Happy Square targets 80% revenue growth in FY27
Happy Square Outsourcing Services Limited reported a 12.49% increase in total income to ₹10,988.36 lakh for FY26, with a PAT of ₹598.40 lakh. The H2 FY26 performance was particularly strong, with income growing 35.92% to ₹6,650.58 lakh. During the earnings call, management guided for 80% revenue growth in FY27, supported by a ₹35 crore order pipeline from government and private sectors. The company is investing heavily in AI technology, aiming for a 50% AI-driven operational model to enhance margins, and plans to expand operations into Europe.
*this image is generated using AI for illustrative purposes only.
Happy Square Outsourcing Services Limited reported a Profit After Tax (PAT) of ₹598.40 lakh for the financial year ended March 31, 2026. The company posted a total income of ₹10,988.36 lakh for FY26, reflecting a 12.49% year-on-year growth. Management has guided for an 80% revenue growth in FY27, supported by a strong order pipeline and strategic investments in artificial intelligence (AI) technology.
The Board of Directors approved the audited standalone financial results on June 8, 2026. During the H2 and FY26 post-earnings conference call held on June 11, 2026, management highlighted that the company is targeting a sustainable EBITDA margin of 7% plus. The Chief Operating Officer, Mr. Shailesh Rajpal, attributed the recent margin pressure to significant expenses related to the IPO process and heavy investments in AI and technology infrastructure.
Financial Performance
For FY26, the company achieved an EBITDA of ₹786.38 lakh. The half-year ended March 31, 2026 (H2 FY26) demonstrated strong momentum, with total income rising 35.92% to ₹6,650.58 lakh. H2 FY26 PAT stood at ₹421.45 lakh, while EBITDA reached ₹510.25 lakh.
| Particulars | H2 FY26 (₹ Lakhs) | FY26 (₹ Lakhs) |
|---|---|---|
| Total Income | 6,650.58 | 10,988.36 |
| EBITDA | 510.25 | 786.38 |
| PAT | 421.45 | 598.40 |
Operational Highlights and Future Outlook
Happy Square Outsourcing Services Limited operates under the brand White Force, offering temporary staffing, permanent recruitment, and payroll processing. The company serves over 300 corporate clients and has expanded its footprint to more than 20 states. In Q4 FY26, the company secured 25 tenders with a total order inflow of ₹24.13 Crore, including 7 new tenders aggregating ₹12.09 Crore.
Looking ahead, management disclosed a robust pipeline of approximately ₹35 Crore in work orders expected to materialize within 50 to 60 days. This includes a single work order of ₹21 Crore from the Rajasthan government and an additional pipeline of ₹15 Crore. The company is also focusing on international expansion, targeting operations in Europe following the receipt of necessary licenses.
To drive efficiency and margins, the company is integrating AI into its recruitment processes. Management stated that 35% of the product has already launched, including the 'Veera AI' chatbot. The company aims to achieve a 50%-50% mix of AI and human involvement in operations, which is expected to improve profitability significantly by FY28. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for Happy Square Outsourcing Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | +9.85% | +13.05% | -41.32% | -44.84% | -44.84% |
What specific revenue contributions are expected from the new European operations once they are fully operational?
How will the transition to a 50%-50% AI-human operational mix impact the company's headcount and traditional staffing business model?
What is the projected timeline for achieving the targeted 7% plus EBITDA margin given the continued heavy investment in AI infrastructure?
18
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
