Hinduja Global Solutions Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Overview

The financial statements and the associated notes to accounts for the financial year ended March 31, 2026 (FY 2026) have been prepared in compliance and the requirements of the Companies Act, 2013 (the Act), and other related and associated guidelines issued by the Securities and Exchange Board of India (SEBI), along with the generally accepted accounting norms, under Indian Accounting Standards (Ind-AS) reporting format, and co-opting all the amendments and revisions from time to time. HGSs management accepts responsibility for the integrity and objectivity of these financial statements as well as for the various other estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect truly and fairly, to capture the form and substance of the transactions and reasonably present your Companys state of affairs, profits and cash flows of the year.

Global Macroeconomic Environment

The global economy demonstrated resilience during 2025 despite persistent geopolitical uncertainties, elevated interest rates in several advanced economies and evolving trade dynamics. However, growth remained moderate compared with the post-pandemic recovery phase as economies adjusted to tighter financial conditions and heightened geopolitical risks. According to the International Monetary Fund (IMF), global economic growth remained broadly stable in 2025, with an average global GDP growth of 3.2%.

Today, the global economy is being shaped by two opposing forces: the disruption caused by the conflict in the Middle East and the growth momentum generated by rapid advances in AI and technology adoption. The IMF projects global growth at 3.0% in 2026 and 3.4% in 2027, reflecting a modest slowdown from recent years but remaining broadly stable overall. It notes that higher energy prices and ongoing geopolitical uncertainty are expected to keep inflation elevated, with global inflation rising to 4.7% in 2026 before easing in 2027. At the same time, countries that are closely integrated into the global technology value chain are benefiting from strong demand linked to AI, semiconductors, and digital infrastructure.

EY opines that the world is moving into a new economic paradigm shaped by supply-side disruptions rather than traditional demand-driven cycles. Its recent report identifies several interconnected challenges, including geopolitical conflicts, energy security concerns, industrial policy shifts, demographic pressures, and trade uncertainty. These factors are increasing the cost of doing business, reducing efficiency, and contributing to persistent inflationary pressures. At the same time, organizations are navigating a more fragmented global landscape marked by diverging regional growth patterns and monetary policies. Despite these headwinds, EY sees opportunity in the accelerating adoption of AI and other productivity-enhancing technologies. Companies that invest in resilience, operational agility, digital transformation, and AI-led productivity improvements are likely to be better positioned to navigate uncertainty and capture growth opportunities in an increasingly complex global environment.

The OECD expects growth to remain uneven across regions, with emerging economies continuing to outperform advanced economies.

One of the defining themes of the global economy during 2025 and 2026 has been the rapid acceleration of Artificial Intelligence adoption. Enterprises across industries have moved beyond experimentation toward scaled implementation of Generative AI, Agentic AI and workflow automation solutions. In fact, global enterprise technology spending continues to demonstrate resilience despite macroeconomic uncertainty. Organizations are prioritizing investments that deliver operational efficiency, revenue enhancement and customer retention.

(Source: IMF World Economic Outlook, OECD Economic Outlook, EY)

ECONOMIES WHERE HGS OPERATES

India

India continues to stand out as one of the worlds fastest- growing major economies, demonstrating resilience amid global economic uncertainty. Strong domestic demand, public infrastructure investments, rapid digital adoption, and favorable demographics have supported robust economic activity. Indias GDP growth is estimated at 7.4% in FY2026, while institutions such as the OECD and Asian Development Bank (ADB) project growth of around 6.3-6.9% over the next two years, keeping the country among the fastest-growing large economies globally.

A key strength of the Indian economy is its broad-based growth. Domestic consumption, which accounts for more than 61% of GDP, continues to be a major growth driver. Easing inflation, lower interest rates, tax relief measures, rising employment, and the expansion of the urban middle class are expected to sustain consumer spending momentum. India also experienced a rare "high-growth, low-inflation" phase in 2025 - The Economic Survey 202526 called it the ‘Goldilocks phase - while unemployment declined and labour force participation improved.

Indias capital markets have remained resilient despite periodic global volatility. Strong participation from domestic investors, coupled with renewed foreign portfolio inflows, has strengthened Indias position as a preferred long-term investment destination. The countrys financial system has also remained robust, supported by improved bank asset quality and healthy liquidity conditions.

The digital economy is emerging as another powerful growth engine. Expanding internet penetration, broadband adoption, UPI-led digital payments, AI and cloud adoption, government-led digitalization, and investments in 5G and fiber infrastructure are accelerating Indias transformation. This is complemented by a highly skilled digital workforce, strong AI capabilities, and more than 1,700 Global Capability Centers (GCCs), reinforcing Indias role as a global hub for innovation, technology services, and high-value exports.

(Source: Economic Survey 2025-26, OECD, Asian Development Bank, Deloitte).

United States

The US economy remained resilient over the past year, supported by strong consumer spending, rising real wages, a robust labor market, and buoyant equity markets. However, this growth was accompanied by considerable uncertainty, including the introduction of broad-based tariffs, mounting fiscal pressures, and persistent concerns around the cost of living.

Looking ahead, economic growth is expected to remain positive but moderate. Key factors shaping the outlook include Federal Reserve interest rate decisions, labor market dynamics, affordability pressures in areas such as healthcare and energy, and the evolving impact of artificial intelligence on productivity and employment.

AI continues to be a major pillar of US economic strength. Significant investment in AI over the past two years has reinforced the countrys leadership in technology and digital platforms, while accelerating productivity growth across industries. AI-related investment is expected to remain an important driver of economic activity through 2026 and beyond.

At the same time, higher energy prices, elevated interest rates, and moderating wage growth are likely to weigh on household purchasing power and consumer spending. Although the US remains the worlds largest oil producer, rising oil prices are expected to have a net negative effect on growth due to their impact on inflation and consumption.

Overall, the US economy is projected to remain on a healthy growth trajectory, with real GDP expected to expand by around 2.0% in 2026 before easing to 1.8% in 2027 as consumer spending normalizes and the pace of AI-driven investment gradually moderates.

(Source: Deloitte, The Conference Board, JP Morgan, Stanford Institute for Economic Policy Research (SIEPR))

Canada

The Canadian economy is gradually recovering after a year of weak growth, though uncertainty remains elevated. Economic activity has been affected by US trade measures, slower population growth and a softer housing market, but growth is now showing signs of improvement.

GDP growth is expected to strengthen through the second half of 2026 and stabilize at around 1.8% in 2027 and 2028, supported by consumer spending, government expenditure, a recovery in exports, and modest improvements in business and residential investment. Inflation rose to 3.2% in May 2026, largely driven by higher oil and gasoline prices following the conflict in the Middle East. However, core inflation remains close to the Banks 2% target, and inflation is expected to ease to about 2.5% later this year and return to target by early 2027.

Canadas business environment continues to be supported by investments in digital transformation, including cloud modernization, cybersecurity, AI and customer experience technologies. Financial services, telecommunications and public sector organizations are accelerating digital initiatives to improve customer engagement, operational efficiency, and regulatory compliance. The broader outlook is also supported by rising AI-related investment globally, which is helping drive productivity growth and innovation.

(Source: Bank of Canada)

United Kingdom

The UK economy has remained resilient but subdued through 2025 and 2026, navigating a challenging environment marked by geopolitical uncertainty, high energy costs, fiscal pressures and weak productivity growth. The economy expanded by 1.3% in 2025 and recorded a stronger-than-expected 0.6% growth in Q1 2026, driven largely by the services sector. However, consumer spending and business investment continue to face headwinds from elevated interest rates, inflationary pressures and economic uncertainty.

The conflict in the Middle East has further complicated the outlook by disrupting global energy supplies and pushing up energy costs. EY recently revised its UK GDP growth forecast for 2026 down to 0.8%, with a modest recovery to 1.2% in 2027. Inflation is expected to exceed 4% by the end of 2026, delaying interest rate cuts and weighing on household spending and business confidence.

Beyond cyclical pressures, the UK faces longer-term structural challenges, including high public debt, rising healthcare and pension costs, regional productivity disparities and energy security concerns. Policymakers are focused on fiscal discipline, productivity-enhancing investments, pension reform, and accelerating the energy transition to reduce exposure to volatile fossil fuel prices.

Overall, while near-term growth is expected to remain modest, continued structural reforms, improved energy resilience and targeted investment in skills, infrastructure and innovation should support a gradual recovery and strengthen the UKs long-term economic competitiveness.

(Source: Office for National Statistics (ONS), OECD, EY, Media)

Philippines

The Philippines economy remained resilient in 2025 and 2026, although growth moderated amid global uncertainty, weaker investment flows and external headwinds. Supported by strong domestic consumption, remittances and a thriving services sector, the country continued to rank among Southeast Asias faster-growing economies.

According to the Philippine Statistics Authority, GDP grew by 2.8% in the first quarter of 2026, with growth driven primarily by wholesale and retail trade, financial services and public administration. The services sector expanded by 4.5%, while household consumption grew by 3.0% and exports increased by 7.8%. At the same time, investment activity weakened, with gross capital formation declining 3.3%, reflecting a more cautious business environment.

A key challenge for the economy has been weaker foreign direct investment (FDI). Rising geopolitical tensions, global trade uncertainty and financial market volatility have dampened investor sentiment, leading to a sharp decline in FDI inflows during 2026. While foreign investors continue to show interest in sectors such as manufacturing, financial services and real estate, overall investment levels remain subdued.

Despite these near-term pressures, the Philippines longterm outlook remains constructive. Continued growth in the services sector, digital infrastructure improvements, a large skilled workforce and the ongoing evolution of its IT- BPM industry toward higher-value digital and AI-enabled services are expected to support economic growth and competitiveness in the years ahead.

(Source: Philippine Statistics Authority, Asian

Development Bank, Media)

Jamaica

Jamaicas economy has faced significant challenges following the devastating impact of Hurricane Melissa in late 2025, which caused an estimated US$12.5 billion in damages and losses, equivalent to about 60% of GDP. After contracting by 0.4% in 2025, the economy is expected to shrink by a further 1.0-1.2% in 2026, with agriculture, tourism, mining and infrastructure among the hardest-hit sectors.

Despite these setbacks, Jamaica has demonstrated resilience. Consumer spending has remained relatively stable, unemployment has risen only modestly from 3.3% to around 3.7%, and confidence in the countrys fiscal management has largely been maintained. However, inflation is expected to increase from 3.9% in 2025 to about 6.3% in 2026, driven by supply disruptions, reconstruction demand and higher energy costs.

The hurricane has delayed progress on debt reduction, with public debt projected to rise to 68.5% of GDP before resuming a gradual decline. Poverty levels are also expected to increase temporarily as households continue to recover from the storms economic impact.

Looking ahead, the outlook remains cautiously optimistic. As reconstruction efforts accelerate and key sectors such as tourism and agriculture recover, economic growth is projected to rebound to an average of around 2.7% in 2027 and 2028. However, risks remain, and Jamaicas recovery will depend on successful rebuilding efforts, fiscal discipline and continued investment in economic resilience.

(Source: World Bank)

Colombia

Colombias economy demonstrated improving momentum during 2025, supported by recovering domestic demand, moderating inflation and strengthening services activity. The countrys services sector remains a major contributor to economic growth.

Colombia continues to strengthen its position as a preferred nearshore destination for customer experience management, multilingual support services and digital operations. Growing investments in technology infrastructure, digital services and business process outsourcing have enhanced the countrys attractiveness for global enterprises seeking Spanish-language support capabilities.

(Source: World Bank, BBVA Research)

Australia

Australias economy remained resilient through 2025 and into 2026, although growth has moderated amid global uncertainty, persistent inflation pressures, and weaker productivity. Economic activity expanded at a modest pace, supported by household consumption, a strong labor market, and easing monetary conditions.

Growth is expected to continue in 2026, but geopolitical tensions, global trade disruptions, volatile energy markets and uncertainty surrounding the Al-driven investment cycle present significant downside risks. Weak productivity growth remains one of Australias most pressing longterm economic challenges.

Inflation has gradually eased from post-pandemic highs, allowing the Reserve Bank of Australia to begin a cautious monetary easing cycle. Lower interest rates are expected to support consumer spending, business activity and investment, although inflation remains a key policy concern. The labor market has softened somewhat from its post-pandemic strength but continues to provide an important foundation for economic stability.

Australia is transitioning toward more sustainable growth, with inflation expected to stabilize within the target range. However, structural challenges persist, including slow productivity growth, housing affordability pressures, and the need to strengthen long-term competitiveness and energy resilience. The OECD highlights the importance of fiscal discipline, tax system efficiency, housing supply reforms and competition-enhancing measures to support future growth.

Australias digital economy and technology investments continue to be important growth drivers, while sectors such as agriculture, mining, financial services and telecommunications remain key contributors to economic activity. Overall, the outlook is one of moderate but steady growth, supported by easing inflation and policy support, although external shocks, energy price volatility and global economic uncertainty remain significant risks.

(Source: Reserve Bank of Australia, The Melbourne Institute of Applied Economic and Social Research, OECD)

INDUSTRY OVERVIEW

GLOBAL IT & BUSINESS PROCESS MANAGEMENT INDUSTRY

The global technology services and Business Process Management (BPM) industry continued to evolve rapidly during 2025 and 2026, and posted a resilient performance despite a challenging macroeconomic environment marked by geopolitical tensions, trade uncertainties and uneven economic growth. Enterprise technology spending remained robust as organizations prioritized investments that improve productivity, strengthen resilience and accelerate business transformation.

AI has emerged as a key catalyst for technology spending. Organizations are increasingly focused on integrating AI into core business operations, customer engagement, decision-making and workflow automation to generate measurable business outcomes. As a result, demand is increasingly shifting from standalone technology adoption toward end-to-end transformation programs that combine AI, cloud, data, cybersecurity and process redesign.

According to Gartner, worldwide IT spending is projected to reach approximately US$6.15 trillion in 2026, driven by growth in software, IT services, cloud infrastructure and AI-related investments. Spending on AI infrastructure, data center systems and AI-enabled software continues to accelerate as enterprises scale production deployments and modernize technology environments.

Cloud modernization remains a strategic priority across industries. Organizations continue to migrate applications and workloads to cloud-native environments, modernize data architectures and strengthen cybersecurity capabilities to support increasingly digital operations.

The BPM industry is simultaneously undergoing a structural transformation. Traditional outsourcing models are evolving toward Digital Operations, AI-enabled managed services and outcome-based engagements. Analytics- driven insights, automation and AI-enabled workflows are becoming central to modern service delivery models. Customer service functions remain among the fastest adopters of AI-enabled technologies. Conversational AI, intelligent automation, agent-assist solutions and predictive analytics are helping organizations improve customer experience, enhance productivity and reduce operational complexity.

These industry shifts create significant opportunities for providers that can combine consulting, technology implementation, operational execution and domain expertise to support enterprise-wide transformation initiatives.

(Source: Gartner, media and industry reports)

INDIAN IT-BPM INDUSTRY

India continued to strengthen its position as a global technology and business services powerhouse during FY2026, supported by its deep talent pool, expanding digital capabilities, growing Global Capability Center (GCC) ecosystem and increasing enterprise investments in artificial intelligence (AI)-led transformation.

According to the NASSCOM Strategic Review 2026, the Indian technology industry crossed the US$300 billion milestone, demonstrating resilience despite global macroeconomic uncertainties. Growth was driven by sustained demand for AI, cloud, cybersecurity, engineering and R&D services, digital engineering, data modernization and enterprise transformation programs. India also reinforced its leadership as the worlds preferred sourcing destination, supported by a rapidly expanding innovation ecosystem and strong digital skills base.

A defining trend across the industry has been the transition from digital transformation to AI-led transformation. Enterprises are moving beyond AI experimentation and pilot programs toward large-scale deployment of generative AI, agentic AI and intelligent automation. Technology investments are increasingly focused on improving productivity, enhancing decision-making, modernizing operations and delivering measurable business outcomes. As a result, organizations are seeking partners capable of integrating AI, analytics, cloud technologies and operational expertise into business processes at scale.

The Indian BPM industry is undergoing one of the most significant transformations in its history, evolving beyond traditional process outsourcing toward intelligence-led, outcome-driven services. According to the NASSCOM Strategic Review 2026, AI, analytics and industry- specific platforms are fundamentally reshaping the way enterprises design, manage and optimize business operations. The industrys value proposition is increasingly shifting from labor arbitrage to "intelligence arbitrage", where competitive advantage is created through data, predictive insights, analytics and decision support rather than transaction processing alone.

BPM providers are embedding AI-powered analytics, automation and domain expertise into enterprise workflows, helping clients improve operational performance, anticipate risks and accelerate decision making. The industry is also witnessing the emergence of a gentic AI-powered service platforms capable of autonomously executing complex workflows such as customer on boarding, claims management, compliance processes and customer support operations. These platforms combine AI, business context and human oversight to improve efficiency, accuracy and scalability while delivering measurable business outcomes. At the same time, providers are investing in industry-specific AI models and micro-vertical solutions across sectors such as healthcare, insurance, banking, financial services and risk management, enabling greater process accuracy, compliance and business relevance. The sector is also moving toward hybrid commercial models that blend operational delivery with outcome-linked performance measures, aligning service providers more closely with client business objectives.

Customer Experience (CX) remains one of the fastest- evolving segments within the BPM and digital services landscape. Organizations increasingly recognize customer experience as a critical driver of customer loyalty, revenue growth and competitive differentiation. The rapid adoption of AI, automation, analytics and cloud-based engagement platforms is transforming how enterprises interact with customers, employees and partners. Businesses are investing in technologies that enable faster issue resolution, personalized interactions, proactive engagement and seamless omnichannel experiences across voice, chat, email, social media and self-service channels.

AI has become central to modern CX strategies. Enterprises are deploying conversational AI, virtual assistants, intelligent knowledge systems and agent- assist solutions to improve both customer and employee experiences. The emergence of agentic AI is further enabling more autonomous workflow execution, intelligent case management and end-to-end service orchestration. As customer expectations continue to rise, organizations are increasingly evaluating service providers based on business outcomes such as customer satisfaction, retention, operational efficiency and revenue growth rather than traditional transactional metrics. A broader experience-led approach is also emerging, integrating customer experience (CX), employee experience (EX) and user experience (UX) to create more cohesive and effective engagement ecosystems.

Looking ahead, the convergence of AI, analytics, cloud technologies, Digital Operations and customer experience transformation is expected to create significant opportunities across the IT-BPM industry.

The future operating model is likely to be defined by a Human + AI framework in which AI drives automation, intelligence and productivity, while human expertise provides judgment, empathy and governance. As enterprises increasingly seek measurable returns from technology investments, providers that can combine digital capabilities, operational excellence and industry expertise will be best positioned to capture growth opportunities in the next phase of enterprise transformation.

DIGITAL MEDIA, ENTERTAINMENT & TELECOM

Indias digital media, entertainment and telecommunications sectors continued to expand in 2025 and 2026, driven by rapid digitalization, rising broadband penetration, growing consumption of online content and continued investments in connectivity infrastructure. The convergence of content, connectivity and digital services is reshaping consumer behavior and creating new opportunities across media distribution, broadband services and enterprise connectivity.

According to a FICCI-EY report, Indias media and entertainment (M&E) sector grew 9% to Rs. 2.78 trillion in 2025, with digital media emerging as the largest segment for the first time. The sector is expected to reach Rs. 3.3 trillion by 2028, supported by rising digital consumption, streaming adoption, regional content demand and increased advertising spend.

The OTT ecosystem continues to expand as consumers increasingly prefer on-demand, personalized and multiplat form content experiences. Growth in connected devices, smart televisions and high-speed broadband is driving content consumption across streaming platforms, social media, gaming and live digital experiences. While traditional television continues to face structural challenges, the industry is increasingly moving towards integrated "AND" consumption models where digital and linear platforms complement rather than replace each other.

Broadband connectivity remains a critical enabler of Indias digital economy. According to Highlights of Telecom Subscription Data at the end of March 2026, Indias broadband subscriber base crossed 1.06 billion in March 2026, while total internet subscribers exceeded 1.09 billion, reflecting continued growth in digital adoption across both urban and rural markets. Government-led initiatives such as BharatNet, increasing fiber deployment and expanding 5G coverage are accelerating digital inclusion and broadband penetration nationwide.

The telecommunications sector also continues to benefit from strong data consumption trends, driven by OTT streaming, cloud applications, online education, gaming and emerging AI-enabled services. Fixed Wireless Access (FWA), Fiber-to-the-Home (FTTH) and satellite communications are emerging as important growth segments, helping extend high-speed connectivity to underserved regions. Industry players are increasingly investing in AI-enabled network management, edge computing and next-generation broadband infrastructure to improve customer experience and network performance.

Enterprise connectivity is emerging as a significant growth opportunity as organizations accelerate cloud adoption, AI deployment and digital transformation initiatives. Businesses increasingly require secure, scalable and high-performance network infrastructure, creating demand for managed connectivity, software- defined networking and integrated digital solutions. At the same time, consumers and enterprises are increasingly gravitating toward converged offerings that combine broadband, content, voice, mobility and value-added digital services within a unified ecosystem.

HGSs opportunity

These structural trends create significant opportunities for HGS Digital Media businesses, including NXTDIGITAL, ONEDigital and CelerityX. The continued expansion of broadband networks, rising demand for digital content, enterprise connectivity requirements and integrated digital services positions the Company to participate in Indias long-term digital infrastructure and connectivity growth story.

(Source: FICCI-EY report, TRAI, media reports)

HGS Verticals

Banking, Financial Services and Insurance (BFSI)

The BFSI sector remained a key driver of technology and transformation spending during 2025 and 2026 as institutions focused on modernizing core operations, strengthening risk management and responding to evolving customer expectations. Banks, insurers and financial institutions are increasingly re-architecting legacy platforms, accelerating digital channels and leveraging data-driven decision-making to improve agility and competitiveness.

A major theme across the sector has been the growing strategic value of data. Financial institutions are leveraging proprietary customer, transaction and risk data to enhance credit assessment, fraud detection, underwriting, wealth management and personalized product offerings. Advanced analytics and AI-driven insights are enabling more proactive risk management, faster decision-making and improved customer engagement.

The insurance sector is also undergoing significant transformation, with increased adoption of digital channels, intelligent underwriting, automated claims processing and predictive risk modelling. These capabilities are helping insurers improve operational efficiency, reduce turnaround times and deliver more responsive customer experiences.

At the same time, cybersecurity, fraud prevention and regulatory compliance remain top priorities. As digital transactions continue to rise, financial institutions are increasing investments in identity verification, financial crime monitoring, cyber resilience and governance frameworks to address evolving risks and regulatory requirements. Industry estimates continue to position BFSI among the largest investors in security and risk management technologies globally.

Customer engagement models are also evolving beyond transactional interactions toward relationship-led, personalized and advisory-driven experiences across banking, payments, insurance and wealth management. This is creating a demand for specialized customer lifecycle management, compliance support, analytics and Digital Operations capabilities.

(Source: Gartner, media and industry reports)

Consumer and Retail

The consumer and retail sector continued to adapt to evolving consumer behavior, economic pressures and the rapid expansion of digital commerce, driving investments in omnichannel engagement, customization and operational efficiency. Consumers increasingly sought greater convenience, value and personalization, prompting retailers to strengthen omnichannel strategies and invest in technology-enabled customer engagement.

A key industry trend has been the convergence of physical and digital retail. Leading brands are integrating stores, e-commerce platforms, mobile applications and social commerce channels to deliver seamless shopping experiences. At the same time, retailers are using customer data and advanced analytics to improve demand forecasting, inventory management, pricing decisions and loyalty programs.

Technology adoption continues to accelerate across the sector. AI-powered personalization, predictive analytics and intelligent merchandising are helping retailers enhance customer experiences and improve operational efficiency. Retail media networks have also emerged as a fast-growing revenue stream, enabling retailers to monetize first-party customer data while strengthening relationships with brands and advertisers.

Supply chain resilience remains a priority as retailers respond to geopolitical uncertainty, evolving trade dynamics and changing consumer demand patterns. Companies are investing in data-driven planning, automation and digital supply chain capabilities to improve agility and operational performance.

(Source: KPMG, Deloitte)

Government and Public Sector

The Government and Public Sector markets across developed and emerging markets continue to advance digital transformation initiatives, focusing on improving citizen services, increasing operational efficiency and modernizing legacy technology environments. Governments, especially in countries such as the UK and Canada, are increasingly adopting digital-first service delivery models to meet rising citizen expectations while managing fiscal and resource constraints.

Investments remain focused on cloud adoption, data- driven decision-making, cybersecurity, automation and citizen engagement platforms. Public sector organizations are modernizing service delivery across healthcare, taxation, social services, benefits administration and public infrastructure, with an emphasis on accessibility, efficiency and secure digital interactions.

Cybersecurity, data privacy and regulatory compliance continue to be key priorities as government agencies manage expanding digital ecosystems and growing cyber threats. At the same time, the adoption of AI and automation is beginning to support areas such as citizen support, document processing, case management and administrative workflows, improving productivity while maintaining appropriate governance and oversight.

Citizen expectations are also driving demand for seamless, personalized and omnichannel experiences similar to those offered by private sector organizations. As a result, governments are investing in self-service capabilities, digital contact centers and integrated service platforms that improve responsiveness and accessibility.

(Source: Industry reports, UK Government publications)

Healthcare

The healthcare, life sciences and medical devices industries continued to navigate rising demand, regulatory complexity and cost pressures through investments in innovation, digital technologies and more efficient care delivery models. Organizations across the healthcare ecosystem are focused on improving patient outcomes, accelerating innovation and enhancing operational efficiency amid growing cost and regulatory pressures.

Life sciences companies are increasingly leveraging AI, advanced analytics and digital platforms to accelerate drug discovery, optimize clinical trials and streamline regulatory processes. Industry reports indicate that AI adoption across healthcare and life sciences has reached an inflection point, with organizations moving from experimentation to enterprise-scale deployments that deliver measurable business and clinical outcomes.

The medical devices sector continues to benefit from advances in connected care, diagnostics, remote patient monitoring and wearable technologies. AI-enabled devices, digital therapeutics and real-time patient monitoring solutions are enabling more personalized, preventive and data-driven healthcare delivery. At the same time, increasing device connectivity is elevating the importance of cybersecurity, patient data protection and regulatory compliance.

Patient engagement is also becoming a key area of investment, with healthcare organizations adopting digital channels, virtual support and intelligent service platforms to improve access, responsiveness and the overall patient experience. Together, these trends are accelerating the shift toward more connected, technology-enabled and patient-centric healthcare models.

Business Overview

Hinduja Global Solutions Limited (HGS) is a global provider of technology, AI, and business services that helps organizations transform with confidence. Rooted in decades of operational excellence, HGS combines automation, analytics, artificial intelligence, and deep domain expertise to deliver Intelligent Experiences across the customer lifecycle, from digital customer care to backoffice operations, human resources outsourcing, and advanced contact center solutions.

Building on the strong foundation in CX and business process management, HGS is expanding into new related areas by integrating technology, data, and operational insight to deliver real business results. Our Realized AI methodology brings discipline, speed, and certainty to transformation, delivering right-sized, practical solutions that work here and now, including a 90-day Proof of Value commitment that validates measurable impact in live environments before scaling.

HGS also operates NXTDIGITAL (www.nxtdigital.in), Indias premier digital media distribution company, providing satellite, digital cable, and broadband services to over 4.8 million customers across 1,500 cities and towns.

Part of the multi-billion-dollar Hinduja Group, HGS takes a "globally local" approach with 17,110 employees across 10 countries and 23 delivery centers, supporting some of the worlds most recognized brands. For the year ended March 31, 2026, HGS reported total income of Rs. 4,857 crore (US$ 547.3 million).

Expansion into MENA

In July 2026, HGS expanded its international footprint through the incorporation of HGS MENA IT Consulting L.L.C. in Dubai, UAE. The new entity was established to provide AI and technologies consulting services to enterprises in the MENA region. The incorporation was approved by the Dubai Department of Economy and Tourism.

The establishment of the Dubai entity reflects HGSs continued focus on expanding its technology and consulting capabilities while creating a platform to support growth opportunities in key international markets.

Creating Momentum Through New Clients and Deeper Engagements

A key highlight of FY2026 was the strength of HGSs go- to-market execution and client acquisition momentum. The Company recorded its strongest year ever for new business, adding 79 new clients across CX, Digital and OSS services, creating a broader foundation for future growth. New wins spanned diverse industries and geographies and included transformational engagements across customer experience, finance and accounting, IT outsourcing, AI-enabled operations and application modernization. The sales pipeline also strengthened during the year, growing in both scale and quality, with increasing demand for outcome-based, transformation- led engagements. Clients are increasingly seeking strategic partners that can combine operations, technology, analytics and AI to deliver measurable business outcomes, positioning HGS well to capture larger, multi-service opportunities.

Project GANGA: Advancing Digital Inclusion at Scale

During FY2026, HGS, through its broadband business One OTT Intertainment Ltd. (OIL), signed a Memorandum of Understanding (MoU) with the State Transformation Commission (STC), Government of Uttar Pradesh (UP), for the rollout of Project GANGA (Government Assisted Network for Growth & Advancement), a large-scale digital inclusion initiative in the state. The programme seeks to extend high-speed broadband connectivity to more than 2 million households over the next two to three years, supporting broader access to digital education, healthcare, public services and economic opportunities.

A cornerstone of the initiative is its focus on fostering local entrepreneurship. Project GANGA aims to empower 8,000 to 10,000 entrepreneurs at the Nyaya Panchayat level as Digital Service Providers (DSPs), enabling them to deliver last-mile broadband connectivity and digital services within their communities. With a strong emphasis on youth and women participation, the initiative is expected to create over 100,000 direct and indirect employment opportunities while strengthening the digital ecosystem across Uttar Pradesh. DSPs are supported through training, financing assistance, technology enablement and network deployment capabilities.

The formal launch of Project GANGA by the Honble Chief Minister of Uttar Pradesh in June 2026 marked a significant milestone in HGSs commitment to using technology as a force for inclusive growth. Leveraging the strengths of OILs broadband infrastructure and operational expertise, broadband services under the initiative will be delivered through the Ganga Fiber brand, helping bridge connectivity gaps and create sustainable livelihoods. The initiative reflects HGSs broader vision of combining digital transformation with meaningful social impact, while contributing to Indias digital development agenda.

FY 2026 Consolidated revenue profile Revenue by Origination

US-originated revenue accounted for 28.3% of operating revenues. US-originated revenues are delivered from centres based out of US, India, Philippines, Jamaica, Colombia, South Africa and Canada.

Revenue originating from India were at 38.5% while UK originated business was at 12.9% of operating revenue. UK-originated revenues are delivered from centres based out of UK, US, Philippines, India and South Africa.

Operating revenue originating from Canada were at 8.4%; and 11.9% from Jamaica, Philippines and Australia.

Digital Media Business revenues originate from India while BPM revenues originate from US, UK, Canada, Jamaica, Philippines, India and Australia.

Offshore/ near-shore Revenue

The offshore/near-shore Revenues (Originating in one country and delivered from another country) account for 28.8% of operating revenues.

Voice to Non-Voice Revenue Mix

Voice revenues accounted for 37.4%, Back Office 17.6% and Digital 44.9% of operating revenues.

Revenue by Vertical

Tech, Media & Telecom: 50.5%, Banking and Financial Services: 18.4%, Consumer & Retail: 17.3%, Public Sector: 8.3%, Health & Life science: 2.2% and Others: 3.3%.

Discussion on Financial Position

Property, Plant, Equipment and Intangible assets

The net block of assets (Tangible assets and Intangible assets) as of March 31, 2026 is Rs.8,177 million as compared to Rs.8,858 million in March 31, 2025, representing an absolute decrease of Rs.681 million during the year under review and in percentage terms, it was 7.68%.

The Right to use asset balance as on March 31, 2026

is Rs.9,635 million. The Right to use asset balance as of March 31, 2025 was Rs.10,190 million.

The Capital work-in progress balance as on March 31, 2026 is Rs.157 million. The capital work-in progress balance as of March 31,2025 was Rs.88 million.

The Intangible assets under development balance as on March 31, 2026 is Rs.28 million. The Intangible assets under development balance as of March 31, 2025 was Nil.

The Investment property balance as on March 31, 2026 is Rs.215 million. The investment property balance as of March 31, 2025 is Rs.220 million.

Goodwill

As of March 31, 2026, goodwill is Rs.10,925 million as compared to Rs.9,954 million in March 31, 2025. Goodwill is tested for impairment.

Investments

It mainly comprises of Non-Convertible Debentures, Quoted investments in equity instruments and Treasury bills at overseas location. As of March 31, 2026, investments were Rs.41,436 million as compared to Rs.36,432 million in March 31, 2025.

Loans (Non-current)

As of March 31, 2026, amount of Rs.15 million of loans to third parties. The same as of March 31, 2025, was Rs.15 million. These loans are made on normal commercial terms and conditions and at market rate and are carried at amortized cost.

Other financial assets (Non-current)

It comprises of security deposit, margin money deposit and other long-term deposits. As of March 31, 2026, the amounts were Rs.890 million compared to Rs.794 million in March 31, 2025.

Deferred tax assets (net) [DTA]

DTA as of March 31,2026 were Rs.425 million as compared to Rs.1,024 million in March 31, 2025.

Income tax assets (net)

As of March 31, 2026, amounts were Rs.3,548 million as compared to Rs.3,284 million in March 31, 2025.

Other non-current assets

Other non-current assets include capital advance, prepaid expenses, balance receivable from government authorities, loans & advances and other receivables. As of March 31, 2026, the amounts were Rs.493 million as compared to Rs.385 million in March 31, 2025.

Inventory

Inventory consists of Stock of network cable, equipment and traded goods and other Media Inventory. As of March 31, 2026, inventory were at Rs.308 million as compared to Rs.259 million in March 31, 2025.

Trade receivables

As of March 31, 2026, trade receivables from the customers were at Rs. 8,718 million as compared to Rs.7,645 million in March 31, 2025, after making allowance/ provision for doubtful debts.

Cash and Bank balances

As of March 31, 2026, cash and bank balances were at Rs.6,901 million as compared to Rs.8,559 million in March 31, 2025.

Loans (Current)

As of March 31, 2026, loan amount was Rs.18,807 million out of which loans to related parties were of amount Rs.1,265 million that were given for working capital finance. The Loan amount as of March 31, 2025, were at Rs.19,296 million out of which loans to related parties were of amount Rs.4,132 million that was given for working capital finance, and the balance represents loans given to a third party that are now re-classified as Current Loans. These loans are made on normal commercial terms and conditions and at market rate.

Other financial assets (Current)

It comprises of security deposit, interest accrued, derivative gains, lease receivable and other receivables. As of March 31, 2026, the amounts were Rs.1,352 million as compared to Rs.1,760 million in March 31, 2025.

Other current assets

The Other Current Assets comprises of balance with government authorities, Employee advances, vendor advances, prepaid expenses and other assets. As of March 31, 2026, the amounts were Rs.3,607 million as compared to Rs.2,955 million on March 31, 2025.

Share Capital

The authorized share capital of the Company is Rs.798.5 million comprising of 79.85 million equity shares of Rs.10 each and 0.15 million 1% participatory redeemable noncumulative preference shares of Rs.10 each. The paid- up share capital as of March 31, 2026 was Rs.465.20 million and as of March 31, 2025 was Rs.465.20 million.

Share application money pending allotment

The Share application money pending allotment of the Company as at March 31, 2026 and March 31, 2025 was Nil.

Other Equity

The other Equity of the Company increased from Rs.82,700 million in March 31, 2026 to Rs.76,616 million in March 31, 2025.

Non-Controlling Interest

The non-controlling interest as of March 31, 2026 is Rs.1,196 million as compared to Rs.1,467 million on March 31, 2025.

Borrowing (Non-current)

As of March 31, 2026, the total long-term borrowings were Rs.2,277 million as compared to Rs.3,301 million in March 31, 2025.

Lease liability

In accordance with Ind AS 116, HGS discounted lease payments using the applicable incremental borrowing rate as at the inception of the lease for measuring the lease liability. As of March 31, 2026, the non-current and current portion of the lease liability was Rs.3,601 million and Rs.3,138 million respectively. As on March, 31, 2025, the non-current and current portion of the lease liability was at Rs.4,177 million and Rs.3,386 million respectively.

Other financial liabilities (Non-current)

Other non-current financial liabilities as of March 31, 2026 were Rs.213 million as compared to Rs.50 million as on March 31, 2025.

Provisions (Non-current)

Provision comprises of pension obligation, gratuity and Compensated absences (as per actuarial valuation performed by an independent actuary) & Others. As of March 31, 2026, the provisions were Rs.677 million as compared to Rs.2,161 million on March 31, 2025.

Deferred tax liabilities (net) [DTL]

DTL as of March 31, 2026 were Rs.524 million as compared to Rs.221 million in March 31, 2025. Major components of DTL are due to temporary differences to the Property, Plant, Equipment, unabsorbed depreciation and Hedge reserve.

Contract liabilities (Non-current)

It mainly comprises of Income received in advance from customers. As of March 31, 2026, contract liabilities are Rs. 3 million as compared to Rs.3 million in March 31, 2025.

Other Non-current liabilities

As of March 31, 2026, total Other Non-current liabilities were Rs.0.20 million as compared to Nil in March 31, 2025.

Borrowing (Current)

As of March 31, 2026, total short-term borrowings were Rs.10,663 million as compared to Rs.8,568 million in March 31, 2025.

Trade Payables

As of March 31, 2026, the trade payables were at Rs. 3,512 million as compared to Rs.5,091 million in March 31, 2025.

Other current financial liabilities

Other current financial liabilities consist of Interest accrued, capital creditors, deferred consideration payable, unpaid dividend, employee related payables and derivative loss. As of March 31, 2026, those amounts were at Rs.2,582 million as compared to Rs.3,407 million in March 31, 2025.

Provisions (Current)

Provision includes provision for Gratuity and leave encashment liabilities (as per actuarial valuation performed by an independent actuary). As of March 31, 2026, provisions were Rs.458 million as compared to Rs.369 million in March 31,2025.

Contract liabilities (Current)

It mainly comprises of income received in advance from customers. As of March 31, 2026, the amounts were at Rs.489 million as compared to Rs.370 million in March 31, 2025.

Current tax liabilities

As at March 31, 2026, the amount was Rs.719 million and as at the end of March 31, 2025, the amount was Rs.593 million.

Other current liabilities

Other current liabilities comprise of advance from customers, statutory dues payable and other payables. As of March 31, 2026, the amounts were Rs.2,538 million as compared to Rs.1,359 million in March 31, 2025.

Operational Review

During the financial year under review, the Company has been communicating to all its stakeholders, that the focus of the company is to grow its profitable businesses, reprice or exit unprofitable accounts, generate free cash flows, undertake cost rationalization from time to time, improve return ratios. FY 2026 has seen operating revenue reducing by 2.2% with operating EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization and excluding Other Income) reducing by 61.5%.

Compared to FY 2025, Digital Media business operating revenues dropped by 0.9% while BPM operating revenues reduced by 2.7% in FY 2026. The drop in BPM operating revenues is due to reduction in revenue relating to low margin onshore business. Some onshore clients have migrated to high margin offshore delivery locations, in line with HGS strategy of growing offshore business.

Other Income dropped by 0.9% mainly due to normalisation of higher interest income on tax refunds in FY 2025.

Further, PBT after exceptional item (Profit Before Tax and after Depreciation, Interest Expense) was at loss of Rs.723 million in FY 2026 as compared to profit of Rs.598 million in FY 2025. This drop was primarily on account of drop in Operating EBITDA.

Tax Expense for FY 2026 was Rs.708 million as compared to Rs.1,777 million in FY 2025.The steep decrease is primarily on account of additional deferred tax expense in FY 2025.

The Company reported a net loss of Rs. 1,431 million from Continuing Operations as compared to loss of Rs. 1,178 million in FY 2025.

After taking into account PAT from Discontinued Operations, the Company reported an overall PAT of Rs. 49 million for FY 2026.

As on March 31, 2026, company has treasury surplus of Rs.66,403 million comprising cash & bank balances, loans given and investments in debentures. Total borrowings at the end of FY 2026 stood at Rs.12,940 million.

Key Financial Ratios

Ratios	FY2026	FY2025
Debtors Turnover	5.26	5.84
Current Ratio	3.35	3.21
Debt Equity Ratio	0.15	0.15
Interest Coverage Ratio	3.14	3.54
Operating Profit Margin (prior exceptional item) %	3	5.8
Net profit margin (including discontinued operations) %	0.1	2

The above ratios represent the key financial ratios, as applicable to the consolidated financial statements of HGS. The decline in Operating Profit Margin was primarily attributable to a reduction in operating revenue. The decrease in Net Profit Margin was mainly driven by a one-time exceptional expense and lower profit from discontinued operations during the year.

Return on net worth during the financial year ended March 31, 2026 is 0.1% as compared to 1.3% for the year ended March 31, 2025, primarily due to decrease in operating EBITDA and reduction in Profit from discontinued operations.

Human Capital

As of March 31, 2026, HGS had a global workforce of 17,110 employees across 10 countries and 23 delivery centers.

At HGS, our people are at the heart of everything we do. We believe an employee-first culture is fundamental to delivering measurable business outcomes, accelerating innovation, and creating Intelligent Experiences for our clients and employees. Our peoples strategy is built on the belief that when employees feel valued, empowered, and supported, they are best positioned to unlock their full potential and create meaningful impact for themselves and the organization.

As HGS evolves into a leading technology services provider delivering Intelligent Experience solutions, our employees continue to play a critical role in bringing this vision to life. By combining human judgment with digital capabilities, our teams help enterprises reimagine customer journeys, leverage data-driven insights, deploy AI-enabled solutions, and deliver seamless, personalized experiences at scale, something that has been touted to be the cornerstone of enterprise success.

Your Company is committed to fostering an inclusive, equitable, and high-performance workplace where every employee has the opportunity to learn, grow, and thrive. Through continuous learning, leadership development and recognition programs, we empower employees to build rewarding careers while contributing to the organizations long-term success. This commitment has helped strengthen HGS position as an employer of choice across the markets we serve.

Employee well-being remains a key area of focus. Through flexible work models, wellness initiatives, employee assistance programs, mental health awareness efforts, and resources that support work-life integration, we continue to create an environment where employees feel supported and valued, encouraging them to perform at their best.

By leveraging technology to create seamless experiences across recruitment, onboarding, learning, collaboration, performance management, and recognition, we are building a future-ready workforce equipped for an increasingly AI-driven world. And guided by a culture of inclusion, innovation, and continuous growth, HGS remains committed to investing in its people and enabling them to shape the future of Intelligent Experiences.

Compliance

HGS has implemented a robust Compliance framework to identify, assess, monitor, control and report compliance status with respect to the applicable laws and regulations specific to the geography in which it provides services. Applicable laws and regulations, including Employment and Labour laws, in countries where the Company operates and any changes to the said laws and regulations are reviewed periodically for their compliance.

The Board reviews the compliance status of all the laws and regulations applicable to the Company on a quarterly basis, based on the compliance certificates submitted by the Global CEO and the Global CFO.

Awards and recognitions

In FY2026, HGS received numerous awards and accolades across customer experience, technology, innovation, workplace culture, and business excellence. Some of these recognitions are highlighted below.

Industry Awards:

• HGS AMLens was named Innovative Product Winner at the 2026 BIG Innovation Awards.

• HGS Agent X was recognized with the Most Innovative Practice in the category of Excellence in Best Industry AI Application at the 2nd CII AI Awards 2025.

• Won Gold at the Asia Pacific Stevie Awards 2026 in the Innovation in Cybersecurity & Privacy category for HGS AMLens.

• HGS Da Vinci solution was named the Winner in the category AI in Customer Service - Best Outcomes, Predicting Problems at the Newsweek Asia AI Impact Awards for APAC and EMEA

• HGS Data and Analytics team was recognized amongst the Top 50 Data and Analytics Teams at the OnCon Icon Awards 2025.

• Won the Behavioral AI Solution of the Year award at AI Breakthrough Awards 2025 for a psychometric profiling solution to detect early signs of fraud.

• Won two awards at Brandon Hall Group HCM Excellence Awards 2025 in the categories of -

- Best Employee Engagement Program for Integrated Water Management for Sustainable Development in Ajmer, Rajasthan, India

- Best Social Impact Program for HGS Work to Give employee volunteering program

Analyst Recognitions:

> The Booming 15: ISG Index

o Service & Technology Provider Standouts-Americas in the ISG Index 4Q 2025-Managed Services and As-a service Market Insights.

o Service & Technology Provider Standouts-Americas for the Managed Services Market in the ISG Index 3Q 2025.

o Service & Technology Provider Standouts-"Americas" in the ISG Index 2Q 2025-Managed Services and As-a service Market Insights.

o Service & Technology Provider Standouts-"Americas" in the ISG Index 1Q 2025-Managed Services and As-a service Market Insights.

> ISG:

o For 3rd consecutive year, recognized as "Leader" in Digital Operations, Intelligent Agent Experience, Intelligent CX (AI & Analytics) in ISG Contact Centre Customer Experience Services Provider Lens™ Study - Global.

o EMEA debut - Recognized as Leader in Intelligent

Agent Experience, Intelligent CX (AI & Analytics) in ISG Contact Centre Customer Experience Services Provider Lens™ Study - EMEA.

> IAOP 2026 Global Outsourcing 100? list:

HGS recognized for the 16^th year in a row in the IAOP 2026 Global Outsourcing 100?list (Leader Judging Size category). We received star recognitions for below:-

o Customer References o Awards & Certifications o Programs for Innovation

o Programs for Social Impact

> HFS:

o Recognized as "Enterprise Innovators" In the HFS Horizons: Digital Marketing and Sales Services, 2025.

o HFS Horizons: Intelligent Retail and CPG Ecosystems, 2025 report- HGS has been ranked in Horizon 1 category as a "Disruptor" in the report, emphasizing HGSs commitment to driving digital efficiency through technology- led transformation, focusing on cost reduction, speed, and operational excellence across the value chain.

> Everest Group:

o Recognized as "Aspirant" In Everest Group Financial Crime and Compliance (FCC) Operations Services PEAK Matrix? Assessment 2025.

o Ranked as "Major Contender" In the Everest Group CPG Services PEAK Matrix? 2025.

o Ranked as "Major Contender" in the Everest Group CXM Services PEAK Matrix? 2025.

o "Major Contender" in the Everest Group Digital Transformation Services for Mid-market Enterprises PEAK Matrix? Assessment 2025.

o "Major Contender" in the Everest Group

Banking Operations - Services PEAK Matrix? Assessment 2025.

o Ranked as "Aspirant" in the Everest Group Marketing Services PEAK Matrix? Assessment 2025.

o Featured as a strategic impact sourcing provider in Everest Group Impact Sourcing State of the Market Report 2025, among 18 global providers.

> Nelson Hall:

o HGS is positioned as Leader within the Nelson Hall Conversational Commerce NEAT 2025 - in all 3 market segments that includes the Overall, Retention Capability and the Sales Capability segments.

o "Leader" in the Nelson Hall GenAI-Enabled Operational Transformation 2025 NEAT for "Developing Custom GenAI Solutions".

Competitive Advantage

HGS is advancing its position as a technology services company built for a market where enterprises need AI to deliver measurable value in real operating environments. Through Intelligent Experiences, we combine AI, automation, data, and human expertise to improve the interactions, platforms, and operations that shape business performance. Our advantage is grounded in more than five decades of operational experience.

We understand how work moves across people, processes, and systems, enabling us to embed intelligence directly into critical workflows while maintaining the governance and human oversight required for responsible scale. This foundation is strengthened by deep industry expertise, global delivery capabilities, and an integrated portfolio spanning customer engagement, enterprise technology, and business operations.

Our methodology brings discipline and shared accountability to execution. Through our 90-day proof- of-value promise, we define outcomes upfront and demonstrate measurable value before solutions scale, giving clients greater confidence in their transformation investments. This combination of operational depth, technology capability, and outcome-led delivery positions HGS to meet growing demand for practical, scalable AI and build deeper, higher-value client relationships.

The Digital Media businesss competitive advantage lies in its ability to combine extensive infrastructure, deep distribution reach, and innovative service delivery to address changing consumer preferences in the digital media market. As traditional television viewing continues to fragment, NXTDIGITAL has strengthened customer retention through bundled offerings that combine video, broadband, and value-added services, creating greater convenience and value for customers.

Its nationwide fiber and satellite network provides unmatched reach across India while keeping customer acquisition costs low. The companys prepaid operating model across both B2B and B2C segments minimizes revenue leakage and supports predictable cash flows. At the same time, NXTDIGITAL is effectively leveraging its large DTH subscriber base to drive broadband adoption and cross-sell services.

A key differentiator is its strong ecosystem of Last Mile Owners (LMOs), strategic partners, broadcasters, and technology vendors. These long-standing relationships enable efficient service delivery and support innovative solutions such as the award-winning NXTHUB platform, which helps LMOs seamlessly connect customers to over 650 channels, particularly in Tier II and Tier III markets.

Beyond consumer services, NXTDIGITAL continues to expand its enterprise offerings through CelerityX, leveraging its network infrastructure and technology capabilities to deliver end-to-end connectivity solutions.

Products such as NetX, OneX, and SkyX position the company as a trusted digital connectivity partner for businesses, further diversifying growth opportunities and strengthening its competitive position.

This myriad of solutions from HGS across the entire customer lifecycle spectrum - from cutting edge CX solutions to all-pervasive digital media services - clearly gives us a strong platform to remain and grow as a preferred partner in industry.

Risk and Concerns

HGS has established a robust risk management framework covering all our businesses. The risk framework for acquired businesses is aligned with the existing framework and is integrated at an entity level, further strengthening the overall risk management process.

The business may face new challenges as listed below.

AI and other advanced technologies are reshaping our industry and competitive markets and are expected to continue to do so. The regulations in this area are also evolving. Their use and evolution could create possible competitive risks. AI-driven personalization and content discovery may reshape consumer expectations and intensify competition in the media businesses.

• Entry and expansion of satellite-based broadband providers, including low-earth-orbit (LEO) satellite internet services, may intensify competition, particularly in underserved and remote areas.

• Technology substitution from 5G fixed-wireless access, Wi-Fi 7 and next-generation access technologies may shorten the useful life of current network investments.

• Concentration in, and import dependence for, network equipment together with trusted source telecom- equipment sourcing requirements may expose the business to supply chain and procurement risk.

• Complex and evolving legislations due to emerging and fast evolving legal and regulatory controls in all regions that HGS operates in, with specific emphasis on AI technologies. Other compliance regulations like geo specific Data Privacy regulations, and Immigration.

• Increasing compliance requirements and subscriber- data handling obligations may increase compliance costs and exposure across the media businesses.

• Evolving consumer behavior and changing industry business models, including restructuring driven by market shifts, competition, M&A, regulation, and efficiency initiatives, may adversely affect demand for our existing services.

• Competition globally from other providers and from our clients, who may build global capability centers to provide data and AI-led solutions and services and digital operations solutions and services themselves, either in-house or other arrangements.

• Talent supply chain management becomes very crucial in an ever-changing technological landscape demanding frequent upgrade of talent and skills.

• Heightened risk of increased frequency and intensity of AI powered Offensive Cyber-attacks, compromising businesses.

• Increased frequency and more sophisticated attacks in the form of ransomware, phishing, smishing, etc., despite having strong cyber security controls in place.

• Global geopolitical and macroeconomic events impacting demand and supply. Escalation of the West Asia conflict has disrupted supply of critical inputs and electronic components, compounding existing memory pricing pressure and elevating the landed cost of customer premises equipment.

• Competitive pricing in the markets and segments that we operate in.

HGS has designed and established a robust ERM (Enterprise Risk Management) framework comprising of practices related to identification, assessment, monitoring, and mitigation of risks to its business. ERM practices enable HGS to leverage emerging market opportunities effectively through risk-oriented assessment and mitigation methods that minimize the adverse impact of risks.

HGS ERM objectives include the management of risks related to strategic factors (both external and internal), operations, finance, client and market space, technology, and human resources. Our risk practices seek to strengthen HGS long-term competitive advantage.

Risk management processes are monitored, reviewed, and revised as appropriate to adapt to the evolving global risk landscape. The Risk Management Committee reviews on a periodical basis, the identified risks and actions taken to mitigate them.

Risk Categories

HGS ERM framework considers the following categories of risks across various levels of the organization and geographies viz., enterprise level, business unit level, account level:

1. Strategic: Risks emanating out of the choices we make in industry and markets, resources and delivery models which can potentially impact the strategic objectives of the company. Decisions involving mergers, acquisitions, divestures, joint ventures, and other macroeconomic changes could impact the organization performance.

2. Counterparty: Risks arising out of our association with external entities for conducting business. These include clients, vendors, and business partners.

3. Operations: Risks inherent to business operations, including those relating to service delivery to clients, human resources, information security, cyber security, intellectual property, physical security, and business activity disruptions. This also includes Sustainability (Environmental, Social and Governance) risks on account of uncertain social or environmental event or condition that, if it occurs, can cause significant negative impact on the company.

4. Finance: Risks impacting the financial performance of the company viz. treasury, taxes as per statutory laws in each country of operation, accounting and reporting, foreign exchange fluctuations and pension fund obligations

5. Regulatory & Compliance: Risks due to inadequate compliance with regulations, contractual obligations and violations leading to litigation and loss of reputation.

HGS Risk Management Practices

Risk management practices include identification of risks, impact and consequence analysis, evaluation of risks, mitigation, and monitoring of risks along with reporting and disclosures. Business planning and strategy is integrated with risk management is an ongoing activity.

Risk identification and Impact Analysis

The procedures have been developed for identifying risks through focus group meetings, interviews, questionnaires, historic data analysis, probability forecasting, control assessment, analysis of uncertainties, what-if scenario analysis, business environment, internal audit findings, assessment of the operations and learnings from incident analysis. HGS has guidelines that provide instructions in carrying out impact-consequence analysis for the identified risk.

Risk Evaluation: Risk criteria have been established in deciding the magnitude of risk to the company. Key risk indicators and thresholds have been identified to evaluate the risks. The risk criterion includes costs, performance objectives, reputation, and regulatory compliance. The risk levels are determined using the potential impact, likelihood of occurrence and the risk exposure.

Risk Mitigation & Monitoring: Identified top risks are tracked to assess residual risks levels and likelihood of occurrence. Analysis, exposure, and assessment of top risks are carried out periodically with emerging risks if-any being included. Mitigation plans are finalized, owners are identified, and progress of mitigation actions are monitored and reviewed. The Committee reports to the Board of Directors on the effectiveness of risk management across the enterprise.

Risk Reporting and Disclosures: Risks impacting achievement of business objectives, movement of risk levels, impact and mitigation status are reported and discussed with the Committee periodically. This Committee further reports to the Board through periodic updates highlighting key risks, their impact and mitigation status.

Incorporating risk management with planning and strategy: Business strategy and planning consider the identified risks and mitigation action as an input for the development of strategy and annual business plan.

Internal Controls

As a business philosophy, HGS management believes in growth with a strong governance system and mechanism in place. HGS has a proper and adequate system of internal controls, commensurate with its size and business operation to ensure timely and accurate financial reporting in accordance with the applicable accounting standards, safeguarding of assets against unauthorized use or/ and disposition and compliance with all the applicable regulatory laws and Company policies.

The Company documents all the policies and procedures and from time to time updates the same, which need to be complied with. There is a clear demarcation of roles and responsibilities at various levels of the organization. Internal Control System aims to ensure that business operations function efficiently; that applicable laws, rules and regulations as well as all the policies/ procedures are complied with and there is reliability and consistency of reported accounting and financial data. The Internal Auditors review the internal control systems on an ongoing basis for its effectiveness and suggests necessary changes, which are duly incorporated. The Internal audit reports are also reviewed by the Audit Committee of the Board.

Based on the current structure of internal financial controls and compliance systems established and maintained by the Company, work performed by the Statutory, Internal, external consultants and Secretarial Auditors, including audit of internal financial controls over financial reporting by the Statutory Auditors, and the reviews performed by the Management, the Board is of the opinion that the Companys internal financial controls were adequate and effective during FY 2026.

Audit Trail

The Ministry of Corporate Affairs (MCA) vide its notification No. GSR 206(E) dated March 24, 2021, has issued the "Companies (Audit and Auditors) Amendment Rules, 2021" read with sub-section 3 of Section 143 of the Companies Act, 2013 introducing new Rule 11(e), new Rule 11(f) and new Rule 11(g) and deleting Rule 11(d). This requirement is applicable from April 1, 2023. Based on management assessment and work performed by external consultants, the Board noted that the Holding Company and its subsidiary companies incorporated in India have used accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective softwares.

Cautionary Statement

Some of the statements or certain statements in the above paragraphs of MDA, describing the Companys objectives, expectations, predictions and assumptions may be forward looking in nature, and within the meaning of the applicable Securities Laws and Regulations. The actual financial and non-financial results may differ materially from those expressed herein, important factors that could influence the Companys operations include global and economic conditions affecting demand, supply, price conditions, change in Government regulations, tax policies and regimes, other statutes and other factors such as litigation and industrial relations.