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.

Happiest Minds Technologies Limited , a prominent player in the Indian IT sector, has achieved a significant milestone in its corporate restructuring efforts. The company recently received approval from the National Company Law Tribunal (NCLT), Bengaluru Bench, for the amalgamation of its wholly-owned subsidiary, Sri Mookambika Infosolutions Private Limited.

Key Details of the Amalgamation

The amalgamation scheme, approved under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, marks a strategic move for Happiest Minds Technologies. This corporate action may streamline operations and potentially enhance operational efficiency within the organization.

Regulatory Compliance

In adherence to regulatory requirements, Happiest Minds Technologies has promptly disclosed this development to the stock exchanges. The company's commitment to transparency is evident in its timely communication with the BSE Limited and the National Stock Exchange of India Limited.

Implications and Next Steps

While the specific financial and operational implications of this amalgamation are yet to be detailed, such corporate restructuring often aims at synergizing resources, reducing administrative overheads, and potentially improving overall business performance. Shareholders and market observers will likely keep a close watch on how this amalgamation unfolds and its impact on the company's future operations and financial results.

As the appointed date for the merger is set for April 1, 2025, stakeholders may anticipate further updates from the company regarding the integration process and any material impacts on its business structure in the coming months.