Mid-tier IT services firm Happiest Minds Technologies on Friday reported a 51.7% growth in consolidated net profit to Rs 61.17 crore for the fourth quarter of FY26, up from Rs 40.3 crore in the previous quarter. The Bengaluru-based company’s AI-focused programme, announced in the last quarter, generated significant growth in deal momentum, while also expanding its operating margins.
The company’s revenue from operations also increased 2.8% sequentially to Rs 604.08 crore from Rs 588 crore in the third-quarter of FY26. Meanwhile, on a yearly basis, the firm’s consolidated net profit jumped 79.9% during the quarter, rising from Rs 34 crore in the same quarter last year. On the other hand, the firm’s total revenue grew 10.9% from Rs 544.57 crore posted a year ago. Operating margins increased 5.3% q-o-q to Rs 106.21 crore from Rs 85 crore in the previous quarter.
Growth fuels optimism
“We have shown sequential growth in revenues every quarter since our IPO, which is no mean feat. On the back of our improved utilisation of 81% vis-à-vis last year of 77.4%, we have delivered industry leading operating margins of 17.4%, well within our guided range. With our investments of the previous years paying off and based on expected growth of 12.5% in constant currency for the next year, we are planning to improve our margins by at least 100 basis points. On the back of a robust balance sheet and healthy cash flows, we remain well-positioned to continue our investments in our AI-first strategy to deliver sustainable long-term value. We are pleased to announce a final dividend of ₹3.65 per share, subject to shareholder approval,” Venkatraman Narayanan, managing director, Happiest Minds, said in a release.
The company said its advanced AI revenue will be revealed over the next quarter. “We are probably the only company to start a generative AI business unit (GBS) a year ago, which is looking into AI innovation completely grounds up,” Narayanan added.
Chairman Ashok Soota reiterated the company’s guidance of 12.5% growth for FY27, while also adding that Happiest Minds is striving to achieve its goal of 15% growth.
“We are excited about our strong performance for FY26, surpassing 300+ active customers and achieving a record pipeline increase of 27%. The education segment is being transformed by GenAI, which will lead to opportunities and revival of the EdTech vertical. In addition to the success of the Arttha banking platform, our Eduweave solution already has live customers and a good set of prospects. We expect many of our other platforms to drive repeatable sales and solutions,” Joseph Anantharaju, co-chairman & CEO of the company, said in a release.
BFSI remains dominant
In terms of the vertical segments, the company’s BFSI remained the largest contributor with 26.8% for the quarter, with the healthcare segment making up 17.9% of revenue. The edtech segment came third, contributing 16.3% of revenue, and hitech was fourth with 11.1% revenue contribution.
Geographically, the revenue contribution from the US market slowed down to 58.2% for the quarter compared to 59.8% in the previous quarter. Revenue from the Indian market also slowed marginally to 17.1% in the fourth-quarter from 17.3% posted a quarter ago. Meanwhile, revenue contribution from Europe grew by 8.3% in the quarter from 7.2% in the last quarter. For the APAC region, revenue contribution stood at 7.6% for the quarter, up slightly from 7.4% in the last quarter.
Anantharaju also noted that the company’s GCC segment is expected to see decent growth with more attention being brought to it.
The company’s headcount stood at 6,497 for the quarter, while trailing 12-month attrition of 17%.