Happiest Minds Technologies Limited , a digital transformation company, has reiterated its confidence in its growth trajectory and financial performance. The company's management expressed optimism about its Q3 results, citing several positive factors that are expected to contribute to its continued success.

Key Highlights

• Management expresses confidence in Q3 results
• FY26 forecast maintained: double-digit revenue growth and 20-22% EBITDA margins
• Revenue growth commitment extended to FY28
• Factors contributing to positive outlook:
  • Strong pipeline
  • Carryover of Q2 deals
  • Seasonal increase in banking contracts
  • Launch of new GenAI billing

Financial Outlook

Happiest Minds Technologies has maintained its forecast for FY26, projecting:

The company has also extended its commitment to double-digit revenue growth for an additional two years, now spanning until FY28. This extended commitment underscores the management's confidence in the company's long-term growth prospects and its ability to maintain a strong market position.

Factors Driving Confidence

The management's optimistic outlook for Q3 is based on several key factors:

1. Strong Pipeline: The company reports a robust pipeline of potential projects and clients, indicating healthy demand for its services.

2. Q2 Deal Carryover: Deals secured in the second quarter are expected to contribute to revenue in Q3, providing a solid foundation for growth.

3. Seasonal Banking Contracts: A typical increase in banking-related contracts during this period is anticipated to boost the company's performance.

4. New GenAI Billing: The launch of new billing related to Generative AI services is expected to open up additional revenue streams.

Dividend Announcement

In a recent development, Happiest Minds Technologies declared an interim dividend of ₹2.75 per equity share (face value ₹2) for the financial year 2025-26. The record date for this dividend is set for November 4, 2025, with payments to be made on or after November 17, 2025.

Conclusion

Happiest Minds Technologies' reaffirmation of its growth forecast and the extension of its revenue commitment demonstrate the company's confidence in its business model and market position. The combination of a strong pipeline, ongoing deals, seasonal factors, and new technological offerings positions the company well for continued growth in the coming quarters.

Investors and stakeholders will likely be watching closely to see how these positive factors translate into actual financial performance in Q3 and beyond.

Happiest Minds Technologies Limited (NSE: HAPPSTMNDS) has reported robust financial results for the second quarter and first half of fiscal year 2026, demonstrating strong growth and strategic execution in the AI-led digital services space.

Financial Highlights

For Q2 FY26, Happiest Minds reported:

• Revenue of $65.1 million, growing 1.2% quarter-on-quarter and 4.4% year-on-year
• Total income of ₹59,517 lakhs, up 2.6% quarter-on-quarter and 8.5% year-on-year
• EBITDA of ₹12,027 lakhs, representing 20.2% of total income
• Adjusted PAT of ₹6,552 lakhs, growing 3.1% year-on-year

For H1 FY26, the company achieved:

• Revenue of $129.5 million, growing 9.8% year-on-year
• 11.8% year-on-year growth in constant currency terms
• Total income of ₹117,510 lakhs, up 13.2% year-on-year
• EBITDA of ₹24,432 lakhs, maintaining a 20.8% margin

Strategic Initiatives and Growth Drivers

Happiest Minds' performance reflects the success of its ten strategic transformations announced in the last quarter of FY25. Key highlights include:

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

2. Net New (NN) Sales Focus: An independent NN sales unit has added 30 new clients in H1, representing a revenue potential of $50-60 million over the next three years.

3. AI-First Approach: Happiest Minds is leveraging AI-core architectures to drive enterprise transformation across various industry sectors.

4. Offshore-Led Model: The company maintains a strong offshore presence, with 93.9% of its workforce based offshore, minimizing the impact of recent U.S. immigration policy changes.

Operational Metrics

Market Recognition

Happiest Minds has received several accolades, including:

• 'Major Contenders' in Everest Group's Software Product Engineering Services PEAK Matrix® Assessment 2025
• 'Product Challenger' in ISG Provider Lens™ study for AI-driven ADM Services 2025 in the U.S. region
• Multiple Brandon Hall Awards for Learning & Development Excellence

Management Commentary

Ashok Soota, Chairman & Chief Mentor, expressed confidence in the company's growth trajectory, stating, "The momentum we are seeing in GBS and the strength of our NN pipelines give us the confidence to extend our earlier commitment of three consecutive years of double-digit growth to four years."

Joseph Anantharaju, Co-Chairman & CEO, highlighted the company's success in Generative and Agentic AI, noting, "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, emphasized the company's financial discipline, stating, "We have maintained margins comfortably above our lower guidance of 20% despite salary revisions and continued investments in our strategic initiatives."

Outlook

With its strong financial performance, strategic focus on AI and digital services, and a growing client base, Happiest Minds Technologies appears well-positioned for continued growth in the evolving IT services landscape. The company's commitment to maintaining double-digit growth for four consecutive years underscores its confidence in its business model and market opportunities.

Investors and industry observers will likely keep a close watch on Happiest Minds' execution of its AI-led strategy and its ability to capitalize on the growing demand for digital transformation services across various sectors.