Happiest Minds Technologies’ Generative AI Business Services revenue grew nearly 50% sequentially in Q3 FY26. However, the IT services company did not disclose a separate AI revenue figure in its Q2 FY27 results, despite previously indicating that it planned to report AI and AI-led revenue by the end of Q2 FY27.
The company reported revenue of ₹645.43 crore for the quarter ended September 30, up 12.5% year-on-year (YoY) and 2.7% quarter-on-quarter (QoQ). Revenue growth in constant currency terms stood at 6.8% YoY and 2.4% QoQ.
Happiest Minds reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹142.04 crore, up 18.1% YoY. EBITDA margin improved to 21.3% from 20.2% a year earlier. Operating margin increased 22.4% to ₹119.11 crore, while the operating margin percentage rose to 18.5% from 17%.
Net profit increased 15.1% YoY to ₹62.19 crore. Adjusted profit after tax (PAT), which excludes exceptional items and amortisation of intangible assets, grew 20.7% to ₹79.11 crore. Sequentially, however, reported PAT declined 8% and adjusted PAT fell 1.8%. EBITDA grew just 0.5% QoQ, against revenue growth of 2.7%.
The company incurred an exceptional expense of ₹3.98 crore towards its proposed merger with ITC Infotech during the quarter.
Happiest Minds Managing Director Venkatraman Narayanan said, “The proposed combination with ITC Infotech is progressing well and remains on track with our targeted timelines.”
The combined entity is expected to have a workforce of more than 19,000 employees, with an aspiration to generate $1 billion in annual revenue by FY28.
Happiest Minds added seven clients during the quarter, taking its total to 311 as of September 30. Its workforce stood at 6,466 employees. Trailing 12-month attrition declined to 14.3% from 15.4% in the previous quarter, while utilisation improved to 81.8% from 80.9%.
Happiest Minds’ board declared an interim dividend of ₹3.05 per equity share, with a face value of ₹2 for FY27. November 6 is the record date.
