Happiest Minds Technologies reports FY26 results, shares report link
Happiest Minds Technologies Limited communicated the web-link for its FY26 Integrated Annual Report to shareholders without registered email addresses, complying with SEBI regulations. The company reported a 12.3% rise in consolidated revenue to ₹2,31,511 lakhs and a 15.1% increase in PAT to ₹21,263 lakhs. The Board recommended a final dividend of ₹3.65 per share, taking the total dividend for the year to ₹6.40 per share.
*this image is generated using AI for illustrative purposes only.
Happiest Minds Technologies Limited has communicated the web-link for the Integrated Annual Report for financial year 2025-26 to shareholders who have not registered their email addresses with the company or depositories. This communication, sent on July 6, 2026, complies with Regulation 36(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following an amendment dated December 12, 2024. The company previously submitted the report to the exchanges on July 3, 2026, pursuant to Regulation 34(1) and Regulation 53(2) of the SEBI Listing Regulations. The specific web-link provided is https://www.happiestminds.com/investors/agm-and-annual-report/ .
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.
Historical Stock Returns for Happiest Minds Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.86% | -2.32% | +8.06% | -8.27% | -39.52% | -73.31% |
Can the 120.8% growth in the Generative AI Business Services segment be sustained as the market matures, and what is the projected revenue contribution from this segment in the next fiscal year?
With the integration of recent acquisitions now complete, what is the expected impact on operating margins and cross-selling opportunities in the upcoming year?
How does the company plan to utilize its substantial cash reserves of ₹1,55,936 lakhs—will the focus remain on dividends, or is a renewed M&A strategy on the horizon?
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