Happiest Minds | Management Interview
- Hope to hit 30% revenue for FY25 given Middle East consolidation & organic growth
- Management added that the demand environment is more optimistic post the US election.
Watch here -
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Happiest Minds - Not so Happy 
Happiest Minds | Management Interview
- Our U.S. customers are keeping a close watch on tariff headlines.
- However, not seeing any hunkering down on spends so far
- Client mood amidst growing stagflation fears in the US.
- 30% growth aspiration for FY25 looks “challenging” given some deal consolidation delays.
After latest results what is community view? Are they still sticking to guidance of US 1 billion by FY31? How are they going to achieve this with just double digit growth over next 3-4 years?
Key concall highlights
The global IT industry faces mixed macroeconomic and geopolitical uncertainties, but demand remained strong in the verticals of BFSI and healthcare, with early signs of some demand in technology, media, entertainment, and manufacturing.
During the quarter, the company’s business unit, i.e, Infrastructure & Security Services (IMSS), as a ramp-up of a large deal, got postponed to Q3, and another customer engagement paused a new proposal. In the Edtech business vertical, it sees new opportunities in helping universities manage the student lifecycle with Gen AI, having recently closed a multi-million dollar deal with a leading management institute in Asia. Manufacturing and retail space continued to perform well as Happiest Minds signed new logo wins in Europe’s retail CPG space and an increase in projects from a large manufacturing client in India, while Healthcare & Lifesciences was supported by AI-driven compliance and
database migration programs. Lastly, High Tech and Media continue to benefit from GenAI-based campaign management and AdTech optimisation.
The GenAI business unit led growth this quarter, growing 15.3% QoQ and 77.8% YoY. The company has successfully scaled up 22 transformative AI/Gen AI use cases into replicable projects, which have the potential of $15 Mn over the next 3-4 years.
Attrition moderated to 17.4% vs 18.2% in Q1FY26. The company is implementing employee engagement and training programs to improve retention.
Headcount stood at 6,554 with a net addition of 31 employees during the quarter. Happiest Minds plans to ramp up hiring in H2FY26.
On Pricing and AI Productivity, the company is commanding a 20%to 25% pricing premium on its GenAI-based projects compared to its standard rate card. In traditional fixed-price projects, Happiest Minds proactively uses AI to enhance productivity. It shares a portion of these benefits with clients while retaining a part to cover the costs of tools and training.
In terms of order book and pipeline, there is healthy growth across multiple geographies and verticals, with 30 new clients added in H1FY26, contributing $9 Mn in revenue, and a projected potential of $ 50-60 Mn over the next 3 years. Overall pipeline seen 20-25% higher QoQ, led by new clients and GenAI businesses. Overall, H2FY26 is expected to be better than H1FY26, considering Q3 seasonality, minimally impacted by furloughs in Q3FY26.
The company’s subsidiary, PureSoftware (banking platform “Arttha”), and Aureus Tech Systems (insurance domain) delivered cross-selling synergies. Arttha banking platform implemented on two Indian cooperative banks, while Aureus created an Insurance-in-a-Box platform where this product was launched with pre-committed customers in Africa on a five-year, ARR-based model.
The Management raised its commitment from 3 to 4 consecutive years of double-digit growth through FY28, driven by the GBS unit and new net engines. The company also targets a double-digit constant currency growth target for FY26, backed by organic expansion, with no significant M&A closure expected in
the near term. It aims to maintain an EBITDA margin of 20%-22% (including other income) in FY26 despite ongoing investments, with a focus on maintaining utilisation at current levels of 80.7% the highest level in over the last three years.
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