HandsOn Global Management (HGM) Limited Stock Analysis

Name: HandsOn Global Management (HGM) Limited (HGM) Stock Analysis
Brand: NSE India
Rating: 3.5 (1 reviews)

HGM NSE India

HandsOn Global Management (HGM) Limited (HGM) is a India-based company listed on NSE. This AI-powered analysis provides investment insights based on quarterly earnings reports and financial performance metrics.

Share Share Share

HGM Limited presents a concerning investment case despite impressive 145.8% YoY revenue growth to Rs 1424.54 lakhs in Q3 FY2026, as the company swung from a profit of Rs 147.19 lakhs in Q3 FY2025 to a loss before tax of Rs 299.41 lakhs in the current quarter. The deterioration is driven by unsustainable cost structure with employee costs consuming 95.8% of revenue (Rs 1364.88 lakhs) and other expenses surging 595% to Rs 300.99 lakhs, resulting in negative operating margin of -21.02% and net margin of -21.91%. With interest coverage at -6.83x, EPS of -2.48, and nine-month FY2026 showing marginal profitability of only Rs 56.62 lakhs despite revenue of Rs 4680.54 lakhs, the company faces severe profitability challenges that overshadow topline growth.

Based on: HandsOn Global Management (HGM) Limited - Financial Results (14/2/2026) (Feb 14, 2026)

+ Key Strengths

Strong revenue growth momentum with Q3 FY2026 consolidated revenue reaching Rs 1424.54 lakhs, representing 145.8% year-over-year growth from Rs 579.53 lakhs in Q3 FY2025

Strategic portfolio expansion through incorporation of HealthCare Capital Holding LLC in May 2025 and acquisition of Aideo Technologies LLC in September 2025, diversifying operational capabilities

Clean audit opinion with statutory auditors Lodha & Co LLP issuing unmodified conclusion on both standalone and consolidated financial results for Q3 FY2026

Total equity of Rs 1146.25 lakhs with share capital of Rs 1259.5 lakhs provides reasonable capital base for operations with book value per share of Rs 9.1

- Key Risks

Severe profitability deterioration with loss before tax of Rs 299.41 lakhs in Q3 FY2026 versus profit of Rs 147.19 lakhs in prior year quarter, indicating operational distress despite revenue growth

Unsustainable cost structure with employee benefits expense at 95.8% of total revenue (Rs 1364.88 lakhs) and other expenses surging 595% YoY to Rs 300.99 lakhs, resulting in negative operating margin of -21.02%

Critical interest coverage ratio of -6.83x with finance costs of Rs 43.85 lakhs against negative EBIT of Rs 299.41 lakhs, raising concerns about debt servicing ability

Material related party transactions totaling US$ 15.95 million requiring shareholder approval across multiple entities including US$ 8.70 million with HealthAxis Group LLC and US$ 6 million with XBP Europe Limited, creating dependency and governance concerns

Regulatory risk from four Labour Codes consolidated and brought into force on November 21, 2025, with company unable to quantify full impact pending notification of rules and state-level regulations

Negative earnings per share of -2.48 for Q3 FY2026 and marginal nine-month profitability of only Rs 56.62 lakhs on revenue of Rs 4680.54 lakhs indicates persistent operational challenges throughout the fiscal year

Forward Outlook

The company executed two strategic acquisitions during the period with HealthCare Capital Holding LLC incorporation in May 2025 and Aideo Technologies LLC acquisition in September 2025, signaling expansion ambitions in IT-enabled services. Management has proposed material related party transactions totaling approximately US$ 15.95 million across four entities (HealthAxis Group LLC, XBP Europe Limited, SourceHOV LLC, and HOVG LLC) pending shareholder approval via postal ballot, which could drive revenue but raises questions about profitability given current margin pressures. The nine-month trend showing only Rs 56.62 lakhs profit on Rs 4680.54 lakhs revenue suggests continued operational struggles, and without specific guidance on cost rationalization or margin improvement initiatives, the outlook remains cautious for the next 2-4 quarters despite topline momentum.

All Scores

Date	Report	Score	Sentiment	AI
Feb 26, 2026	HandsOn Global Management (HGM) Limited - Financial Results (14/2/2026)	3.5	Sell	Claude
HGM Limited presents a concerning investment case despite impressive 145.8% YoY revenue growth to Rs 1424.54 lakhs in Q3 FY2026, as the company swung from a profit of Rs 147.19 lakhs in Q3 FY2025 to a loss before tax of Rs 299.41 lakhs in the current quarter. The deterioration is driven by unsustainable cost structure with employee costs consuming 95.8% of revenue (Rs 1364.88 lakhs) and other expenses surging 595% to Rs 300.99 lakhs, resulting in negative operating margin of -21.02% and net margin of -21.91%. With interest coverage at -6.83x, EPS of -2.48, and nine-month FY2026 showing marginal profitability of only Rs 56.62 lakhs despite revenue of Rs 4680.54 lakhs, the company faces severe profitability challenges that overshadow topline growth. STRENGTHS: Strong revenue growth momentum with Q3 FY2026 consolidated revenue reaching Rs 1424.54 lakhs, representing 145.8% year-over-year growth from Rs 579.53 lakhs in Q3 FY2025 / Strategic portfolio expansion through incorporation of HealthCare Capital Holding LLC in May 2025 and acquisition of Aideo Technologies LLC in September 2025, diversifying operational capabilities / Clean audit opinion with statutory auditors Lodha & Co LLP issuing unmodified conclusion on both standalone and consolidated financial results for Q3 FY2026 / Total equity of Rs 1146.25 lakhs with share capital of Rs 1259.5 lakhs provides reasonable capital base for operations with book value per share of Rs 9.1 RISKS: Severe profitability deterioration with loss before tax of Rs 299.41 lakhs in Q3 FY2026 versus profit of Rs 147.19 lakhs in prior year quarter, indicating operational distress despite revenue growth / Unsustainable cost structure with employee benefits expense at 95.8% of total revenue (Rs 1364.88 lakhs) and other expenses surging 595% YoY to Rs 300.99 lakhs, resulting in negative operating margin of -21.02% / Critical interest coverage ratio of -6.83x with finance costs of Rs 43.85 lakhs against negative EBIT of Rs 299.41 lakhs, raising concerns about debt servicing ability / Material related party transactions totaling US$ 15.95 million requiring shareholder approval across multiple entities including US$ 8.70 million with HealthAxis Group LLC and US$ 6 million with XBP Europe Limited, creating dependency and governance concerns / Regulatory risk from four Labour Codes consolidated and brought into force on November 21, 2025, with company unable to quantify full impact pending notification of rules and state-level regulations / Negative earnings per share of -2.48 for Q3 FY2026 and marginal nine-month profitability of only Rs 56.62 lakhs on revenue of Rs 4680.54 lakhs indicates persistent operational challenges throughout the fiscal year

What is the AI Stock Score?

The AI Stock Score is a composite rating from 0-10 generated by analyzing quarterly earnings reports using three leading AI models (Google Gemini, Anthropic Claude, and OpenAI ChatGPT). Each AI independently evaluates financial performance, growth prospects, risks, and market positioning to provide an objective investment perspective.

How should I interpret Buy/Hold/Sell ratings?

Buy (7.0-10.0): Strong fundamentals and positive outlook. Hold (4.0-6.9): Mixed signals, suitable for existing positions. Sell (0-3.9): Deteriorating fundamentals or significant risks. These are AI-generated opinions for informational purposes only, not investment advice.

How is the composite score calculated?

The composite score is the mathematical average of the latest scores from each AI provider. For example, if Gemini rates 7.5, Claude rates 4.5, and ChatGPT rates 6.0, the composite score would be (7.5+4.5+6.0)/3 = 6.0. This multi-AI approach reduces bias from any single model.

How often are scores updated?

Scores are automatically generated within hours of quarterly earnings results being published on NSE. The system monitors earnings announcements 4 times daily and processes new reports immediately. Check the "Last Updated" date at the top of this page for the most recent analysis timestamp.

Is this financial advice?

No. This is AI-generated analysis for informational and educational purposes only. MarketsHost is not a SEBI-registered Research Analyst or Investment Adviser. AI models can produce inaccurate results. Always consult a qualified financial advisor and conduct your own due diligence before making investment decisions.