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

Q2 FY26 Performance

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:

1. Generative AI Business Unit: Developed 22 transformative use cases with a potential sales value of nearly $50.00 million.
2. 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.
3. 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.

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.