Happiest Minds Reports Strong H1 FY26 Results, Raises Growth Commitment

Happiest Minds Technologies has reported robust financial results for the first half of fiscal year 2026, demonstrating strong growth and improved performance across key metrics. The company has also raised its growth commitment, signaling confidence in its future prospects.

Financial Highlights

Metric	Value	Growth
H1 FY26 Revenue	$129.50 million	11.80% (constant currency)
EBITDA Margin	20.80%	-
Generative AI Business Unit (GBS) Growth (Q2)	-	77.80% YoY
Generative AI Business Unit (GBS) Growth (H1)	-	79.00% YoY
GBS Sequential Growth	-	15.30%

Key Performance Indicators

New Client Acquisition: The Net New Sales initiative added 30 new clients, generating approximately $9.00 million in revenues.
Future Revenue Potential: The company estimates that these new clients represent a potential of $50-60 million over the next 3 years.
Utilization Rate: Company-wide utilization improved to 80.70%, marking the highest level in 3 years.

Strategic Outlook

Based on its strong performance and pipeline visibility, Happiest Minds has raised its growth commitment. The company now aims for four consecutive years of double-digit growth through FY28, up from its previous commitment of three years.

Dividend Announcement

The Board of Directors has declared a dividend of INR 2.75 per share, rewarding shareholders for the company's positive performance.

Generative AI: A Key Growth Driver

The Generative AI business unit (GBS) has emerged as a standout performer for Happiest Minds:

77.80% year-on-year growth in constant currency for Q2
79.00% year-on-year growth for H1
15.30% sequential growth

This exceptional performance in the AI sector underscores the company's focus on cutting-edge technologies and its ability to capitalize on emerging market trends.

Conclusion

Happiest Minds Technologies' strong H1 FY26 results, coupled with its increased growth commitment and impressive performance in the Generative AI sector, position the company favorably for sustained growth. The improved utilization rate and successful client acquisition strategy further reinforce the company's positive trajectory in the competitive tech landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.09%	-1.79%	-3.38%	-16.89%	-33.10%	+44.78%

Happiest Minds Technologies Limited has announced its financial results for the half year ended September 30, 2025, showcasing robust growth and operational efficiency.

Financial Highlights

Metric	H1 FY26	YoY Growth
Total Income	₹1,175.00 crore	13.2%
Revenue (Constant Currency)	-	11.8%
EBITDA	₹244.00 crore	3.7%
EBITDA Margin	20.8%	-
PAT	₹111.00 crore	10.6%
Operating Revenue (USD)	$129.50 million	9.8%

Q2 FY26 Performance

Metric	Q2 FY26	YoY Growth
Total Income	₹595.00 crore	8.5%
Operating Revenue (USD)	$65.10 million	4.4%

Operational Metrics

Client Base: 290 clients as of September 30, 2025, with 13 new additions in Q2
Employee Count: 6,554 Happiest Minds
Attrition Rate: 17.4% (trailing 12-month)
Utilization: Improved to 80.7%, the highest in three years
DSO (Days Sales Outstanding): Reduced from 91 days to 88 days

Strategic Initiatives

Happiest Minds has made significant progress in its strategic transformations:

Generative AI Business Unit: Developed 22 transformative use cases with a potential sales value of nearly $50.00 million.
Net New Sales Unit: Added 30 new clients in H1, representing a revenue potential of $50.00-60.00 million over the next three years.
AI-First Approach: Focusing on platforms with AI at the core to drive transformation for enterprises.

Key Project Wins

The company secured several notable projects across various sectors:

Database modernization for a Fortune 100 Insurance company
Cybersecurity enhancement for a global healthtech company
Quality Engineering refinement using Gen AI for a global information services company
Multi-year network managed services implementation for a US cloud computing provider
Automation program support for a European food company

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹2.75 per equity share (face value ₹2.00) for the financial year 2025-26, with a record date of November 4, 2025.

Management Commentary

Ashok Soota, Chairman & Chief Mentor, expressed confidence in the company's growth trajectory, stating, "Our ten strategic transformations are clearly yielding results. We are extending our earlier commitment of three consecutive years of double-digit growth to four years."

Joseph Anantharaju, Co-Chairman & CEO, highlighted the success in Generative and Agentic AI, mentioning, "Our AI-first approach is enabling enterprises to drive transformation with speed, precision, and measurable impact."

Venkatraman Narayanan, Managing Director, emphasized the company's disciplined execution and prudent financial management, noting, "We have maintained margins comfortably above our lower guidance of 20% despite salary revisions and continued investments in strategic initiatives."

Happiest Minds Technologies continues to focus on sustaining double-digit growth, driving profitability, and building a resilient business that creates long-term value for all stakeholders.