Happiest Minds Technologies (HAPPSTMNDS) Q2 25/26 earnings summary

Executive summary

• Achieved H1 FY26 revenue of $129.5M, up 11.8% in constant currency, with EBITDA margin at 20.8%.

• Q2 FY26 revenue was $65.1M, up 1.2% sequentially and 4.4% YoY, with adjusted PAT for Q2 at ₹6,552 lakhs and EBITDA margin at 20.2%.

• 30 new clients added in H1, with $50M-$60M revenue potential over three years.

• Strategic transformations, including Generative AI Business Services (GBS) and net new (NN) sales unit, drove growth.

• Interim dividend of ₹2.75 per share declared for FY26.

Financial highlights

• H1 FY26 revenue: $129.5M (11.8% CC growth); INR 1,123 crore (14% YoY); Q2 revenue: $65.1M (4.4% YoY).

• EBITDA for H1: INR 244 crore (20.8% margin); Q2 EBITDA: ₹12,027 lakhs (20.2% margin).

• PAT for H1 FY26 was ₹11,115 lakhs, up 10.6% YoY; Q2 PAT was ₹5,402 lakhs, up 9.1% YoY.

• Gross margin improved to 37.7% in Q2 FY26.

• Debt-equity ratio stable at 0.78; ROCE at 22.8%, ROE at 13.8%.

Outlook and guidance

• Raised guidance to four consecutive years of double-digit revenue growth through FY28.

• FY26 aspiration: double-digit revenue growth in constant currency, EBITDA margin in 20%-22% range.

• Focus on AI, cloud, cybersecurity, and data-driven transformation across key verticals.

• Margins expected to remain above 20% despite ongoing investments and salary revisions.