Happiest Minds Q1 FY26 Results: 21.4% EBITDA Margin

The headline numbers from Q1 FY26

Happiest Minds Technologies Limited (NSE: HAPPSTMNDS) announced consolidated financial results for the quarter ended June 30, 2025, after approval by its Board of Directors. The company reported operating revenues of US$14.4 million for the quarter. In constant currency terms, the company disclosed revenue growth of 2.3% quarter-on-quarter and 17.5% year-on-year. The update positions the quarter as a relatively strong one on growth and operating profitability metrics that the company highlighted. It also comes amid a broader backdrop of a “year of transition” for the Indian IT services industry, as described in the included market note.

Total income and revenue: what changed sequentially

For the quarter ended June 30, 2025, total income stood at ₹579.93 crore (₹57,993 lakhs). The company indicated this was up 1.7% quarter-on-quarter and 18.5% year-on-year. A separate results table in the provided data also shows “Total Revenue” at ₹549.90 crore for Jun 2025, compared with ₹604.08 crore for Mar 2026 and ₹463.82 crore for Jun 2024. In dollar terms, operating revenues were stated at US$14.4 million, reflecting 2.3% quarter-on-quarter growth and 15.9% year-on-year growth.

EBITDA and margin: 21.4% within guided range

Happiest Minds reported EBITDA of ₹124.05 crore (₹12,405 lakhs) for the quarter. The company stated the EBITDA margin was 21.4% of total income. It also disclosed EBITDA growth of 12.9% quarter-on-quarter and 6.3% year-on-year. Separately, a transcript excerpt reiterated that the company was “back to 21.4” margin for the quarter, and that profit margin percentage was within an estimated 20% to 22% range on total income.

PAT, adjusted PAT and EPS metrics

Profit after tax (PAT) for the quarter was reported at ₹57.13 crore (₹5,713 lakhs). The company said PAT was 9.9% of total income, with 68% growth quarter-on-quarter and 12% year-on-year. It also reported adjusted PAT of ₹68.62 crore (₹6,862 lakhs), described as adjusted only for non-cash charges and exceptional items. Adjusted PAT was stated at 11.8% of total income and up 19.1% quarter-on-quarter. Adjusted EPS was reported at ₹4.55.

Operating expense line items referenced in the results table

In the “Quarterly - Happiest Minds Technologies Q1 Results” table included in the note, total operating expense for Jun 2025 was ₹478.24 crore versus ₹518.60 crore for Mar 2026. Depreciation and amortization was listed at ₹22.36 crore for Jun 2025. Operating income in that table was ₹71.66 crore for Jun 2025 and net income ₹57.13 crore, aligning with the PAT figure provided elsewhere in the same dataset. The same table also listed diluted normalized EPS at ₹3.79 for Jun 2025.

Client additions and customer base

As of June 30, 2025, Happiest Minds said it served 285 clients. The company added 17 new clients during the quarter, as per the press release text included. Client metrics are often a closely watched indicator in IT services because they help explain whether revenue growth is broad-based or concentrated.

Quarterly trend snapshot from the provided “Net Sales” table

The dataset also included a separate quarterly snapshot (figures in ₹ crore) showing net sales and profitability across five quarters, ending Mar 2026. While this table is presented separately from the Q1 FY26 press-release highlights, it offers a quick view of how net sales and operating profit have moved across the period.

Stock and valuation snapshot mentioned in the note

The provided text includes multiple market snapshots at different timestamps. One line states the current share price of Happiest Minds Tech. as ₹365.6. The same note reports a market capitalisation of ₹5,567.17 crore, calculated based on the latest share price. Another market line shows an NSE quote of ₹386.25, up ₹20.65 (5.65%) at 09:54 AM. Separately, the dataset also shows quotes around ₹346.15 on NSE and ₹346.60 on BSE with an update timestamp of Wed 24 Jun, 2026, along with an intraday range of ₹342.50 to ₹348.25.

Market impact: what investors can objectively take away

From the disclosed results, the most direct markers are the combination of constant-currency growth (17.5% year-on-year) and an EBITDA margin of 21.4%. The quarter’s total income of ₹579.93 crore and EBITDA of ₹124.05 crore provide an earnings base that investors can compare with prior quarters shown in the tables. PAT of ₹57.13 crore and adjusted PAT of ₹68.62 crore show the difference between reported profitability and the adjusted measure highlighted by the company. The client count of 285, with 17 additions in the quarter, gives an operational datapoint that sits alongside the financial outcomes.

Why this Q1 FY26 update matters

The results combine three elements that are typically tracked together in IT services: growth, margins, and client additions. The company explicitly described its margin outcome as being within a guided range of 20% to 22% on total income. It also highlighted that revenue growth was measured in constant currency as well as in reported US dollar terms. This mix of reporting helps investors separate business momentum from currency movement.

Conclusion

Happiest Minds’ Q1 FY26 (quarter ended June 30, 2025) update reported total income of ₹579.93 crore, EBITDA of ₹124.05 crore at a 21.4% margin, and PAT of ₹57.13 crore. The company also reported operating revenues of US$14.4 million and a client base of 285 after adding 17 clients in the quarter. The next actionable reference point for investors will be subsequent quarterly disclosures that show whether the growth rates and margin band highlighted in this release are sustained.

Key results table (as stated in the provided data)