Happiest Minds Technologies (HAPPSTMNDS) Q4 25/26 earnings summary

Executive summary

• FY26 revenues grew 12.3% year-over-year to ₹2,31,511 lakhs, with operating margins at 17.4% and adjusted PAT at ₹27,863 lakhs, marking 15 years since founding.

• Active client base expanded to 306, including 91 Fortune 2000/Forbes 200 companies, with a record pipeline increase of 27%.

• 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.

Financial highlights

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

• Q4 FY26 revenue grew 2.8% sequentially and 10.9% year-over-year to ₹60,408 lakhs.

• EBITDA margin for FY26 stood at 20.3%, with operating margin at 17.4%.

• Adjusted PAT for FY26 was ₹27,863 lakhs (11.61% of total income), up 9.4% year-over-year; adjusted EPS at ₹18.51.

• Board announced a final dividend of ₹3.65 per share, totaling ₹6.40 for the year, subject to shareholder approval.

Outlook and guidance

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

• Planned headcount of 1,050 for FY27, mainly in Generative AI and Analytics.

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

• Investments in AI, sales, and marketing to continue, focusing on AI-led transformation and modernization.

• Emphasis on scalable AI solutions, deeper client engagements, and operational efficiency.