Happiest Minds Technologies (HAPPSTMNDS) Q1 25/26 earnings summary

Executive summary

• Achieved 17.5% year-over-year growth in constant currency for Q1 FY26, with EBITDA margin at 21.4% and strong profitability despite industry headwinds.

• 285 active customers, including 85+ Fortune 2000/Forbes 200 corporations, with 17 new clients added in Q1.

• Repeat business remained robust at 93.7–94%, indicating strong customer loyalty and stable growth.

• Recognized for workplace excellence and innovation, with multiple awards and analyst recognitions in 2023–2025.

• Key project wins and large-scale digital transformation projects secured across multiple sectors.

Financial highlights

• Q1 FY26 revenue: $64.4 million, up 2.3% sequentially and 17.5% year-over-year in constant currency.

• Total income in rupees was ₹58,000 crores, up 18.5% year-over-year.

• EBITDA for Q1 FY26: ₹12,405 lakhs, margin at 21.4%, up 12.9% sequentially and 6.3% year-over-year.

• Adjusted EPS for the quarter was ₹4.55; utilization reached 78.9%, the highest in nine quarters.

• PAT was ₹5,713 lakhs, up 68% sequentially and 12% year-over-year; adjusted PAT at ₹6,862 lakhs.

Outlook and guidance

• Targeting double-digit growth in constant currency for FY26, with EBITDA margin guidance maintained at 20–22%.

• H2 expected to outperform H1, barring typical Q3 seasonality; strong order book and pipeline across verticals.

• Focus on digital transformation, agile delivery, and expansion in next-gen digital services.

• Emphasis on profitable growth, ESG excellence, and world-class team development.

• Billion-dollar revenue target for FY31 remains, but growth assumptions are under review due to changing market conditions.