The shares of the small-cap company, which specializes in digital transformation, offering services like product engineering, Generative AI, infrastructure management, and security, are in focus after management announced its aim to achieve a strong FY26, with AI Services revenue set to double in the next 6 months.
With a market capitalization of Rs. 7,723.38 Crores on Tuesday, the shares of Happiest Minds Technologies Ltd declined by 1.2 percent after making a low of Rs. 506.15 compared to its previous closing price of Rs. 512.50.
Happiest Minds Technologies at a glance
Happiest Minds Technologies Ltd. is an IT company focused on digital transformation, offering services like Product Engineering, Generative AI, and Infrastructure Management. Founded in 2011 and headquartered in Bengaluru, India, the company’s mission is “Happiest People, Happiest Customers”. They serve a variety of industries, leverage disruptive technologies such as AI and cloud computing, and have operations across the globe.
The company provides information technology services and offers big data analytics, cloud computing, networking, engineering, digital solutions, infrastructure, and other managed support services. Happiest Minds Technologies serves customers worldwide.
Guidance
According to the company’s recent conference update, the company has provided strong guidance for FY 26, in which the company expects Revenue from generative AI-led business services to double to $8 million for FY26, which currently stands at $4 million in the first half of the year.
Along with it, the company expects to sustain double-digit revenue growth for the financial year ending March 2026 (FY26), citing a robust deal pipeline and growing traction in generative AI-led services.
The management said the deal pipeline at the end of the second quarter of FY26 was “much higher” than at the start of the year, positioning it well to deliver consistent growth over the next four years, extending its earlier three-year visibility.
Furthermore, Happiest Minds signed 30 net new logos in the first half of FY26, which the company expects will contribute around $50 million in revenue over the next three to four years, and the company remains confident of maintaining margins above 20 percent and an operating margin of above 17 percent for the full year.
Financials & Others
Its Revenue from operations rose by 10 percent YoY from Rs. 522 Crores in Q2FY25 to Rs. 574 Crores in Q2FY26, and it rose by 4.3 percent QoQ from Rs. 550 Crores in Q1FY26 to Rs. 574 Crores in Q2FY26.
Its Net Profit YoY rose by 8 percent from Rs. 50 Crores in Q2FY25 to Rs. 54 Crores in Q2FY26, and it declined by 5 percent QoQ from Rs. 57 Crores in Q1FY26 to Rs. 54 Crores in Q2FY26.
The company shows robust financial health with a ROCE of 15.2% and ROE of 12.6%, indicating efficient use of capital and equity. Its debt-to-equity ratio of 0.78 reflects a balanced approach to leverage. The company maintains a healthy dividend payout of 38.9%, rewarding shareholders consistently.
The company’s revenue is primarily generated from the Americas, contributing 60% of the total. India accounts for 18.3%, Europe 8.1%, APAC 6.4%, and the Rest of the World (ROW) makes up 7.3% of the revenue.
Happiest Minds’ technology revenue is mainly driven by Digital Infrastructure/Cloud at 54%, SAAS contributes 19.7%, AI/Analytics accounts for 11.7%, Security makes up 6.1%, IoT is 3%, and Other technologies cover 5.4% of the revenue.
Written by Sridhar J
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