Are Hinduja Global latest results good or bad?

Hinduja Global Solutions' latest financial results for the quarter ending September 2025 reveal a challenging operational environment characterized by significant margin compression and persistent losses. The company reported consolidated net sales of ₹1,091.04 crores, reflecting a modest quarter-on-quarter growth of 3.30%. However, this growth in revenue is overshadowed by a consolidated net loss of ₹19.53 crores, which marks a substantial deterioration compared to the previous quarter.
The operating margin, excluding other income, fell to 2.39%, the lowest level recorded in the past eight quarters, indicating severe operational inefficiencies and competitive pressures. Additionally, the return on equity has turned negative at -1.26%, highlighting challenges in generating adequate returns on capital employed.

The company's financial performance also indicates a struggle with cost management, as employee costs constituted a significant portion of net sales, further exacerbating the margin erosion. Interest costs remained elevated, and the operating profit to interest coverage ratio has declined, suggesting constrained capacity for debt servicing.

On a half-yearly basis, consolidated net sales showed a slight decline of approximately 1.5% compared to the same period last year, pointing to stagnation in revenue growth. The overall financial metrics suggest that the company is grappling with fundamental challenges that hinder its operational effectiveness and profitability.

In light of these results, Hinduja Global Solutions experienced an adjustment in its evaluation, reflecting the ongoing difficulties in its financial performance and operational execution. The outlook remains cautious as the company navigates a competitive landscape marked by pricing pressures and the need for technological transformation.