Happiest Minds Technologies Releases Integrated Annual Report for FY 2025-26
Happiest Minds Technologies reported consolidated revenue of ₹2,31,511 lakhs (+12.3% YoY) and PAT of ₹21,263 lakhs (+15.1%) for FY 2025-26, with total dividend of ₹6.40 per share. The Generative AI Business Services segment grew 120.8% to ₹7,866 lakhs. Acquisitions of PureSoftware, Aureus, and GAVS Middle East were fully integrated, and the company launched its AI-first strategic transformation. The 15th AGM is scheduled for July 28, 2026.
*this image is generated using AI for illustrative purposes only.
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:
| Metric: | FY 2025-26 | FY 2024-25 | Change |
|---|---|---|---|
| Operating Revenue (₹ lakhs): | 2,31,511 | 2,06,084 | +12.3% |
| Total Income (₹ lakhs): | 2,40,008 | 2,16,222 | +11.0% |
| EBITDA (₹ lakhs): | 48,835 | 46,223 | +5.6% |
| PAT (₹ lakhs): | 21,263 | 18,466 | +15.1% |
| EBITDA Margin (%): | 20.3 | 21.4 | — |
| PAT Margin (%): | 8.9 | 8.5 | — |
| Net Worth (₹ lakhs): | 1,68,949 | 1,57,458 | — |
| RoCE (%): | 21.9 | 20.8 | — |
| RoE (%): | 12.8 | 11.9 | — |
| Diluted EPS (₹): | 14.11 | — | — |
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:
| Segment: | FY 2025-26 (₹ lakhs) | FY 2024-25 (₹ lakhs) | Growth |
|---|---|---|---|
| Product & Digital Engineering Services (PDES): | 1,84,736 | 1,69,691 | +8.9% |
| Infrastructure Management & Security Services (IMSS): | 38,909 | 32,832 | +18.5% |
| Generative AI Business Services (GBS): | 7,866 | 3,562 | +120.8% |
| Total: | 2,31,511 | 2,06,084 | +12.3% |
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:
| Parameter: | Details |
|---|---|
| Active Clients: | 300+ |
| New Clients Onboarded: | 51 |
| Repeat Revenue: | 92.6% |
| Million Dollar Customers: | 52 |
| Net Promoter Score (NPS): | 68 |
| IT Professional Headcount (March 31, 2026): | 6,497 |
| Days Sales Outstanding: | 94 days |
| Cash and Investments (March 31, 2026): | ₹1,55,936 lakhs |
| R&D Expenditure (₹ lakhs): | 2,571 |
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/ .
Historical Stock Returns for Happiest Minds Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.54% | +2.22% | -7.52% | -24.90% | -45.78% | -70.60% |
Can the 120.8% growth in the Generative AI Business Services segment be sustained into the next fiscal year, and what are the projected revenue contributions from this vertical?
With the integration of PureSoftware, Aureus, and GAVS now complete, what is the expected impact on operating margins and cost synergies for FY 2026-27?
How does the company plan to utilize its substantial cash reserves of ₹1,55,936 lakhs—will it prioritize further acquisitions, R&D, or shareholder returns?
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