Revenue rose 12.5% year on year and EBITDA margins improved, but the company did not disclose a separate AI revenue figure as previously indicated.
Happiest Minds Technologies reported higher revenue and improved margins for the quarter ended September 30, but left investors waiting for a separate figure for artificial intelligence business, despite earlier signalling that it would begin disclosing AI and AI-led revenue by the end of the period.
According to the company’s results, revenue came in at ₹645.43 crore, up 12.5% from a year earlier and 2.7% from the previous quarter. In constant currency terms, growth was 6.8% year on year and 2.4% sequentially. Earnings before interest, tax, depreciation and amortisation rose 18.1% to ₹142.04 crore, lifting the EBITDA margin to 21.3% from 20.2% a year earlier. Operating margin improved to 18.5% from 17%, while adjusted profit after tax increased 20.7% to ₹79.11 crore.
The company’s net profit rose 15.1% from the same quarter a year earlier to ₹62.19 crore, although reported profit slipped 8% from the prior quarter and adjusted profit fell 1.8%. Happiest Minds also recorded an exceptional expense of ₹3.98 crore linked to its proposed merger with ITC Infotech. Managing Director Venkatraman Narayanan said the combination was progressing well and remained on schedule, reinforcing the company’s plan to build a larger technology services group.
The strategic tie-up is expected to create a combined workforce of more than 19,000 and support an ambition to reach $1 billion in annual revenue by FY28. Happiest Minds added seven clients during the quarter, taking its total to 311, while headcount stood at 6,466 employees as of September 30. Trailing 12-month attrition eased to 14.3% from 15.4% in the previous quarter, and utilisation improved to 81.8% from 80.9%, suggesting firmer demand and better deployment of staff.
The board also declared an interim dividend of ₹3.05 per equity share for FY27, with November 6 set as the record date. The omission of a distinct AI revenue line will likely draw scrutiny, given the company’s earlier commitments to quantify that business more clearly as it sought to position itself around generative AI and related services.
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