Hinduja Global Solutions Limited (HGS) Q3 FY2026 Earnings Call Transcript & Summary

Good evening, ladies and gentlemen. A very warm welcome to the Q3 and 9 months FY '26 Earnings Call of Hinduja Global Solutions Limited. From the senior management, we have with us today Mr. Venkatesh Korla, Global Chief Executive Officer, HGS; Mr. Vynsley Fernandes, Whole-Time Director, HGS, and CEO of NXTDIGITAL Media Businesses; and Mr. Mahesh Kumar Nutalapati, Global Chief Financial Officer. [Operator Instructions] Please note this conference is being recorded. I now hand the conference over to Mr. Anand Venugopal from Adfactors PR. Thank you, and over to you, sir.

Thank you, Steve. Good evening, everyone. We welcome you to the Q3 and 9M FY 2026 Earnings Call of Hinduja Global Solutions Limited. Before we begin, I would like to highlight that some of the statements made during today's call may be forward-looking in nature. These statements involve risks and uncertainties, including those related to the company's future financial and operational performance. Additionally, in the unlikely event of a call drop during the conference, we will ensure the call is reconnected at the early. I now invite Venkatesh sir to deliver the opening remarks. Over to you, sir.

Good evening, everyone. Thank you for joining us. I'm Venkatesh Korla, Global CEO of HGS. I want to make sure that you're all able to hear me okay. Before I walk you through my presentation in detail, I would like to emphasize that, as an organization, we are currently in a transformation phase. Our focus today is on staying disciplined on execution, prioritizing profitability and delivery rigor, while continuing to aggressively invest in capabilities that we believe will translate into stronger growth and drive agility within the organization. Let me start with the numbers on this slide, which is on Slide 4. For Q3 FY 2026, total income of HGS was INR 1,192.2 crores. Operating revenue was INR 1,075.4 crores. And the total EBITDA was INR 133.7 crores. EBITDA margins from the quarter stood at 11.2%. For the 9 months of FY '26, total income stood at INR 3,602.4 crores. Operating revenue was INR 3,222.7 crores. And the total EBITDA was INR 451.4 crores. EBITDA margins for the 9 months period stood at 12.5%. Two quick takeaways from this information. While revenue has been a little muted, we have stayed focused on execution and better margins. We are balancing near-term delivery discipline with continued investment in solutions and AI-led work that strengthens competitiveness. And to that factor, we are staying very agile as a company, as we add new capabilities and new solutions to support the transformation that's going on in the world around us. Now, on the Slide 5, which is management commentary. On the market environment, what we are seeing remains consistent with what many enterprises are signaling in a subdued macro environment and elongated decision cycles, especially for larger deals. We are seeing a lot of proof of concepts moving into pilots, people testing waters. And we believe this coming year is a year where there will be a lot of activity in moving from pilots to actual enterprise-grade implementations. During the quarter, volume ramp-downs in a couple of large accounts also moderated overall revenue growth. And this was largely due to diversification -- vendor diversification from these customers and some in-house shifts where they wanted to bring some things in-house. Important to note, the impact is account-specific rather than structural or any fundamental changes in our business. Given this operating context, our near-term priority is clear: margin expansion over top line acceleration. We want to focus heavily on margin expansion. And this is being done through productivity, delivery rigor and disciplined cost management, and applying automation internally to drive transparency and agility. We are not trying to overinterpret the performance. We are staying practical, control what we can control, keep execution tight and keep the funnel moving. Moving on to the next slide, growth drivers and AI momentum. Let me shift to what is encouraging for us for the future, signaling signings and solution momentum. In quarter 3, we added 21 new logos in digital operations and technology services, which is one of our best quarters for new signings. These wins are expected to support growth in the next fiscal, as they move from early stages into scale to delivery. It typically takes 1, 1.5 years to get the scale and the full potential of the customer, revenue that we need to get from those customers, and establish trust with them. And this amount of new logos that we have signed is going to dramatically improve our future growth potential. Our sales pipeline remains strong, led by digital operations and tech services. We are seeing traction in new verticals like education and public sector interest in Canada. We are also seeing a growing client appetite for AI-infused solutions across customer experience, in BFSI, health care operations and back-office transformation. What's changing is not just interest, it's the nature of engagement as well. There's an increasing shift from AI proof of concepts to proof of value pilots, and we are currently running multiple programs spanning automation, agentic AI, agent assist and generative AI-based solutions that are focused on measurable outcomes. Finally, we are looking at HGS Agent X as our default delivery platform. The intent is very simple: every new customer experience opportunity should leverage one or more capabilities of HGS Agent X so that we can standardize delivery and compound learning across programs, which should also deliver increased margins for us and better value for our customers. Next, I'm on HGS Accelerated - Solutions & Partnerships. With that context, let me share a quick view of how we are accelerating solutions and partnerships. We are focused on leveraging the Agent X framework to build repeatable solution assets. We have developed 8 new solutions across BFSI, health care, retail and consumer products and goods, including AMLens, which is Anti-Money Laundering Lens, Interaction Intelligence, Healthcare Case Worker, and there are more under development. We are also leaning into co-innovation with our clients with 4 co-innovation programs in progress. The point here is to move faster from a good idea to a usable, referenceable solution that then we can have other customers sign up for. Our global partnerships and solutions team is focused on embedding intelligent experience principles into client engagements, making the work more outcome-led and more repeatable. And we continue to explore partnership opportunities. We are not looking at doing partnerships for the just simple sake of doing partnerships. We are doing partnerships to drive strategic value. We are one of the select few vendors globally to achieve Microsoft's Fabric Featured Partner status, as an example. On HGS Agent X, the platform is now structured as a 15-module framework with 21 AI assistants, already supporting 4.5 million minutes of voice interactions and close to 3 million minutes of digital interactions. Finally, we are deliberately targeting mid-market clients with verticalized solutions and AI, where packaged faster-to-value offerings matter. One of the other solutions that has seen significant success is HGS Interaction Intelligence, which is the next slide, is an AI-powered customer engagement solution. Let me spend some time talking about these 2 solutions, Interaction Intelligence and AMLens, which we recently launched. HGS Interaction Intelligence addresses a very practical set of operational pain points on the problem side: this manual QA, which is time-consuming and can miss trends; feedback that is delayed; and teams that lack real-time insights, including around compliance to better drive decisions within [indiscernible] environments. The solution is designed to make quality and coaching more continuous and data-led. It provides custom dashboards for sales, QA training and operations metrics, and real-time QA using machine learning and large language models to give instant feedback on interactions. It also offers 80-plus insights, including sentiment, call drivers, topics and pitch analysis, and can auto detect risk, non-compliances, churn signals. And importantly, it's built with enterprise safeguards with personally identifiable information, masking and encryption, with the ability for multi-language support. The outcomes we are driving is straightforward, deeper conversation insights that translate into better business outcomes, faster improvement loops, better compliance posture and stronger customer experience. We have a customer that has adopted, as an example, the Interaction Intelligence, where they have been able to move from reviewing and monitoring 1% of their calls that they receive to 25% of their calls for the same cost, and taking 1 month to receive that 1% of the calls to under 1 day to review 25% of their calls. So this is a significant improvement in agility and creating value for our customers. Similarly, on HGS AMLens, which is built on explainable AI for anti-money laundering investigations. AMLens is focused on accelerating AML investigations with explainable AI, improving speed, accuracy and compliance confidence for financial institutions. It's built around 3 pillars: speed through smart case resolution, accuracy through precision risk detection, and compliance through dashboards and audit trails that keep decisions transparent and reviewed regularly. The results highlighted on the slide are meaningful: 75% reduction in case analysis time, 60% fewer false positives, and 100% traceability of AI-generated decisions. AMLens has won industry recognition for its capabilities from organizations such as [indiscernible] awards and BIG Innovation Awards. Stepping back, the common thread across these solutions reflects how we think about intelligent experiences, or IX, in practice. In our experience, many AI initiatives stall not because the technology isn't powerful, but because teams lead with technology first, launching proof of concepts and pilots without redesigning the underlying process or linking intelligence to execution. At HGS, with our extensive capability in process management, our focus is on intelligent experiences, not AI as a front-end layer. Instead, intelligent experience is all about connecting context, data and fulfillment. So the experience continues even after the interaction ends, where there's proactive -- whether it is proactive airline rebooking or guiding patients through health care journeys with timely contextual messages, the emphasis is on anticipation and follow-through. This is why we are not pursuing AI for experimentation. We are productizing capabilities that improve outcomes consistently, be it shorter cycle times, higher quality, stronger compliance or better outcomes and agent experiences with the right guardrails in place. From an IX standpoint, that means embedding intelligence directly into workflows, combining AI, data and human judgment in ways that are observable, explainable, scalable and ethical. It's a very disciplined approach that helps clients move beyond proof of concepts into proof of value with measurable impact on operations and experience. You'll be hearing more about our IX journey as we progress through the rest of our journey in the next few months. I want to also emphasize that this creates value both for us from a margin standpoint and value for our customers by improving their agility, their value per dollar spent, as well as the accuracy and personalized interactions that they provide to their customers. With that, I'll now hand it over to my colleague, Vyns, to talk about the media business. Vyns, please go ahead.

Yes. Thanks, Venk. Good evening, everyone. I hope Tanuja or someone, can you all confirm that you all can hear me loud and clear, please?

Yes, sir. You're loud and clear.

Yes. Thank you. I apologize for my audio. I am traveling. And in case if it does drop, I know I'll get connected again. So good evening, everyone, and thank you for taking time off on a Friday evening to -- for us to share with you our performance in Q3 and where we are going from here. I'm on Slide 11 right now, which is the management commentary on the Digital Media Business of the group. As you know, broadband is -- has been for a while now our sunrise sector, and we're continuing to push it. If you recall, in the last couple of calls that we did investor calls, we mentioned about key initiative strategies that we are taking to generate positive traction, and we are happy to announce that those initiatives have been able to garner positive traction, as well as the enterprise business, which is CelerityX, have been key wins in Q3. So broadband vertical remains firmly on the growth path, and that is clearly a journey that has only just begun with the fact that broadband becoming a critical component in everyone's life, whether it's retail, enterprise, small, medium, large enterprises. So CelerityX, as I mentioned, has added prestigious logos in Q3. On the DTV front, that's digital television, where we are the largest independent cable platform with our Headend-In-The-Sky platform, NXTDIGITAL, we've continued -- rather than bow our heads down and look at the fact that the industry is going through a transformation, we are focusing on how to retain subscribers by coming out with innovative products and innovative solutions. And we're also looking at cost optimization in a big way to ensure that the business is on the right track. And that is reflected actually in the 3A strategy that we are working on. My colleague, Venk, spoke about the incredible initiatives that HGS is renowned for now globally in terms of artificial intelligence. And we've looked to couple the 3As at the media group and focus on them. While we've been doing it for a while, we've looked to focus on them more in this calendar year and -- as well as in the fiscal year ahead as well, which is analytics, automation and artificial intelligence. With that, I'm going to go to Slide #12. If you all can move to Slide #12? Slide #12 essentially is to give you all an update on CelerityX. As I mentioned, we are quite delighted with the way the enterprise business where we've leveraged all our installed capacity. So 5 new logos, prestigious logos, as you can see, have been onboarded during Q3. And I think the most important thing that the business has done is that the enterprise sales capability of the team of making a transition from being a retail company -- as you all know, OneOTT Intertainment Limited, the broadband vertical, was essentially a retail company. And to be able to make a significant transition from retail to enterprise takes a lot of components. And we've been able to prove that enterprise sales capability that has been validated now across government, public sector undertaking and private sector clients. And therefore, now, from Q4 onwards, after we focused on volume, the business is now migrating from volume to value. Each customer that we have, we're looking -- and already, we're tripling our revenue per customer from the existing customer base. So, that is our definition of volume to value migration. Rather than pursuing -- actively pursuing new customers, which we are doing, by the way, we're looking at how the existing customers that we have, we can generate greater value out of them by providing them unique services. And that is already being seen. I also mentioned, on the right-hand side, if you look at Mission Bharat, we've been speaking about connecting 100 new towns between Q3 and next year. And we're quite proud that already we've been able to connect 50 new Tier 3 towns. These are towns where connectivity has been a challenge, where people want -- are willing to pay for a strong quality of service. We've already rolled out in about 50 new towns, and we've operationalized them. They've already contributed barely in Q3 in the quarter as we've operationalized them. Already a 25,000 subscriber base has been garnered from these new towns. And obviously, that is only Phase 1. It continues growing as we speak. With that, I'm going to go to KPIs, which is Slide #13. That is -- this is something that, again, I thought will be very important for analysts, investors, well-wishers to know that our business is on the right track, and we're doing the right things that globally are -- that are global benchmarks. If you look at the pie chart on the left, this is where we were in terms of a customer base mix in Q3 of FY '25, and where we are today is on the right-hand side, which is Q3 FY '26. If you look closely, the one key component, which is the lowest end of the spectrum, the 10 to 30 Mbps plan, 28% of our base would come from there. That has shifted to -- barely to 21%, and it's even lowering. What it means is that our customers are migrating to higher packs. It reflects a successful upselling strategy, where we're telling customers -- we're offering them good quality service and offering them higher bandwidth. And obviously, more importantly, it reflects on the fact that customers are happy with the improvement in quality of service because unless you're really happy with the quality of service and you want to be able to continue accessing services, this is where -- this is a great benchmark. So quality of service has improved radically, and obviously, network maturity. And if you look at a key segment, which is the 101 to 200 Mbps, right, that has also matured from about 6% to 9%. So overall, we're continuing to push and migrate customers and shifting them towards a premium customer mix. What it also does is, it allows us to look at ARPU growth in the future from the existing base because rather than pursuing new customers -- the cost of acquiring a new customer is significantly higher than offering additional services to existing customers like IPTV or OTT. So that's what we're focusing on, which is the ARPU expansion for future growth. With that, I have some KPIs on Slide 14. So I'm going to take you to Slide 14, if you all can see it. The title says, Media Business Q3 Key Performance Indicators. So again, this is something that we share -- it's something that we track literally on a daily basis and not just a weekly or monthly or quarterly basis. And on the left, where the titles are highlighted in blue, is the media business, right? If you look at the churn, which is losing customers, which in the industry is significantly high, we've been able to ensure that it's sub-2% per month. This is a significant reflection of what the company is doing to ensure that we deal with the headwinds that are facing the entire linear television industry, not just NXTDIGITAL, but the entire industry, whether it is cable television, whether it is Headend-In-The-Sky platforms, whether it is DTH or any other service, linear service. So we've been able to control the churn. And more importantly, we've been able to retain and maintain the average revenue per user, which is in the lower block, if you can see, which was about INR 122 last year per customer, which is now at INR 122 still this year. Broadband is a strong success story, which is the orange boxes highlighted. This is a strong story, and we're quite proud of that. I'll go to the second block, second column, the lower block, which says franchisee 90-day churn. Huge aspect of pride because the industry is close to anywhere between 3% to 4% per month, and we've been able to bring that down significantly in Q3, which again kind of reflects what I was saying in the previous slide, improved quality of service and network maturity. And that reflects very strongly in these numbers. The revenue mix, we've been able to continuously -- I remember in the first call, I mentioned that one of the strategies will be to reduce our dependence on strategic alliance partners, or SAP, and focus more on organic enterprise business. And if you look at it, we're talking about 46% of the business now comes from organic and enterprise. And enterprise alone now adds -- contributes about 14%. The right-hand side block, which is subscriber mix by plan, again, as you can see, a very important factor for us, which again reflects network maturity and improved quality of service. More than 32% of our subscriber base now opts for a long-duration pack or a long-duration recharge, which is a minimum of 3 months. So this is something that we're quite -- again, it's a huge benchmark and a huge KPI for us, which is having 32%, nearly 1/3 of the base focusing on a 3-month and greater pack. And the team, the sales teams, the operations teams, their targets are to keep on reducing the less than 3 months subscriber mix and increase the greater than 3 months. Another advantage that we focused on -- and again, we like to work under the radar. We've been focusing very quietly on improving our efficiency, operational efficiency, our performance, and therefore, our bottom line. This is reflected in the bulk bandwidth -- the bandwidth cost, which, as a percentage of revenues, generally is anywhere between 38% to 40% or even higher. We've been able to bring that down to 35% in this quarter, and that is again a reflection of where we are. At this point in time, we believe as an organization, we need to inherit and bide what my colleague, Venk, was saying, and we've been already there very actively in the 3A space, which is how HGS [indiscernible] have been able -- how the BPM business and the media business have been strongly integrated. And this is a reflection of what we are currently doing. We've been doing it for a while, but obviously, we've not been talking about it. But I thought that today, let me explain how we're using 3As as a business accelerator, right? The entire industry is changing. I'm sure each one of you -- no one needs to be told the fact that everyone has moved to online -- not everyone, a lot of people are moving to online. Today, the mobile becomes the center of communications. People look at IPTV, OTT. Technology is changing. There will be broadband over satellite. There will be broadband -- there will be digital to devices as well, which will come in the future, direct-to-device services in future. So how are we ensuring as an organization that we are able to manage this effectively, right? We have focused and said, to be able to lead in this environment, we want to be different. We want to continue to innovate, and we want to ensure that the customers remain at the center of our business. And therefore, we focused on artificial intelligence, analytics and automation. And I'll be very brief because I'd like to -- rather than talking about it, I'd like to -- at the end of the next quarter, I'd like to demonstrate how we've applied it. But just to give you all a sense, because I'm sure that will be interesting for everyone, in terms of artificial intelligence, our technology teams are already working on a very interesting thing, which is self-healing networks. How a network, when it faces a problem, when it faces a fiber cut, how does it self-heal? How does it move to a better path? How does it move to a redundant path? How does it recognize the need for customers' urgency like during business hours? So, that is one of the aspects of artificial intelligence. And obviously, demand forecasting becomes a critical aspect there. That is from a customer perspective. From our own business perspective, we are looking at how can we create smarter recommendations for customers? When you have cricket matches around the corner, how can you help customers do a surge in the bandwidth that they want, right? How can you provide multiproduct service menus for them? All of it's focused on improving customer experience because at the end of the day, the customer today will not hesitate to jump ship if he is not happy -- if he or she is not happy with the quality of service. And we're looking at AI playing that critical role. From an automation perspective, which is the second column on Page 15, there is no question about it, we are looking at frictionless engagements. Customers want to be able to have workflows that are online, that are able to be accessed. While we already have them in place -- it's not like we don't have them. We've already implemented them early, as well as with -- under the bigger HGS umbrella, we have looked to implement it. This is taking it to a next level altogether, the automation. And last but not the least is analytics. We collect loads of data. We've got close to 5 million homes that we connect to. And if you look at a typical framework, you're talking about 5 million homes, so you're talking about close to 25 million people probably that could have potential access to a service. Our idea is how can we do deep segmentation? And when I talk about deep segmentation, we're looking at, for example, rural markets. Rural markets may require surge in connectivity probably in the morning and late evening, and probably sometime in the afternoon but not during the day, while cities would require connectivity during the day for enterprises and probably lower surge in the morning. So we're working on deep segmentation. The teams -- we have a team -- as you know, we've invested significantly in teams over the last year or so. So, that is going to obviously lead us to operational analytics, where we're able to track service quality. Today, we track multiple parameters in terms of service quality, all of this that we've defined over the last 12 to 18 to actually 24 months. And effectively, now, we're looking at how can we take that level of dashboards and now make it hyper local? How can I track in a suburb of Mumbai? How can I track in a rural market, which is limited to 800 homes? So all of this, we're looking at putting together and build. So like I said, there is a clear business accelerator for us on the basis of where we are today. And we're quite proud of the way things have been going. And are we facing headwinds? Obviously. This industry is continuing to face headwinds. I'm talking about the digital television industry. But coupled with the broadband business, coupled with the innovations in enterprise, coupled with the fact that the DTV customer is your prime customer for broadband, we believe that we're on the right track to take this business ahead. Thank you very much for listening to me patiently on this. With that, I am going to hand over to my colleague, Mahesh Kumar, who is our Global CFO. Thank you again for listening patiently. Mahesh, may I hand over to you? Thank you.

Thank you, Vyns. I hope I'm audible.

Yes, sir. Thank you.

Okay. Thank you. Good evening, everyone. I will walk you all through our financial performance for third quarter and 9 months ended December 31, 2025. But before getting into numbers, let me spend a couple of minutes to set the context for the quarter. This has been a period of focus change for us with an emphasis on disciplined execution and clear priorities. Our approach this quarter was to ensure stability in the business in this volatile macroeconomic environment. And as earlier highlighted, this was more of a softer quarter from a top line perspective, driven largely by some account-specific volume ramp-downs and elongated client addition cycles, particularly in a few large engagements. Importantly, these impacts, just to reiterate that they are tactical and client-specific in nature rather than any structural ones. And we continue to see healthy new client additions and strong pipeline, as mentioned by Venk earlier about the new logos that we have won during the quarter. From a margins perspective, from a profitability standpoint, our focus this year has been margin resilience and discipline, along with building pipelines. Sequential margin moderation in Q3, which I will be talking over when I go to the financial presentations, this reflects the temporary volume softness and onetime impact of cost optimization initiatives that we have undertaken during this period, which though partially get offset by productivity improvements and delivery optimization. And as we progress, once the volume normalizes and cost control initiatives start showing benefits, we expect operating leverage to play out more meaningfully. So with setting the context, let me get into the details of third quarter and 9 months ended 31st December 2025. I am on Slide 17. Revenue for the quarter stood at INR 1,075.4 crores, moderated by around 1.4% as compared to the previous quarter and marginally better by 1.1% year-on-year basis. In the current quarter, depreciation expenses are at INR 123.2 crores as compared to INR 118.2 crores sequentially. And on a year-on-year basis, depreciation has dropped from INR 137.5 crores to INR 123.2 crores. We recorded a onetime impact of INR 4.5 crores during the quarter, arising from the implementation of India's new labor codes, reflecting statutory employee benefit adjustments, and has been presented as exceptional item in the financial statements. We expect the ongoing impact to be limited with no change to our long-term margin and growth outlook. Profit before taxes for the quarter is at negative INR 41 crores as compared to INR 14.1 crores in the previous quarter and a profit of INR 41.3 crores in the corresponding period of previous year. Taxes for the quarter are at INR 15.1 crores as against INR 12.9 crores in the previous quarter, as against INR 49.9 crores in the corresponding period of the previous year. During the quarter, we have profits from discontinued operations of INR 90.5 crores net of taxes, as mentioned in our notes to publication page. Through transfer and assignment agreement, company has assigned its third-party liability without recourse for a consideration of USD 8.965 million and correspondingly recognized a gain of USD 8.9 million. This assignment liability relates to a period prior to sale of Healthcare Services business, which was consummated on Jan 5, 2022 and is being clearly identifiable to the business being discontinued and in line with what is disclosed as discontinued operations, including net of taxes. Total PAT for the current quarter, including both continued and discontinued operations, is at INR 34.4 crores as compared to negative of INR 27 crores in the previous quarter and a negative of INR 8.6 crores on a year-on-year basis. Total EBITDA at INR 133.7 crores is down by around 170 basis points sequentially and 780 basis points year-on-year basis. Moving on to Slide 18, which shows details of 9 months ending 31st December ' 25 and a comparative period of 31st December '24. Revenue from operations stood at INR 3,222.7 crores versus INR 3,243.1 crores, a marginal drop of 0.6%. As explained in the quarterly -- in the quarterly numbers, after considering exceptional item impact of INR 4.5 crores on the new labor code, PBT is at negative INR 81.6 crores as compared to INR 43.6 crores of the earlier period. Taxes for the 9 months period is at INR 47.9 crores as compared to INR 72.5 crores in the similar period last year. PAT from discontinued operations for the 9 months period is INR 148 crores as against INR 218 crores in the corresponding period of earlier financial year. Total PAT after considering continued and discontinued operations is INR 18.5 crores as compared to INR 102.4 crores of the corresponding period. Total EBITDA is at INR 451.4 crores as against INR 532.6 crores in the corresponding period. Moving on to Slide 19, which is our balance sheet. Our balance sheet remains strong with a net worth of INR 8,206.5 crores. We continue to operate with healthy liquidity, disciplined capital allocation and stable working capital metrics. The gross treasury balance is around INR 6,429 crores against a debt of INR 1,202 crores, with a net treasury balance of around INR 5,227 crores. Moving on to next slide, which is Slide #20. Left side of the chart shows the revenue by source, wherein CX operations constitutes 55% of our total revenue and digital and media services accounts for 45%. The right side shows split by vertical. Tech, media and telecom continued to be our largest vertical, accounting for 50% of total revenue; CG and retail at 16%; BFSI at 18%; health and life sciences and others accounts for 7%. And public sector revenue remained stable, primarily from U.K. and Canada, which are mainly consistent with prior quarters. Moving on to the next slide, which is Slide #21. This is revenue composition by origination. For the quarter, India accounted for around 38% of the total revenue, which is originated from India; U.S., 28%; U.K., 14%; Canada, Australia and others adding up to 20%. And the right side shows from a delivery standpoint. 42% of the total delivery was accounted from India. Between U.S. and Canada, it's around 26%. Philippines accounting for 14%, while U.K. and others accounts for 17%. Moving on to Slide 22. Client concentration chart shows well diversification of our customer base to minimize any single customer risk. Our top customer accounts for 6.4%, whereas top 5 customers account for around 18.8% and top 10 customers represent 28.4% DSO levels remain well controlled, reflecting tight collection disciplines despite the macro environment, and we continue to fund growth initiatives, primarily through [indiscernible] flows. Just to reiterate, I think, a couple of points. One is on AI investments. A key point is that our investments in agentic AI platforms and proprietary solutions are increasingly moving from investment phase to commercialization, I think, as mentioned by Venk and Vyns during their briefings. And there's some near-term margin absorption as well, as we scale these capabilities. We are seeing early revenue traction and strong client pull, which gives us confidence in near and medium-term margin accretion rather than dilution. Looking ahead, we remain cautiously optimistic, while macro uncertainty and client prudence may persist in the near term. Our pipeline quality, AI-led differentiation and disciplined financial execution position us well for the gradual improvement in growth and margins. Our priority remains sustainable profitable growth with continued focus on productivity, cost [ containment ] and capital allocation efficiencies. With that, I will hand it over back to moderator. Thank you.

[Operator Instructions] First question comes from the line of Prisha Shah with Family Office.

I have a couple of questions, first being, can you share measurable productivity or margin improvements, driven by the AI-infused delivery so far that you mentioned?

Sure. I will take the question. We have seen essentially, if it is a delivery location that is already onshore, meaning if the delivery location itself is in one of the sourcing markets like the U.S. or Canada or U.K., especially in the U.S. and Canada, we have been able to see a margin improvement somewhere of 15% to 20% in improvement of margins. And that is -- if the delivery is being done out of offshore, we are seeing more of a 10% or so margin improvement. Hope that answers your question.

Understood. So I have one follow-up question regarding the same. So Interaction Intelligence also promises real-time QA with 80-plus insights. So how are clients responding to this outcome-based pricing, which is linked to these -- the new AI tools?

We are seeing demand. There's a lot of talk about outcome-based pricing. But at the end of the day, when it gets to actually procurement, not every customer is ready to sign up for outcome-based pricing. For example, the Interaction Intelligence solution is being charged more to the customers based on the number of transactions, meaning, in this particular case, it is based on number of call minutes processed through the system. We are seeing traction, but it's still in the early stages.

Just one more question, sir. So AML Lens, which claims like around 75% of reduction in case analysis time and around 60% fewer false positives, so are you seeing some strong BFSI adoption over here? And could this become a scalable size SaaS-style offering in the future?

So we are not looking at it as a SaaS offering. We are -- meaning Software as a Service. But we're looking at it more as service as software or process as a service, right? So this will include both the software and the anti-money laundering investigators itself packaged together to execute a process for the customers. We have won awards. We have a few customers who have adopted it, and we're seeing success where the customers are seeing significant value. Now, the question that we all have to test the market and see and we believe is that there will be a significant demand in the banking sector for the solution.

The next question comes from the line of Shruti Sharma.

So, a couple of questions. You added 21 new digital operations and tech service logos in Q3, which has been the strongest signing quarter. How do this win support '27 acceleration?

So I don't want to truly give a forward-looking view, but I can give you a general view of how we expect things to pan out, or based on history, right? So any technology services clients typically -- or digital operations clients start off with a very small project, where we need to establish trust and we need to establish proof of value for the customer. And typically, that grows significantly. And with those existing projects from those customers, the win rate grows up also, almost doubles compared to when you win the first project, and the time to close accelerates as well. So over the next 2 years, we expect these customers to yield significantly more revenue than what they start off with. So this should add to our growth and support our growth initiatives for the next fiscal year.

That's great, sir. And secondly, digital and media service now contributes around 45% of operating revenue. So how do you see this mix evolving over the next 2 to 3 years?

Mahesh, do you want to take that question?

Okay. Yes.

Yes, Vyns. I mean, as I mentioned -- Vyns, you want to take that up? And then, I can pitch in from an overall perspective.

No, Mahesh, go on. No, Mahesh, go on. Why don't you explain from an overall perspective? I think that will be better.

Sure. So, as I explained from our outlook perspective, we are definitely looking at change in the revenue mix. And one of the key levers that we are pursuing is from a digital perspective. So AI-led differentiation is one thing that we are definitely looking at. So what we are looking from a change in the mix is the current 55% that -- 45% that is constituting from media and digital sphere. Eventually, we can look at increasing from -- on an average, 5% to 10% growth we can see. But I mean, this is not sort of a forward-looking guidance, but this is where we are seeing from the new logos that's coming in. That's how the mix is going to evolve, but not from a periodic certainty, but definitely, this is the direction that it will lead to.

Got it, sir. Got it. And lastly, sir, could you -- like with a strong traction in Canada public sector and education, is the client base structurally diversifying?

Yes. The client base is structurally diversifying. We are having -- see, in the past, historically, we -- our public sector customers were primarily from the U.K. We are now gaining significant public sector clients in Canada. And as we are proving value in Canada, we're starting to see a more diversification of the client base. We are also -- historically, we had a significantly more customer concentration. As indicated by Mahesh, as we're adding these new logos, the customer concentration risk is coming down.

Ms. Shruti, does that answer your question?

Yes.

The next question comes from the line of [ Hina Parekh ], an individual investor.

I have a couple of questions, first one being, Mission Bharat has operationalized 50-plus Tier 3 towns, adding approximately 25,000 subscribers. So could this become a meaningful rural growth engine?

Hina, good to talk to you again. I hope you can hear me, Hina.

Yes, I can hear you.

Yes. So Hina, if you recall, in our strategy presentation that we did at the end of Q2, there's a lot of India that is untapped. And one of our philosophies, not just the philosophy of Hinduja Global Solutions, but the overall Hinduja Group, is digital inclusion. That is why we even launched our Headend-In-The-Sky platform. And if you recall, Headend-In-The-Sky platform, when we launched in 2015, was able to change the way [indiscernible] in Tawang, in Pulwama, in all -- Jang in Arunachal Pradesh, et cetera. We believe that there is a similar -- and a similar opportunity because the Hinduja Group, and obviously, Hinduja Global Solutions, our philosophy is partnership for growth. So we found that there are key entrepreneurs in these small towns that we go to and -- who want to make a difference, who are ready to kind of take on the mantle of becoming a digital service partner. And we believe that this 100-city, 100-town plan can also expand well beyond those 100 towns. So you're absolutely right. It will become a mainstay going forward because keep in mind 2 or 3 things. Number one, these markets have had lower access to connectivity. So obviously, connectivity plays a critical role, number one. Number two, very importantly, they are underserved to a great extent and not necessarily exposed to a high quality of service. So, that makes a huge impact for us to get in there because we provide a very high level of quality of service. And third, most importantly, it becomes part of our overall network like a hub-and-spoke system. So our cost of operation -- and therefore, our margins improve. But our cost of operation doesn't include exponentially as we connect these new towns. So overall, you're absolutely right, Hina. That is going to become a mainstay for us going forward. It also sets the base to do what we did in our digital television business many years ago. So overall, we are on that track, completely in sync with what you just said. I hope that answers your question, Hina.

Yes, definitely. Great. One last question. If you look 3 years ahead, what does the scaled HGS look like in terms of revenue mix, margins, AI contribution, anything on that?

Mahesh, would you like to...

Yes. Vyns, I'm taking the question. So, as we look -- so first of all, again, I don't want to make a forward-looking statement. But from a strategic direction standpoint, what we are driving towards is an AI-led digital operations company. We will continue to deliver intelligent experiences, which are essentially AI-supported interactions, which are contextual, which are personalized, and then, post the interaction, support proactive operations, which we call as intelligent operations. So we look to HGS as being one of the companies that provides support to our client base to make them more efficient, more effective and more personalized to their consumers. And this is through using AI to drive context, using AI to support our team members to deliver the best possible interaction, as well as follow-on fulfillment that's proactive in nature. That is how we see the future going. And we expect that a significant portion of our business [indiscernible] and supported with AI and people working together in the future.

The next question comes from the line of [ Harshil Patil ], an individual investor.

Just I have a few questions. With productive and delivery rigor being emphasized, can you share the early indicators of operating leverage as volumes ramp?

Could you repeat the question, please, Harshil? Sorry.

Sure. With productive and delivery rigor being emphasized, can you share the early indicators of operating leverage as volume ramp?

Sure. So what we're noticing is that we are able to reduce the -- especially in the contact centers and the CX space, as we are doing volume ramps, what we are seeing is that the amount of time it takes to hire, train and deploy a resource from the time of onboarding to time of on-the-job training to actual productivity, we have seen almost a 30%, 40% reduction in the time it takes to make that happen, which directly translates into margin improvements. The second part that we are noticing is, the amount -- the ratios -- the management ratios, especially related to team leaders and managers who are spending time overseeing and managing the teams that are performing these customer interactions are -- the spans remain to be the same or improving slightly, but the team leaders and managers are able to spend more time doing coaching and supporting the staff, which is driving higher quality of service and better productivity. The third aspect that I want to point out that we are seeing is, post being productive, once an individual is -- finished the on-the-job training is productive, we are able to continuously do micro-training and coaching almost on a real-time basis using our Interaction Intelligence capability, where we are able to get feedback on the quality of the call because we are able to have AI listen to more of the conversations, capture more information, get subjective information that helps our managers to coach their teams better. So overall, this is not only improving productivity, it's also improving quality of service also at the end of the day. I hope that answered your question.

Yes, sure. Okay. Also, you mentioned the elongated decision cycles in the large deals. Are you seeing like early signs of recovery as we approach FY '27?

I think the elongated cycles continue to exist. We are not seeing a dramatic change in that space. I mean, from a HGS standpoint, we are seeing some changes because with the new customers that we have acquired, as they build trust with us, they're improving -- the decision cycles are improving a little bit, that's more because of, I believe, the trust that we are establishing with our customers and the value we are providing. But in general, because of the uncertainty in the macro environment of -- the macroeconomic environment globally, as well as fatigue on the amount of technology innovation that is happening, to some degree, or the -- I call it the next shiny object syndrome, right? People get worried about the next shiny object, and they almost get into indecision. I think that's continuing to exist. And I think we'll continue to see that for at least another one more year until things start improving.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for their closing comments.

Thank you, everyone, for...

Venk, why don't you go ahead?

Yes. Thank you, everyone, for joining the call. Truly appreciate you taking the time on a Friday evening and spending time with us, listening to our outlook and where we are going as a company and what we have done so far, and appreciate all your support. Enjoy the weekend. To you, Vyns.

Yes, I echo Venk's sentiments and really appreciate because it's always difficult joining in on a weekend, and we truly appreciate that. As Venk pointed out, and relevant questions at the end of this, that as a group, we are all clearly on an upward mobility traction, and we hope to be able to achieve those elements we pointed out. And I'm sure in Q4, we'll be able to report much more. With that, thank you very much. And Mahesh, over to you.

Thanks, Vyns. Thanks, Venk. Thank you, everyone, for taking the time out on a Friday evening and going through our presentations. Thank you, everyone, and have a nice weekend ahead.

Thank you.

Thank you. On behalf of Hinduja Global Solutions Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.