Happiest Minds Technologies Limited , a digital transformation company, has announced robust financial results for the first quarter of fiscal year 2026, demonstrating resilience and growth in a challenging global IT landscape.

Financial Highlights

• Revenue grew by 17.5% year-on-year in constant currency terms
• Total income reached ₹580.00 crores, up 18.5% year-over-year
• EBITDA stood at ₹124.00 crores with a margin of 21.4%, marking the 20th consecutive quarter within the guided range
• Operating margin improved to 17.6%, showing a sequential growth of 19.7%
• Profit After Tax (PAT) increased to ₹57.00 crores, representing 9.9% of revenue

Operational Performance

• Utilization rate improved to 78.9%, the highest in the last 9 quarters
• Active customer base grew from 281 to 285
• Million-dollar clients increased from 57 to 59
• Repeat business remained strong at 94%

Strategic Initiatives and Growth Drivers

Generative AI Business Unit

Showed significant traction with 14.5% sequential and 89.8% year-on-year growth. The unit achieved breakeven at an operating margin level this quarter.

Industry Verticalization

The reorganization into six industry verticals is fueling growth, particularly in Travel, Media & Entertainment, and Manufacturing sectors. BFSI has become the largest vertical, contributing 26% to revenues.

Acquisitions Integration

Recent acquisitions have deepened capabilities in BFSI and accelerated leadership in AI-driven digital transformation.

Net New Sales Engine

Investments in this area are beginning to yield results, contributing to the strong pipeline and order book growth.

Product-led SaaS Strategy

The Arttha unified banking platform and Insurance-in-a-Box solutions are showing encouraging signs of expansion.

Outlook

Despite the challenging global IT environment, Happiest Minds remains confident in its growth trajectory. The company aims to deliver double-digit growth in constant currency for FY2026 while maintaining EBITDA margins in the range of 20% to 22%.

Joseph Anantharaju, Co-Chairman and CEO, commented, "Our strategic transformations and focused investments are clearly driving strong financial outcomes, telling a compelling story of purposeful change, seamless integration, and long-term value creation."

Venkatraman Narayanan, Managing Director, added, "We'll continue to drive growth in areas like Cloud Data, Cybersecurity, and AI-led transformation in our verticals of focus while maintaining financial discipline."

As Happiest Minds Technologies continues to navigate the evolving IT landscape, its focus on innovation, strategic partnerships, and operational efficiency positions it well for sustained growth in the coming quarters.

Happiest Minds Technologies Limited has reported robust financial results for Q1, alongside earning recognition as a top workplace in the United States.

Strong Financial Performance

The 'Born Digital. Born Agile.' Mindful IT Company delivered impressive growth in the first quarter:

• Total income reached ₹580.00 crores, representing an 18.50% year-on-year increase
• Constant currency growth stood at 17.50% year-on-year
• EBITDA margin maintained at 21.40%, within the company's guided range of 20-22%
• Sequential revenue growth of 2.30% in dollar terms, reaching $64.40 million

Joseph Anantharaju, Co-Chairman and CEO, highlighted the company's strong performance amidst challenging market conditions. "In a quarter where most reported muted or single-digit growth, our strong profitability and disciplined execution clearly sets us apart," he stated.

Operational Highlights

Happiest Minds saw improvements across several key operational metrics:

• Active customers increased from 281 to 285
• Million-dollar customers grew from 57 to 59
• Utilization improved to 78.90%, the highest in nine quarters
• BFSI emerged as the largest vertical, contributing 26% to revenues

The company's Generative AI Business Services unit achieved breakeven at the operating margin level, swinging from a loss of ₹2.53 crores in the previous quarter to a marginal profit of ₹0.24 crores.

US Workplace Recognition

In a significant achievement, Happiest Minds has been recognized among the Top Workplaces 2025 in the Technology category by Top Workplaces USA. This recognition, based entirely on feedback from US team members, reflects the company's commitment to creating a positive work environment.

Sachin Khurana, Chief People Officer, commented on the achievement: "This recognition isn't the result of one program, it's the outcome of everyday intent, authentic connections, and processes built around listening."

Strategic Focus and Outlook

Happiest Minds continues to invest in key areas to drive future growth:

• Deepening capabilities in BFSI and accelerating leadership in AI-driven digital transformation
• Focusing on six industry verticals, with strong momentum in Travel, Media & Entertainment, and Manufacturing
• Investing in Generative AI and a new sales engine to build a foundation for sustained high-quality growth

The company maintains its guidance for double-digit growth in constant currency for the year while targeting EBITDA margins in the 20-22% range.

Venkatraman Narayanan, Managing Director, emphasized the company's focus on profitable growth: "Our results reflect our unwavering focus on growth alongside profitability."

As Happiest Minds continues to navigate the evolving IT landscape, its strong financial performance and workplace recognition position it well for future success in the digital transformation space.