Happiest Minds Technologies Limited (NSE: HAPPSTMNDS), an AI-led digital engineering and Mindful IT company, has announced robust financial results for the second quarter and first half of fiscal year 2026, demonstrating strong growth and strategic execution.

Key Financial Highlights for Q2 FY26

• Revenue reached $65.1 million, growing 4.4% year-on-year and 1.2% quarter-on-quarter
• Total income stood at ₹59,517.00 lakhs, up 8.5% year-on-year
• EBITDA margin maintained at 20.2% of total income
• PAT (Profit After Tax) increased by 9.1% year-on-year to ₹5,402.00 lakhs

H1 FY26 Performance

• Revenue in constant currency grew by 11.8% year-on-year
• Operating revenues in USD reached $129.5 million, a 9.8% year-on-year growth
• Total income rose to ₹1,17,510.00 lakhs, marking a 13.2% year-on-year increase
• EBITDA stood at ₹24,432.00 lakhs, representing 20.8% of total income

Strategic Developments

Happiest Minds has extended its commitment to double-digit growth from three to four consecutive years, buoyed by the success of its strategic initiatives. The company's Generative AI Business Unit (GBS) has developed 22 transformative use cases with a sales potential of nearly $50 million. Additionally, 30 new client additions in H1 represent a revenue potential of $50-60 million over three years.

Operational Highlights

• Client base expanded to 290 as of September 30, 2025
• Employee count reached 6,554 with improved utilization at 80.7%
• Trailing 12-month attrition rate decreased to 17.4%

Key Wins and Recognitions

Happiest Minds secured several significant projects across various sectors, including:

• A complex database modernization project for a Fortune 100 Insurance company
• Enhancing cybersecurity for a global healthtech company
• Implementing Gen AI for Quality Engineering processes for a global information services company

The company also received multiple awards, including triple recognition at the Brandon Hall Awards 2025 for Learning & Development Excellence.

Management Commentary

Joseph Anantharaju, Co-Chairman & CEO, stated, "Our AI-first approach, anchored on platforms with AI at the core of their architecture, is enabling enterprises to drive transformation with speed, precision, and measurable impact."

Venkatraman Narayanan, Managing Director, highlighted the company's financial prudence, saying, "We have maintained margins comfortably above our lower guidance of 20% despite salary revisions and continued investments in our strategic initiatives."

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹2.75 per equity share for FY 2025-26, with a record date of November 4, 2025.

Happiest Minds' strong performance and strategic focus on AI and digital transformation position it well for continued growth in the evolving IT services landscape.

Happiest Minds Technologies Limited , an AI-led digital engineering and Mindful IT company, has announced its financial results for the second quarter of fiscal year 2026, showcasing steady growth and strategic investments in emerging technologies.

Financial Highlights

For Q2 FY26, Happiest Minds reported:

• Revenue of $65.10 million, up 4.4% year-over-year (YoY) and 1.2% quarter-over-quarter (QoQ)
• Constant currency revenue growth of 2.3% QoQ and 6.7% YoY
• Total income of ₹59,517 lakhs, an increase of 8.5% YoY and 2.6% QoQ
• EBITDA of ₹12,027 lakhs, representing 20.2% of total income
• Profit After Tax (PAT) of ₹5,402 lakhs, 9.1% of total income, growing 9.1% YoY
• Adjusted PAT of ₹6,552 lakhs, 11% of total income, up 3.1% YoY
• Adjusted Earnings Per Share (EPS) of ₹4.35

Half-Year Performance

For H1 FY26, the company achieved:

• Revenue of $129.50 million, growing 9.8% YoY
• Constant currency revenue growth of 11.8% YoY
• Total income of ₹117,510 lakhs, up 13.2% YoY
• EBITDA of ₹24,432 lakhs, 20.8% of total income
• PAT of ₹11,115 lakhs, 9.5% of total income, increasing 10.6% YoY
• Adjusted PAT of ₹13,415 lakhs, 11.4% of total income, rising 9.6% YoY
• Adjusted EPS of ₹8.91

Operational Metrics

As of September 30, 2025:

• Active client base of 290, with 13 new additions in Q2
• Total workforce of 6,554 Happiest Minds
• Trailing 12-month attrition rate decreased to 17.4% from 18.2% in the previous quarter
• Utilization improved to 80.7% from 78.9% in the last quarter

Strategic Developments

Happiest Minds highlighted several strategic initiatives:

1. Generative AI Business Unit (GBS): The company reported 22 transformative use cases progressing into replicable projects, with a potential sales value of nearly $50 million.

2. Net New (NN) Sales Unit: This initiative resulted in 30 new client additions during H1, representing a revenue potential of about $50–60 million over the next three years.

3. AI-First Approach: The company is focusing on platforms with AI at the core of their architecture to drive transformation for enterprises.

4. Offshore-Led Model: Happiest Minds emphasized its minimal dependence on H1-B visas, with only two professionals sent on such visas in the past 12 months.

Key Wins and Recognition

Happiest Minds secured several significant projects across various sectors, including:

• Database modernization for a Fortune 100 Insurance company
• Cybersecurity enhancement for a global healthtech company
• Generative AI implementation for Quality Engineering processes
• Multi-year network managed services for a US cloud computing provider

The company also received recognition from industry analysts, including:

• 'Major Contenders' in Everest Group's Software Product Engineering Services PEAK Matrix® Assessment 2025
• 'Aspirants and Star Performer' in Everest Group's Retail Services PEAK Matrix® Assessment 2025
• 'Product Challenger' in ISG Provider Lens study for AI-driven ADM Services 2025 in the U.S. region

Management Commentary

Ashok Soota, Chairman & Chief Mentor, expressed confidence in the company's strategic transformations, particularly highlighting the success of the Generative AI Business Unit and the focus on expanding Net New accounts.

Joseph Anantharaju, Co-Chairman & CEO, emphasized the company's robust H1 FY26 performance and the potential of Agentic AI in creating significant opportunities for intelligent automation and business transformation.

Venkatraman Narayanan, Managing Director, noted the company's disciplined execution and prudent financial management, maintaining margins above 20% despite ongoing investments in strategic initiatives.

Dividend Announcement

The Board of Directors declared an interim dividend of ₹2.75 per equity share (face value ₹2) for the financial year 2025-26, with the record date set for November 4, 2025.

Happiest Minds Technologies continues to focus on AI-led customer-first digital engineering and Mindful IT services, leveraging its expertise in disruptive technologies and strategic partnerships to drive growth across various industry sectors.