Happiest Minds Technologies has filed its Business Responsibility and Sustainability Report for the financial year 2025-26 with the stock exchanges. The filing, made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the company's adherence to the National Guidelines on Responsible Business Conduct (NGRBC). The report highlights the company's commitment to ESG principles, including a target to achieve carbon neutrality in its operations by 2030 and a 100% reduction in Scope 1 and Scope 2 greenhouse gas emissions.

The company reported that 83.08% of its total turnover for the year was derived from exports, serving a diverse portfolio of over 300 global customers. In terms of workforce composition, the total headcount stood at 5,218, comprising 5,098 employees and 120 workers. Women accounted for 26.34% of the total employee strength, while the Board of Directors included two female members out of seven. The report also noted that 16% of inputs were sourced sustainably during the year.

Sustainability and Environmental Targets

Happiest Minds has set specific commitments to mitigate environmental risks, including achieving carbon neutrality by 2030 and significantly reducing water consumption and waste generation by 2030. The company maintained solar energy utilization at 12.13%, compared to 10% in the previous year. Additionally, 100% of wastewater generated at its leased facility was recycled via a Sewage Treatment Plant (STP) and reused for gardening and washrooms.

Governance and Compliance

The report confirmed that the company has not incurred any fines, penalties, or punishments from regulatory bodies during the financial year. It maintains an Integrity Policy and an Anti-Bribery Policy to uphold ethical standards. The CSR Committee of the Board is responsible for decision-making on sustainability-related issues. The company also stated that it does not fall under the purview of External Assessment or Assurance as per SEBI requirements.

Financial and Operational Metrics

The following table summarizes key operational and financial figures disclosed in the report:

The company continues to focus on integrating ESG principles into its core business strategies to address emerging risks and enhance operational efficiency.

Happiest Minds Technologies Limited has submitted its Integrated Annual Report for FY 2025-26 to BSE Limited and the National Stock Exchange of India Limited, pursuant to Regulation 34(1) and Regulation 53(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, filed on July 3, 2026, also includes the Notice of the 15th Annual General Meeting scheduled for July 28, 2026.

Financial Performance: Revenue and Profitability

The company delivered a strong financial performance in FY 2025-26, with consolidated revenue from contracts with customers growing 12.3% year-on-year. The following table summarises key consolidated financial metrics:

Revenue growth was driven by favourable exchange rates, improved billing rates, and contributions from acquisitions completed in FY 2024-25. The company's profit before exceptional items and tax increased 13.1% to ₹30,280 lakhs, while profit before tax rose 11.3% to ₹28,421 lakhs.

Business Segment Performance

The company operates through three business units. Segment-wise revenue performance for FY 2025-26 compared to FY 2024-25 is presented below:

The Generative AI Business Services segment recorded the highest growth at 120.8%, reflecting accelerating enterprise adoption of AI-led transformation solutions.

Dividend and Capital Allocation

The Board declared an interim dividend of ₹2.75 per equity share at its meeting held on October 28, 2025, and has recommended a final dividend of ₹3.65 per equity share for FY 2025-26. The total dividend for the year stands at ₹6.40 per equity share, compared to ₹6.00 per equity share in the previous financial year. If approved by shareholders at the 15th AGM, the total outflow on this account will be ₹9,745.59 lakhs. The record date for the final dividend is July 17, 2026, with payment expected on or after August 4, 2026.

Strategic Developments and M&A Integration

FY 2025-26 was characterised as a year of consolidation following strategic acquisitions completed in FY 2024-25. The integrations of PureSoftware Technologies, Aureus Tech Systems, and GAVS Technologies' Middle East business were fully completed during the year, with all entities now operating within the company's unified governance and operating framework.

• Aureus Tech Systems brought approximately 150 professionals with deep expertise in Azure-native cloud solutions, AI-driven services, and application modernisation, with domain strength in Insurance and Healthcare.
• PureSoftware Technologies expanded the company's capabilities in BFSI and Healthcare, and contributed revenues of ₹35,065 lakhs post-acquisition in FY 2024-25.
• GAVS Technologies Middle East strengthened regional presence and provided access to marquee BFSI clients in the Middle East.

The company also launched its 11th strategic transformation, 'AI First. Agile Always.', embedding artificial intelligence across engineering, platform development, and customer experience functions.

Client Base and Operational Highlights

Key operational metrics for FY 2025-26 are summarised below:

The company also recorded a 27% increase in its pipeline, reflecting sustained demand for AI-led digital transformation services.

ESG and CSR Highlights

The company spent ₹619.3 lakhs on CSR activities in FY 2025-26 against a total CSR obligation of ₹576.2 lakhs, resulting in an excess spend of ₹43.1 lakhs. Key ESG initiatives included:

• Environmental: Solar installations contributing approximately 12% of overall facility energy consumption; construction of 895 percolation wells under the One Billion Drops programme; plantation of over 1.21 lakh trees through Cauvery Calling and 1,00,000 mangroves in coastal Tamil Nadu.
• Social: Partnership with Akshaya Patra Foundation with ₹160 lakhs allocated for mid-day meals; ₹46.0 lakhs allocated for diabetes care for children under 14; mental health initiatives impacting 1,500+ individuals.
• Governance: Received a 'Strong' ESG rating from CRISIL; certified as Top Employer India 2026 with a score of 92% against an industry benchmark of 85%.

Annual General Meeting

The 15th Annual General Meeting will be held on Tuesday, July 28, 2026, at 4:00 PM IST through video conference. The agenda includes adoption of standalone and consolidated financial statements for FY 2025-26, declaration of the final dividend of ₹3.65 per equity share, re-appointment of Mr. Joseph Vinod Kumar Anantharaju as Director retiring by rotation, and re-appointment of M/s. Deloitte Haskins & Sells as statutory auditors for a second consecutive term of five years from the conclusion of the 15th AGM to the conclusion of the 20th AGM. The Integrated Annual Report and AGM Notice are available on the company's website at https://www.happiestminds.com/investors/agm-and-annual-report/ .