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.

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.