Happiest Minds reported a 79.9% increase in its net profit in the fourth quarter of FY26 which stood at Rs 61.17 crore. This was due to increase in revenue, higher margins and better utilization of AI-based services. Compared to the previous quarter, profit increased by 51.8%. This small Bengaluru-based IT services company reported revenue of Rs 604 crore for the March quarter, which is 10.9% higher than the same quarter last year and 2.8% higher than the previous quarter. In stable currency terms, total revenue increased by 6.4% compared to the previous year.
For the entire financial year, Happiest Minds recorded a revenue of Rs 2,315 crore, which is 12.3% more than last year. In stable currency terms, annual revenue grew by 9.2%, slightly below the estimate of 10%. Operating margin for the fourth quarter was 17.5%, which remained stable compared to the same quarter last year.
The company has estimated annual revenue growth of 12.7% for FY27, including an ‘ambitious target’ of 15%.
Happiest Minds Managing Director Venkatraman Narayanan said that the company’s pipeline has grown by 27%, which includes deals spanning multiple quarters and multi-years, which gives him increased confidence about the future of FY27. Happiest Minds added 10 new customers in the March quarter, taking its total for the year to 306.
Great growth in AI segment
Revenue from its generative AI business segment more than doubled, an increase of 120% compared to last year. After this, there was a growth of 18.5% in the Infrastructure Management and Security Services segment, which strengthened the growth in the total revenue of the company. The budget required for AI transformation exceeds customers’ ability to spend. Yet Joseph Anantharaju, co-chairman and CEO of Happiest Minds, said customers are expecting increased productivity from AI tools and are using those savings to fund AI projects, ET reported.
He further said that there is more pressure to optimize and automate the operational part of the business, so that the budget can be used for other purposes. The company does not separately report earnings from AI; He says that AI has been incorporated in all verticals and segments, which helps in increasing market share and margins.
The company is working on AI
Anantharaju further said that we do not hesitate at all in making people aware to adopt AI and showing its benefits to customers in development, testing and customer support. Because of this, in some cases, we are also able to monetize our internal teams or other partners.
At the end of March, the total number of employees in the company was 6,497, which was 6,632 a year ago. The attrition rate in the last 12 months stood at 17%, while the employee engagement rate improved to 81.4% from 77.4% a year ago. Talking about recruitment, Anantharaju said that the company is planning to hire 750 to 1,000 new employees in the next few years. Most of these recruitments are expected to be at the experienced level, as the company is expanding its AI and digital engineering projects. Recruitment of freshers is expected to be less, as the company’s main focus is on improving the engagement rate of its employees.
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