follow-up to results announcement.

Date and Time: August 10, 2026 (specific time not mentioned in transcript).

Purpose: Discussion of Q1 FY2027 financial results, business performance updates, and strategic direction including AI transformation and Project Ganga initiative.

Management Participants:

  • Mr. Venkatesh Korla - Global Chief Executive Officer, HGS
  • Mr. Vynsley Fernandes - Whole Time Director, HGS & CEO of NXTDIGITAL Media Business
  • Mr. Mahesh Kumar Nutalapati - Global CFO, HGS
  • Mr. Anand Venugopal from Adfactors PR (Moderator)

Presentation Availability: The transcript was attached to the regulatory filing and is accessible at https://hgs.com/investors/

Compliance Language: The call included forward-looking statements with risks and uncertainties related to future financial and operational performance.

Financial Period Discussed: Q1 FY2027 (April-June 2026)

Key Financial Highlights:

  • Revenue from operations: Rs. 1,050.4 crores (down 3.2% sequentially, down 0.6% YoY)
  • Total income: Rs. 1,201.2 crores (down 4.3% sequentially, up 1.2% YoY)
  • EBITDA: Rs. 116.3 crores with EBITDA margin at 9.7% (vs 15.7% previous quarter, 13.5% YoY)
  • Depreciation: Rs. 123.6 crores
  • Interest cost: Rs. 45.5 crores (down from Rs. 48.1 crores sequentially)
  • Other income: Rs. 150.8 crores
  • PBT before exceptional item: Negative Rs. (-52.8) crores
  • PAT: Negative Rs. (-66.3) crores
  • No exceptional items this quarter

Business Highlights:

  • Added 19 new logos across CX and digital services, 8 clients in HRO and payroll processing
  • Incorporated HGS MENA IT Consulting LLC in Dubai for MENA expansion
  • Strong pipeline in Agentic AI, process automation, contact center modernization, and platform services
  • Focus on three solution areas: Intelligent Interactions, Intelligent Operations, Intelligent Platforms
  • Verticalization into BFSI, Consumer Products and Retail, Healthcare, Public Sector and Utilities
  • 90-day proof of value model for client engagements

Media Business Update (Vynsley Fernandes):

  • Project Ganga launched on June 9, 2026, by Uttar Pradesh Chief Minister Yogi Adityanath
  • Aims to connect over 2 million households with high-speed broadband in UP over 2-3 years
  • Target: 8,000-10,000 entrepreneurs (50% women) as digital service providers
  • 2,000 applications received, 500 applicants trained as of August 4, 2026
  • CelerityX (enterprise business) adding prestigious logos and repeat contracts
  • Digital television facing headwinds, mitigated through cost optimization and bundling strategies
  • High-speed broadband adoption (101+ Mbps) increased from 11% to 15% of subscriber base

Balance Sheet Position (as of June 2026):

  • Total assets: Rs. 11,474 crores
  • Total equity: Rs. 8,402.5 crores
  • Gross treasury and cash surplus: Rs. 6,605 crores
  • Total borrowings: Rs. 1,279 crores
  • Net treasury and cash surplus: Rs. 5,326 crores

Revenue Composition:

  • By source: CX services 54%, Digital and Media services 46%
  • By vertical: Tech, Media & Telecom 46%, CG & Retail 19%, BFSI 17%, Public Sector 12%, Health & Life Sciences 3%, Others 4%
  • By origination: India 40%, US 30%, UK 16%, Others 15%
  • By delivery: India 40%, US 20%, Philippines 15%, UK 14%, Others 11%

Forward-looking Statements:

  • Expect gradual improvement in growth and margins through FY27
  • Transition to outcome-linked and non-headcount commercial structures
  • Margin impact due to investments in AI capabilities, sales, and solutions expected to be temporary
  • 6-8 month typical ramp-up period for new client contributions

Additional Notes Section

The document is a complete transcript of the earnings conference call including Q&A session with analysts. No separate attachments were mentioned in the provided text. Financial data was extensively disclosed during the call presentation.

Q&A Session Highlights:

  • Project Ganga margins clarified as market-competitive pricing, not subsidized
  • New logo ramp-up typically takes 6-8 months to contribute meaningfully
  • AI transition moving from pilots to production, though clients face data governance challenges
  • Intelligent experiences positioning driving integrated, multi-tower deals
  • AI/digital space expected to be largest growth driver in FY27