Thank you very much. We will now begin the question -and-answer session. First question is from the line of Prisha Shah from Shah family office. Please go ahead. Prisha, may I request you to unmute your line and proceed with your question? Prisha, can you hear us? Due to no response, we move on to the next participant. Next question is from the line of Ankit Jain from Gravita Consulting. Please go ahead.

Good evening all of you. Thank you for giving me this opportunity. Am I audible to all of you?

Yes, sir. Go ahead.

I just wanted to understand that we read in certain sections of the Media that the Project Ganga is going to be on no profit, no loss sort of a situation. Just wanted to understand what margins are we anticipating in Project Ganga? Is it the normal pricing that we are doing like we are doing in all other cases or will it be a subsidized program where we will be bearing the cost of the implementation?

If I may take that. Mr. Jain, good evening. Vynsley here, can you hear me, sir?

So, in terms of Project Ganga, we are the enabler and the knowledge partner. So, from our perspective, obviously, our role expands right up to handholding and commissioning the partner. Your point is valid in terms of what would be the broadband pricing, what would be the margins and how the business would operate. Let me put it to you slightly differently. The idea is that because of the scale of over 2 million homes to be connected, there remains enough of traction. And just to share with you, it's already pretty much public knowledge in terms of the pricing that's going to be rolled out. The pricing is in line with the competition that is there in Uttar Pradesh today in terms of national competition as well as local. So, pricing is not the competition, what we are supporting the State Transformation Commission and the Project Ganga team is to ensure the quality of service because that is what the challenge is today. So, from that perspective, when you look at it, and rightly you pointed out the no profit, no loss aspect, that is in terms of helping support the networks to roll out. But in terms of a pure ISP providing broadband, providing internet services, that remains very much what we are doing in all markets and what is currently prevalent in the state of Uttar Pradesh. I hope that has provided some level of clarity, Mr. Jain.

Yes. So, this will not be a negative cash flow play in your view also, is it?

It is not a negative cash flow at all. That is the reason why we looked at it from a no profit, no loss perspective because for one simple reason, the process, see, let me put it differently. The expertise that we are bringing are from in - house people. We already have the resources in-house. We already have the capabilities in- house. We already have the training team in-house. So, from a perspective of handholding, we already have the resources, the capabilities and the capacities. And from a n ISP perspective, that is a completely different game in terms of being able to help connect them and provide them the bandwidth. So, yes, to your answer, absolutely. We agree with you.

Do you have any follow-up question?

No. Thank you so much.

Thank you very much. Next question is from the line of Aniruddha Sharma from Ekant Investments. Please go ahead.

Hi, sir. Good evening. Am I audible?

Yes, go ahead.

Yes. So, my first question is that you added 19 new CX Digital logos in Q1. So, how should we think about the ramp-up for these clients? And when do you expect them to start contributing meaningfully to the revenue growth?

I will take the question. This is Venk. Can you hear me?

Yes.

Yes. So, typically, once we add new clients, it takes around 6 to 8 months before you start seeing the benefits of that revenue and scale. Initially, it starts off as a small amount of work around $150,000 to $300,000 and then eventually it scales up. In the first 3 months or so, there is actually training and onboarding and ramp -up costs that you incur. T hat is, t o some degree, you will see some margin impacts in the initial months as we grow. But before the end of the year, we should start seeing growth and being margin - attractive to the company. If that answers your question.

Understood. So, my next question is that with the strong addition of the new logos, what do you see as the key factor limiting faster revenue growth right now? Is it the time taken for the clients to ramp up or is it the deal size or is it the growth in the existing business?

It's a combination of both. See, growth in the existing business continues to exist. There are some deliberate ramp-downs as I mentioned in my presentation that will continue to happen and we should be coming to an end of that before the end of this current fiscal year. As we add these new clients, they are going to be smaller in size compared to the past clients because with

AI, the actual revenue size goes marginally smaller than in the past. But on the other hand, margin is higher. Therefore, we expect higher margins and revenue growth to pick up before the end of the year. As far as the limiting factors, it is ramp -up. Essentially, it takes time to transition from the customer, get the training done, and get people deployed into the projects.

Okay, sir. So, one last question from my side. Do you expect the pace of new logo additions to remain strong through FY27 or was Q1 an unusual strong quarter in this regard?

I expect it to continue to stay strong. In fact, in the last quarter or the end of the last fiscal year, I did talk about we added approximately 78 o r 79 new logos in all last fiscal year. We are continuing to see similar types of growth. But all these logos do take time to generate revenue because you need to establish trust, you need to establish ramp-up and then drive the growth with the customer.

Okay, sir. Understood. So, thank you for the opportunity, sir. That's it from my side.

Thank you. Next question is from the line of Prisha Shah from Shah's Family Office. Please go ahead. Prisha Shah, may I request you to unmute your line and proceed with your question?

Hi, sir. Good evening. I have a couple of questions. So, starting with the strong demand which you are seeing for Agentic AI and the APAs. So, are clients now moving from pilots to production deployments? And what would be the typical timeline for this particular transition to happen?

Customers badly want to move from pilots to production deployments. But for sure, there is a demand for that. The question is, are they ready for it? And the challenge that we continue to see is not all customers are ready with the data story and the governance story related to move to that phase. So, albeit the fact that there is high demand, there is also the challenge that the customer may not be 100% ready, or they have an understanding of what

need to change in their internal governance structures and how they deploy their teams for the new way of working with Agentic AI. We are definitely seeing a transition. We think that over the course of this year, we will see that progress and the deployments become larger and larger as we progress through the year.

Understood, sir. And my other question would be, where do you see HGS having a sustainable edge in AI given that the underlying technology is becoming increasingly commoditized these days? So, where do you see HGS in this particular scenario?

Actually, HGS benefits from the idea of underlying technology becoming commoditized. Because the underlying AI foundational models are getting commoditized. But applying the foundational models to a specific industry problem and a specific process re -engineering problem is something that is unique to that customer and that company. And that is where HGS stands out. HGS’ history has always been helping customers re -engineer their process and running those processes effectively and efficiently. In the past, we did it with a huge number of talent and team members. Today, it is a hybrid of talent and AI technology that you are able to deliver that value to the customer. So, I think as the foundation models become more commoditized, it actually benefits HGS because the cost of the foundation model goes down. Therefore, the customer will be willing to spend more time in really adopting the technology to their use. Hope that makes sense for you.

Understood, sir. Very well answered. So, my last question would be how we as an investor measure the success of Agent X® over the next, let's say, 12 to 18 months’ time in terms of the customers, deployments, revenue or expansion within the existing accounts, if you may answer that.

Yes, I mean, as we look to the future, one of the big things that we are looking at is how many customers are using and how many contracts that we have, have AI embedded in them. It is less about AI specific revenue because technically, every piece of work we should be doing in the future should have AI as a component of it. One of the things that we can potentially start looking

at tracking is how much of the revenue is influenced by AI. That is something we can take away as a question and see how we can measure that and report it out.

Okay, thank you, sir. Understood. That were all my questions. Thank you and all the best.

Yes. Thank you. Next follow-up question is from Ekant Investments. Please go ahead.

I just had a few more follow -up questions on my side. So, I just wanted to know how has the new intelligent experience positioning changed the conversations you are having with clients compared with the traditional VPN CX offerings?

We are seeing a lot of traction and excitement with the clients related to the idea of intelligent experiences. That is starting to translate into leads coming in, existing customers reaching out, both intrigued by what it means and also to understand how they can adopt it. It has created an excitement around the concept. And from our perspective, after all, an intelligent experience is actually taking the experience and making it contextual, making it data - driven, making it knowledge-enabled with both human and AI team members working together. So, as we look to the future, we think that this will continue to drive demand and drive value for our customers. In the current world, especially with AI technology getting commoditized as a previous caller was asking, what's happening is more and more of the large brands are seeing a risk to their own business where they can be disrupted with a small AI - enabled team that can come and disrupt their business. The only competitive differentiator these large brands will be able to create for the future is customer loyalty and brand affinity by their consumers, which can be gained and created or maintained for the long term through delivering some of the exceptional customer experiences that you can deliver. And those customer experiences are dependent on creating context, which is nothing, but what we are calling as intelligent experiences. So, we are seeing a lot of excitement.

Okay, understood. So, are you seeing larger or more integrated deals as a result of this positioning? And could just gradually improve the quality of HGS revenue mix?

Yes, we see every new deal that we have closed recently has AI components enabled in it. Either it is leading to running the operation and process using AI as at least 20% to 30% of the work, eventually scaling to almost 60% to 70% is what we foresee as the customers get more comfortable with AI performing the job. Or we see scenarios where a customer wants to get into intelligent experiences, leading into a large amount of additional project or additional work that is related to data and analytics. Because fundamentally to get intelligent experiences going, you need to get your systems integrated, your data quality cleaned up, and data throughput figured out. And then on top of it, the governance before you can deliver any AI driven experience. So, we are seeing a lot of the footprint of the types of work becoming more multi - towered deals. As the time progresses, we expect this to drive higher revenues and higher margins to our business.

Okay, sir. Just one last question from my side. If we look at FY27 as a whole, where do you see the biggest acceleration coming from? Is it from the existing client-exec expansion or is it new logos or is it AI, digital or is it broadband?

I expect the largest expansion growth driver is in the AI digital space. But as always, existing clients drive growth because establishing a new client, gaining the credibility with that client and driving growth from that takes time. Existing clients believing in the new concept of intelligent experiences and starting to adopt AI and digital technology for their needs is where the growth is going to come from in FY27.

Okay, sir. That's it from my side. Thank you for answering my question, sir.

Mahesh, would you like to go first and then Venk can go last to close everything. Mahesh?

Yes, sorry I was on mute.

No problem. Maybe you want to go first and then I will go and then Venk can do the honors of closing.

Sure, sure. Thank you everyone for joining us and hearing about what are our plans and how this quarter is being spanned. As I mentioned earlier, we remain cautiously optimistic with macro uncertainties and of course the client prudence where clients are waiting how AI is going to span out and what kind of contributions that is going to get in. There is a certain kind of a prudence from a client's perspective. And the 1st Quarter results also fairly reflect that. But as I mentioned earlier, our priority remains sustainable, profitable growth with continued rigor and cost, productivity, and capital efficiencies. Thank you once again for your continued trust and partnerships.

Good evening everyone. This is Vynsley here. I would just like to summarize, like I started the presentation on the digital Media business, that it's been a strong quarter for the Media business, especially in terms of the broadband vertical. We are very excited with Project Ganga , Government Assisted Network for Growth and Advancement. This has entered the execution of the operational mode in Quarter 2. And at the end of Quarter 2, obviously we will be in a much better and a completely different position in terms of reporting. That is something which is right at the top of our agenda, supporting the government of Uttar Pradesh in its digital inclusion, digital transformation, and social initiative plan that goes without saying. Secondly, we are very happy that CelerityX has continued to see traction. And we will continue to invest in building this enterprise vertical. We are seeing more and more corporates across the country looking to engage with a single window service company catering to the portfolio that is looking at the portfolio that CelerityX has. And the fact is that CelerityX, as I mentioned, is also looking, well I probably didn't, is looking to build in more products in its portfolio through engagements, through relationships,

strategic alliances. And this put together will certainly improve the quality of the revenue mix, while of course Retail broadband continues to grow as we are seeing it. The challenge for us remains on the digital television front. And we will continue to work on mitigation strategies, whether it be innovation or whether it be cost optimization. Those will remain ongoing to ensure that we continue to build a strong business over the next few quarters in the years to come. With that, thank you very much. And over to my colleague , Venk, for his closing remarks.

Everyone, thank you so much for taking the time to be on this call and listening to the progress and where we are heading. I am very optimistic, albeit with the caution about the macroeconomic situations and the changes happening in the market. We think that we are very well positioned for capturing the future opportunities that are there and continuing to drive growth. Thank you so much for being on the call.

Thank you very much. On behalf of Hinduja Global Solutions Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- This is a transcript and may contain transcription errors. The company or the sender takes no responsibility for such errors, although an effort has been made to ensure high level of accuracy. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------