Happiest Minds Technologies (HAPPSTMNDS) investor relations material

Executive summary

• FY26/FY 2026 saw 12.3% revenue growth, strong profitability, improved utilization, and over 300 active customers, marking 15 years since founding.

• AI and GenAI became central to customer engagements, driving robust pipeline growth and strategic positioning as an AI-first digital engineering partner.

• Strategic wins included engagements in insurance, warehouse automation, healthcare software modernization, and energy.

• Leadership team strengthened with key hires in BFSI, Healthcare, Retail, and SAP Center of Excellence.

• Maintained high repeat business (92.6%) and expanded active client base to 306, including 91 Fortune 2000/Forbes 200 companies.

Financial highlights

• FY26/FY 2026 revenues reached INR 2,315 crores (₹2,31,511 lakhs), up 12.3% year-over-year; constant currency growth was 9.2%.

• Q4 operating revenues were INR 604 crores (₹60,408 lakhs), up 2.8% sequentially and 10.9% year-over-year.

• EBITDA margin for FY26 was 20.3%; operating margin for FY26 was 17.4%.

• Adjusted PAT for FY26 was ₹27,863 lakhs, up 9.4% year-over-year; full-year PAT was ₹21,263 lakhs, up 15%.

• Return on capital employed improved to 21.9%-22% from 21% last year; ROE at 12.8%.

• Final dividend of ₹3.65 per share, total dividend for the year at ₹6.40 per share.

Outlook and guidance

• FY27 revenue growth guidance reconfirmed at 12.5% in constant currency, with aspirations for 15% medium-term growth.

• Operating margin targeted at 17.5%-18.5% for FY27, with a goal to improve margins by at least 100 basis points.

• Pipeline grew 27% quarter-on-quarter, supporting confidence in guidance.

• Planned headcount of 1,050 for FY27, with focus on Generative AI and Analytics.

• Emphasis on scalable AI solutions and deeper client engagements.