HRH Next Services Ltd. (HRHNEXT)
SME CapServices stocks · SME cap · NSE
HRH Next Services Ltd. is an India-focused customer engagement and contact center services provider, offering voice, chat, email, social media, and digital platform support in 11 vernacular languages. The company has recently launched AINA, its AI division, to enhance customer experience and operational efficiency.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 100/100Rev +50% YoY · PAT +742% YoY · margin expansion · +11% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹35.9 Cr | +49.8% | +11.4% |
| EBITDA | ₹6.7 Cr | +157.5% | +15.7% |
| Operating margin | 18.7% | +965 bps | +69 bps |
| PAT | ₹2.8 Cr | +742.4% | +33.6% |
| PAT margin | 7.7% | +392 bps | +129 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
HRH Next reports healthy FY26 revenue growth of 17.2% to INR 68 crores, up from INR 58 crores, with dramatic expansion in PAT margins driven by AI integration and operational efficiencies.
The company delivered strong FY26 results with significant revenue growth and margin expansion, attributed to its AI division, AINA, and operational cost controls. Management is bullish on AI's potential to drive future growth and profitability, aiming for main board listing and inorganic growth.
AINA (AI Division)
Positive2026 is going to be the AINA year for us, where we are not just only talking about the growth-wide in terms of a client model, but also we are ex- we are going to have a huge shift in the customer experience.
Vernacular AI Solutions
PositiveAINA speaks to the customer in all 11 vernacular languages... our tools are language agnostic, the acceptance is really, really good.
Existing Client Relationships
PositiveAverage partnership goes for more than 5 to 6 years. Swiggy is with us for 10 years, Vodafone for 15 years.
Inorganic Growth
PositiveWe're also looking at some sort of an inorganic growth. A lot of people want to join our success journey.
New Centers Planned (FY27)
PlannedWe are looking at at least making two centers in this financial year, with about 3 to 3.5 crores worth per center.
AI Development Capex (FY27)
PlannedAnother 3.5 to 4 crores will go, or a little bit more, around 5 to 6 crores will go, in, AI development.
AI Adoption in Enterprises
PositiveHuge potential that AI is there to offer... most of these large enterprises... we have worked very closely with them.
Access to Large Enterprises
PositiveNew AI players will come in, but it's very difficult for them to reach into the boardrooms of large enterprises. We probably have a wildcard entry there.
Delayed Payments from Large Enterprises
NegativeSome challenges with delayed payments from large enterprises, but that is because they are doing their next round of fundraisers and going for IPOs.
Rapidly Evolving AI Landscape
NeutralThese things are so changing so fast and so drastically, Bhumika, you never know.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The earnings call explicitly discusses financial results for the full financial year (FY26) compared to the previous year (FY25), indicating annual performance is the primary focus for assessing growth and profitability.
Revenue Growth (FY26)
PositiveRevenue grew from about 58 crores to now close to 68 crores.
PAT Margin Expansion
PositivePack margins have expanded dramatically... because of the heavy, AI play that has come in.
EBITDA Growth (FY26)
PositiveFY26 revenue grew 18%, while EBITDA grew 38%.
AI-enabled Services Revenue (FY26)
Positive7 crores of revenue had come in from, digital platforms, and AINA. Out of the total.
FY27 Revenue Guidance
PositiveNatural run rate, we hope to get it to about 75 to 80 crores. With inorganic growth, the idea was that we could make an attempt to go to the main board with 100 crore revenue.
PAT Margin Target
PositiveLooking to expand the pat margins, to beyond 10-12%... this business clearly operates at around a 10% to 12% to maximum 15% PAT margins.
Future Ambition (4-5 years)
PositiveOnce you enter into the main board, opportunities will really open up, probably look at bigger acquisitions, very larger play in the AI space.
Company Identity
NeutralWe are now a totally AI-led services company... We will probably never turn into a product-based company. We'll always remain an AI-first services company.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AINA Revenue Contribution | 7 crores in FY26 | Progress towards 50% of total revenue from AI division in 3 years. |
| Main Board Listing Qualification | Aiming for 100 crore revenue milestone. | Achievement of 100 crore revenue and other criteria for NSE main board listing. |
| PAT Margins | Expanded dramatically in FY26. | Expansion beyond 10-12% towards 15% as AI contribution increases. |
| New Center Openings | 8 strategic locations, Palakkad most recent. | Commissioning of two new centers in FY27 (Mysore and Indore identified as next steps). |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
32Bearishfull bear SMA stack · SMA20 -4.8% / mo · MACD − · near 52W low
Technical chart
HRHNEXTdaily · 1Y · AUTO+11.4%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 46.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~5.1% over last month) — short-term momentum negative.
- RSI(14) at 46 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 35% off 52W high · 21% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 60 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 60 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 73.7%.
- Valuation contributes 30/30 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Quality is weaker at 5/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 45th percentile of the scored universe and 50th percentile within Services. Main check: cash conversion is weak at 43/100.
Healthy Trust Lite: Promoter holding is 56.6%. Key concern: Only 0 years of positive FCF.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Services: 50th pctile, median 66 · SME: 56th pctile, median 64
6 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 56.6%.
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 1.1%.
Trust risks
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 6.90
- P/B
- 0.81
- EV/EBITDA
- 3.04
- Market Cap
- 33.50Cr
Profitability
- ROE
- 12.50%
- ROCE
- 15.80%
- ROA
- 4.97%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 23.00%
- EPS 5Y
- 81.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 0.43
- Interest Coverage
- 6.33×
- Altman Z
- 2.04
- Book Value
- 31.40
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- 28.25 Cr
- EPS TTM
- 3.68
Shareholding
- Promoter Hold
- 56.57%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 24%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Services, ranked by similarity
Peers
Business-comparable names in Services, ranked by similarity
Peers
Business-comparable peers in Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.