Happiest Minds Technologies (HAPPSTMNDS) Q3 25/26 earnings summary

Executive summary

• Achieved up to 10.7% year-over-year revenue growth in Q3 FY26, with nine-month growth as high as 10.2%, 297 active clients, and 92% repeat business.

• Launched "AI First" as the 11th strategic transformation, embedding AI across workflows and platforms, with 32 GenAI and Agentic AI use cases moving from prototype to production.

• AI-led solutions are central to customer engagements, driving measurable business outcomes and positioning for accelerated growth.

• Recognized for people-first practices, diversity, and as a top employer in India, with 27% gender diversity and presence in 16 countries.

• Over 600 AI specialists and 75%+ GenAI-enabled developers support digital engineering.

Financial highlights

• Q3 FY26 revenue: $65.7M (up to 1.2% sequential, up to 7.1% YoY in constant currency); INR 588 crores (2.4% sequential, 10.7% YoY); nine-month revenue up to $195.2M (up to 10.2% YoY).

• EBITDA: INR 123 crores (20.4% margin, up from 20.2% in Q2); operating margin up to 18%.

• Adjusted PAT for Q3 FY26 at ₹6,992 lakhs; PAT at ₹4,030 lakhs, impacted by a one-time wage code charge of ₹2,203 lakhs.

• Net profit margin at 7% for Q3 FY26; ROCE at 22%, ROE at 12.5%.

• Utilization rate: 82% (highest in recent times); attrition: 17.4% (trailing 12 months), stable.

Outlook and guidance

• Reaffirmed commitment to 10%+ revenue growth in constant currency for the current and next financial years.

• Expecting to provide increased growth guidance above 10% after Q4, driven by AI First strategy and expansion of GenAI team to 1,000 by FY 2027.

• Digital revenues remain above 94% of total, with continued focus on AI, cloud, and digital transformation.

• Management highlights strong pipeline in AI-driven solutions and expects continued growth in BFSI and healthcare verticals.