Hinduja Global Solutions Ltd (NSE: HGS) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Unidentified Speaker
Venkatesh Korla — Global Chief Executive Officer
Mahesh Kumar Nutalapati — Chief Financial officer
Anand Venugopal
Analysts:
Unidentified Participant
Preesha Shah — Analyst
Presentation:
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operator
Ladies and gentlemen, a very warm welcome to the Q3 and 9 months FY26 earnings call of Hinduja Global Solutions Limited from the senior management. We have with us today Mr. Venkatesh Kolla, Global Chief Executive Officer, HGS Mr. Winsley Fernandez, Whole Time Director and CEO of NXT Digital Media Businesses and Mr. Mahesh Kumar Utlapatti, Global Chief Financial Officer. As a reminder, all participant lines will be in a listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note this conference is being recorded. I now hand the conference over to Mr. Anand Venugopal from AD Fact SPR. Thank you. And over to you sir.
Anand Venugopal
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 these 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.
Venkatesh Korla — Global Chief Executive Officer
Good evening everyone. Thank you for joining us. I’m Venkatesh Khorla, Global CEO of ngs. 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 data 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 the slide which is on slide 4.
For Q3FY 2026, total income of AGS was Rupees 1192.2 crores. Operating revenue was 1075.4 crores and the total EBITDA was Rupees 133.7 crores. EBITDA margins from the quarter stood at 11.2% for the nine months of FY26 total income stood at Rupees 3602.4 crores, operating revenue was 3222.7 crores and the total EBITda was Rupees 451.4 crores. EBITDA margins for the nine 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 the subdued macro environment and elongated decision cycles, especially for larger deals. We’re 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 over interpret 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 three we added 21 new logos in digital operations and technology services which is one of our best quarters for new new signings. These bills are expected to support growth in the next fiscal as they move from early stages into scale to delivery. It typically takes one one and a half 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’re also seeing a growing client appetite for AI infused solutions across customer experience in BFSI healthcare 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, agent AI agent assist and generative AI based solutions that are focused on measurable outcomes.
Finally, we are looking@HGS AgentX as our default delivery platform. The intent is very simple. Every new customer experience opportunity should leverage one or more capabilities of HS AgentX so that we can standardize delivery and compound learning across programs. We should also deliver increased margins for us and better value for our customers. Next I’m on Nick JS Accelerator Solutions and Partnerships. With that context, let me share a quick view of how we’re accelerating solutions and partnerships. We are focused on leveraging the AgentX framework to build repeatable solution assets. We have developed eight new solutions across BFSI healthcare, retail and consumer products includes including AM Lens which is anti mnl, Laundering Lens Interaction Intelligence, Healthcare Caseworker and there are more under development.
We are also leaning into co innovation with our clients with four co innovation programs and products. 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 feature partner status.
As an example on Hijis AgentX the platform is now structured as a 15 module framework with 21 AI assistants already supporting 4 and a half million minutes of voice interactions and close to 3 million minutes of digital interactions. Finally, we’re deliberately targeting mid market clients with verticalized solutions and AI where packaged faster to value offerings matters. 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 two solutions, Interaction Intelligence and AM Lens which we recently launched.
HGS Interaction Intelligence addresses a very practical set of operational pain points. On the problem side it is 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 contact center environments. The solution is designed to make quality and coaching more continuous and data lit. 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 compliance and 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 interactive Intelligence 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 one month to receive that 1% of the calls to under one day to review 25% of their calls.
So this is a significant improvement in agility and creating value for our customers. Similarly, on HGS AM Lens, which is built on explainable AI for anti menai laundering investigations, AM Lens is focused on accelerating AML investigations with explainable AI, improving speed, accuracy and compliance confidence for financial institutions. It’s built around three pillars speed through smart case resolution, accuracy through precision, risk detection and compliance through dashboards and audit trains that keep decisions transparent and review ready. 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.
AM Lens has won industry recognition for its capabilities from organizations such as tv, APAC 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 ags, with our extensive capability in process management, our focus is on intelligent experiences, not AI as a front end layer. Instead, intelligence 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 book rebooking or guiding patients through healthcare 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 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 Vince to talk about the media business. Vince, please go ahead.
Unidentified Speaker
Yeah, thanks Venk Good evening everyone. I hope Tanuja or someone, can you all confirm that you all can hear me loud and clear please?
operator
Oh yes sir, you’re loud and clear.
Unidentified Speaker
Yeah, thank you, thank you, 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 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 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’re happy to announce that those initiatives have been able to garner positive traction as well as the enterprise business, which is Celeritics, there 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 Celeritics, 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 head end in the sky platform. Next digital we continue 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 are 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 three a strategy that we are working on. My colleague Venk spoke about the incredible initiatives that AGS is renowned for now globally in terms of artificial intelligence. We have looked to couple the three as at the media group and focus on them. While we have been doing it for a while, we have 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.
I’m going to go to slide number 12 if you can move to slide number 12. Slide number 12 essentially is to give you all an update on CelerityX. As I mentioned, we’re quite delighted with the way the enterprise business where we’ve leveraged all our installed capacity. So five 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, one OTT Entertainment 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, it 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 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 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 One, it continues growing as we speak. With that I’m going to go to KPIs which is slide number 13. That is, this is something that again I thought would 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 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 FY25. And where we are today is on the right hand side which is Q3FY26.
If you look closely the one key component which is the lowest end of the spectrum, the 10-30 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 a great benchmark.
So quality of services improved radically and obviously network maturity. And if you look at a key segment which is the 101-200Mbps that has also matured from about 6% to 9%. So overall we continue 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 future from the existing base because rather than pursuing new customers, the cost of acquiring a new customer significantly higher then 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 say weekly or monthly or quarterly basis. And on the left where the titles are highlighted in blue is the media business. If you look at it 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 next digital, but the entire industry, whether it is cable television, whether it is head in the sky platforms, whether it is DTH or any other service, linear service. So we have been able to control the churn and more importantly we have been able to retain and maintain the average revenue per user which is in the lower block, if you can see, which was about 122 rupees last year per customer, which is now at 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, lower block which says franchisee 90 Day Chan. 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 ADS 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 three months.
So this is something that we’re quite, you know, 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 three month and greater pack. And the team, the sales teams, the operations teams, their targets are to keep on reducing the less than three months subscriber mix and increase the greater than three 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 is 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 imbibe what my colleague Venk was saying. And we’ve been already there very actively in the 3A space, which is how AGS and us 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 of how we’re using 3A 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’s 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’ll be digital devices as well which will come in future or direct to device services in future.
So how are we ensuring as an organization that we are able to manage this effectively? 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 multi product service menus for them? All of it focused on improving customer experience because at the end of the day the customer today will not hesitate to jump ship if he’s not happy.
He or she is not happy with the quality of service. 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 earlier as well as under the bigger AGS 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 hyperlocal? 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.
Mahesh Kumar Nutalapati — Chief Financial officer
Thank you Vince. I hope I am audible.
operator
Yes sir.
Mahesh Kumar Nutalapati — Chief Financial officer
Thank you. Good evening everyone. I will walk you all through Our financial performance for third quarter and nine 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 clientation cycles, particularly in a few large engagements.
Importantly, these impacts is 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 one time impact of cost optimization initiatives that we have undertaken during this period which do partially get offset by productivity improvements and delivery optimization.
And as we progress once volume normalizes and cost control initiatives start showing benefits, we expect operating leverage to play out more meaningfully. So setting the context, let me get into the details of third quarter and nine months ended 31st December 2025. I am on slide 17. Revenue for the quarter stood at 1075.4 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 123.2 crores as compared to 118.2 crores sequentially and on a year. On year basis depreciation has dropped from 137.5 crores to 123.2 crores.
We recorded a one time 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. Like 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 41 crores as compared to 14.1 crores in the previous quarter and a profit of 41.3 crores 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 49.9 crores in the corresponding periods of the previous year.
During the quarter we have profits from Discontinued operations of INR 90.5 crore 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 US dollars $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 January 5th, 2022 and is being clearly identifiable to the business being discontinued and in line with what it’s disclosed as discontinued operations including net of taxes.
Total PAC 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 nine months ending 31st December 25th and a comparative period of 31st December 24th. Revenue from operations stood at 3222.7 crores versus 3243.1 crore, a marginal drop of 0.6%.
As explained in the quarterly numbers. After considering exceptional item Impact of INR 4.5 crores on new labour code PBT is at minus 81.6 crores as compared to INR 43.6 crores of the earlier period. Taxes for the nine 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 designer 148 crores as against 218 crores in the corresponding period of earlier financial year. Total PAT after considering continual and Discontinued operations is INR 18.5 crores as compared to INR 102.4 crores of the corresponding period.
Total EBITDA is at 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 6429 crores against a debt of 1292 crores with a net treasury balance is around INR 5227 crores. Moving on to next slide which is slide number 20 left side of the chart shows the revenue by source wherein CCX 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 continue to be our largest vertical accounting for 50% of total revenue. CDN retail at 16%, BFSI at 18%, health and life sciences and others accounts for 7% and public sector revenue remains stable primarily from UK and Canada which are mainly consistent with prior quarters. Moving on to the next slide which is slide number 21. This is revenue composition by origination. For the quarter, India accounted for around 38% of the total revenue which is originated from India, US 28%, UK 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 US and Canada it’s around 26%, Philippines accounting for 14% while UK 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 accounts for around 18.8% and top 10 customers represents 28.4%. DSO levels remain well controlled reflecting tight collection disciplines despite the microenvironment and we continue to fund growth initiatives primarily Just to reiterate I think a couple of points.
One is on AI investments. A key point is that our investments in agent AI platforms and proprietary solutions are increasingly moving from investment phase to commercialization as mentioned by Wenk and Vince during their briefing briefings and there is some near term margin absorption as well. As we scale these capabilities we are seeing early revenue tractions and strong client pull which gives us confidence in medium term margin accretion rather than dilution. Looking ahead, we remain cautiously optimistic while micro uncertainty and client prudence may persist in the near term Our pipeline quality AI like differentiation and disciplined financial execution position us well for the gradual improvement in growth in margins.
Our priority remains sustainable profitable growth with continued focus on productivity cost regarding capital efficiencies. With that I will hand it over back to moderator. Thank you.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, please press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Preesha Shah with family office. Please go ahead.
Preesha Shah
Hello, Am I audible? Hello.
operator
Yes ma’. Am.
Preesha Shah
Okay. So hi sir, I have couple of questions. First being can you share measurable productivity or margin improvements driven by the AI infused delivery so far that you mentioned?
Venkatesh Korla
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 US or Canada or uk especially in the US and Canada we’ve been able to see a margin improvement somewhat of 15 to 20% in improvement of margins. So and that is if the delivery is being done out of offshore, we are seeing more of a 10% or so margin.
Preesha Shah
Okay, so this 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, you know which is linked to these, the new AI tools.
Venkatesh Korla
We are seeing demand. There’s a lot of talk about outcome based pricing but when at the end of the day when it comes to it’s 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 calls, call minutes processed through the system. We are seeing traction but it’s still in the early stages.
Preesha Shah
Just one more question sir. So AML Lens which claims like around 75 percentage 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 SAS style offering in the future?
Venkatesh Korla
So we are not looking at as a looking at it as a SaaS offering 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 admin 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 customer 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.
Preesha Shah
Thank you sir. That answers my question. All the best. I’ll join back the queue.
Venkatesh Korla
Thank you.
operator
Thank you. The next question comes from the line of Shruti Sharma. Please go ahead.
Unidentified Participant
Thank you for the opportunity. So, couple of questions. You added 21 new digital operation and tech service logo in Q3 which has been the strongest signing quarter. How do this twin support 27 exploration?
Venkatesh Korla
So I don’t want to truly give a forward looking view but I can give you a general, general view of, you know, 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 two years we expect these customers will 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.
Unidentified Participant
That’s great, sir. And secondly, digital and media service now contribute around 45% of operating revenue. So how do you see this mix evolving over next two to three years?
Venkatesh Korla
Mahesh, you want to take that question?
Mahesh Kumar Nutalapati
Okay, yeah.
Mahesh Kumar Nutalapati
Yes, Simon, as, as I mentioned. Hello Vince, you want to take that up and then I can pitch in someone overall?
Unidentified Speaker
No, no, no, no, no. Mesh gone. Why don’t you explain for me overall perspective? I think that will be better.
Mahesh Kumar Nutalapati
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. The 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 an 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 is coming in that’s how the mix going to evolve.
But not from a periodic certainty. But definitely this is the direction that it will lead to.
Unidentified Participant
Got it, sir. Got it. And lastly, so could you like with a strong traction in Canada, public sector and education. Is the client base structurally diversifying?
Unidentified Speaker
Yes, the client base is structurally diversifying. We are having seen in the past, historically we are public sector customers are primarily from the uk. We are now gaining significant public sector clients in Canada. And as we are proving value in Canada, we are 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 are adding these new logos, the customer concentration risk is coming down.
Unidentified Participant
Got it. That answers my question. Thank you so much.
operator
Thank you. Does that answer your question?
Unidentified Participant
Yes, sir. Yes.
operator
Thank you. The next question comes from the line of Hina Parikh, an individual investor. Please go ahead.
Unidentified Participant
Hello. I have a couple of questions. First one, Neem Mission Bharat has operationalized 15 plus tier 3 towns adding approximately 25,000 subscribers. So could this become a meaningful rule growth engine?
Unidentified Speaker
Yeah. Hi Hina, good. Good to talk to you again. I hope you can hear me, Hina.
Unidentified Participant
Yes, yes, I can hear you.
Unidentified Speaker
Okay. 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 head end in the sky platform. And if you recall, Headend in the sky platform when we launched in 2015, was able to change the way. In Sawang, in Pulwama, in, you know, all Jung, in Arunachal Pradesh, etc. 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 hundred city, 100 town plan can also expand well beyond those hundred towns. So you’re absolutely right, it will become a mainstay going forward because keep in mind two or three 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 enough.
Unidentified Participant
Yes, yes, yes, definitely. Great, great. Thank you so much on that. One last question. If you look three years ahead, what does a scaled AGS look like in terms of revenue mix, margins, AI contribution, anything on that?
Unidentified Speaker
Would you like to.
Venkatesh Korla
Yeah, I’m taking the question so as we look. So first of all, I again 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 HJS 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 will be driven and supported with AI and people working together in the future.
Unidentified Participant
Fair enough. I understood. Really helpful sir. Thank you so much and all the very best.
Venkatesh Korla
Thank you.
Unidentified Speaker
Thank you.
operator
The next question comes from the line of Harshal Patil, an indigent investor. Please go ahead.
Unidentified Participant
Hello, thanks for the opportunity. 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?
Unidentified Speaker
Could you repeat the question please? Sorry.
Unidentified Participant
Sure. With productive and delivery rigor being emphasized, can you share the early indicators of operating leverage as volume ramp?
Venkatesh Korla
So with what you’re noticing is that we are able to reduce the especially in the contact center 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’re 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.
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 a individual is finished on the job training is productive. We are able to continuously do micro training and coaching on an 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 not only improving productivity, it’s also improving quality of service also at the end of the day. Hope that answered your question.
Unidentified Participant
Yeah, sure. Okay. Also you mentioned the elongated decision cycles in a large deals. Are you seeing like early signs of recovery as we approach FY27?
Unidentified Speaker
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. These decision cycles are improving a little bit. That’s more because of, I believe, the trust that we’re establishing with our customers and the value you’re providing. But in general, because of the uncertainty in the macro environment of the macroeconomics environment globally, as well as fatigue on the amount of technology innovation that is happening to some degree, or I call it the next shiny object syndrome, 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.
Unidentified Participant
Okay, thank you so much. I’ll get back in the queue.
Venkatesh Korla
Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for their closing comments.
Venkatesh Korla
Thank you everyone. So why don’t you go ahead? Yeah. Thank you everyone for joining the call. Truly appreciate you taking the time on a Friday evening and you know, 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 Vince.
Unidentified Speaker
Yeah I echo Veng’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 a 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.
Mahesh Kumar Nutalapati
Thanks Vince. 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.
Unidentified Speaker
Thank you.
operator
Thank you on behalf of Hinduja Global Solutions Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.