Financial Results for the quarter and year ended 31 March 2026 attached
HGS · price
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HGS reported standalone revenue of Rs. 1,827 crore for FY2025-26, up 6.8% from Rs. 1,711 crore in the previous year. However, the company recorded a net loss of Rs. 160.58 crore for the year, though this is a significant improvement from the Rs. 322.78 crore loss in FY2024-25. The auditors issued unmodified (clean) audit reports for both standalone and consolidated results. An emphasis of matter was raised regarding a GAAR-related income tax dispute where the company faces a potential tax demand of Rs. 281.59 crore related to the demerger of NXT Digital's DMC business; the Bombay High Court has granted an interim stay. Exceptional items of Rs. 8.70 crore were recorded due to new Labour Codes implementation. The company also appointed M/s. ABK & Associates as cost auditors for FY2026-27.
The significant reduction in losses is a positive sign for shareholders, but the company remains in loss-making territory. The GAAR tax dispute represents a material contingent liability that could impact future financials if the court rules against the company.