Happiest Minds Technologies (HAPPSTMNDS) Q3 24/25 earnings summary

Executive summary

• Achieved 28.5% year-over-year revenue growth, the best since IPO, with EBITDA margin at 21.1% and ROCE at 21.8%.

• Growth driven by strong deal momentum, successful integration of PureSoftware and Aureus acquisitions, and launch of Generative AI Business Solutions.

• 95% of business is repeat, with 278 active clients and 85 Fortune 2000/Forbes 200 customers.

• Recognized among India's top workplaces and for diversity and inclusion initiatives, with multiple global awards.

Financial highlights

• Q3 revenue at $62.7 million (₹53,081 lakhs), up 27.5%-28.2% YoY and 0.9% QoQ; EBITDA at ₹11,686 lakhs (21.1% margin); PAT at ₹5,010 lakhs (9.0% margin).

• Operating margin at 17.5%-18%; gross margin at 36.5%.

• Free cash flow conversion at 95.7%-97.5% in Q3; cash and equivalents at ₹1,70,380 lakhs.

• Nine-month revenue at ₹1,59,100 lakhs, up 25.6%; EBITDA at ₹35,240 lakhs (22.1% margin).

• Cash EPS for the quarter at ₹6.16, up 12.6% YoY; annualized cash EPS at 25%.

Outlook and guidance

• Margins expected to close the year within 20%-22% guidance; nine-month EBITDA margin at 22.1%.

• Revenue growth forecasted at 30%-35% for the year, aiming for 30% in constant currency.

• Double-digit organic growth targeted for next year, with transformational initiatives and GenAI expected to drive acceleration.

• Focus on digital transformation, cloud, AI, and security services.