Happiest Minds Q2 revenue rises 12.5%, margin reaches 18.5%

Happiest Minds Technologies Limited reported Q2 FY27 revenue of Rs 645.43 crore, up 12.5% year on year, while operating margin rose 22.4% to Rs 119.11 crore and the margin rate reached 18.5% for the quarter ended September 30, 2026. The company added seven clients and reported lower attrition during the period.

How did Happiest Minds perform in Q2 FY27?

Happiest Minds generated revenue of Rs 645.43 crore in Q2 FY27, compared with Rs 573.57 crore in Q2 FY26 and Rs 628.51 crore in Q1 FY27. Reported revenue therefore increased 12.5% year on year and 2.7% quarter on quarter. In constant currency, revenue grew 6.8% year on year and 2.4% sequentially, while operating revenue in US dollar terms was US$67.4 million.

Total income reached Rs 665.99 crore in the September 2026 quarter, up 11.9% from Rs 595.18 crore a year earlier and 2.1% from Rs 652.20 crore in Q1 FY27. Other income was Rs 20.56 crore, below Rs 23.69 crore in the preceding quarter, while quarterly revenue rose by Rs 16.92 crore. The company had 311 clients as of September 30, 2026, following seven additions in Q2 FY27.

Why did Happiest Minds’ operating margin increase?

Happiest Minds’ operating margin increased to Rs 119.11 crore in Q2 FY27 from Rs 97.33 crore in Q2 FY26, a 22.4% rise that was faster than the 12.5% increase in revenue. The operating-margin rate rose by 1.5 percentage points to 18.5% from 17.0% a year earlier. It was also above the 17.5% rate reported in Q1 FY27, when operating margin was Rs 108.68 crore.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, was Rs 142.04 crore, compared with Rs 120.27 crore in Q2 FY26 and Rs 141.29 crore in Q1 FY27. The EBITDA margin was 21.3%, up from 20.2% a year earlier but below 21.7% sequentially. Happiest Minds reported Rs 10.55 crore of amortisation and unwinding interest, which it describes as non-cash items related to acquisitions.

What happened to Happiest Minds’ profit in the quarter?

Happiest Minds reported profit after tax, or PAT, of Rs 62.19 crore in Q2 FY27, up 15.1% from Rs 54.02 crore in Q2 FY26 but down 8.0% from Rs 67.60 crore in Q1 FY27. Profit before tax was Rs 83.53 crore, down 7.4% sequentially from Rs 90.20 crore. Finance cost increased to Rs 30.86 crore from Rs 28.46 crore in the preceding quarter.

Adjusted PAT was Rs 79.11 crore, up 20.7% from Rs 65.52 crore a year earlier and down 1.8% from Rs 80.52 crore in Q1 FY27. Happiest Minds calculates adjusted profit before tax and adjusted PAT by adding back exceptional items and amortisation of intangible assets. Q2 FY27 included an exceptional item of Rs 3.98 crore for the proposed merger with ITC Infotech, while adjusted earnings per share were Rs 5.25 compared with Rs 4.46 in Q2 FY26.

What do Happiest Minds’ client and employee measures show?

Happiest Minds had 6,466 employees as of September 30, 2026, and trailing 12-month attrition declined to 14.3% from 15.4% in the previous quarter. Utilisation increased to 81.8% from 80.9% in Q1 FY27. Those measures were reported alongside seven client additions, which brought the customer count to 311.

The Q2 FY27 wins covered AI-led technology, cloud engineering, data and analytics, managed services, connected vehicles and manufacturing systems. They included a strategic AI-led engagement to establish and scale a Bengaluru global capability centre for a digital asset management platform company, plus Azure administration, infrastructure automation, cloud networking and observability work for a global electronics distributor. Happiest Minds also cited a multi-year managed-services engagement with a US skincare, beauty and personal-care manufacturer.

What does Happiest Minds’ first-half performance show?

Happiest Minds reported HY 27 revenue of Rs 1,273.94 crore, up 13.4% from Rs 1,123.47 crore in HY 26. First-half operating margin rose 17.1% to Rs 227.78 crore from Rs 194.55 crore, while the operating-margin rate increased to 18.1% from 17.3%. Total income for HY 27 was Rs 1,318.18 crore, up 12.2% year on year.

Adjusted PAT for HY 27 was Rs 159.63 crore, compared with Rs 134.15 crore in HY 26, an increase of 19.0%, and adjusted earnings per share rose to Rs 10.59 from Rs 8.91. Operating revenue in US dollars was US$133.7 million, up 3.3% year on year, while constant-currency revenue increased 6.7%. The reported rupee revenue growth of 13.4% was therefore higher than the constant-currency growth disclosed for the half year.

Conclusion

The Q2 FY27 result showed revenue growth of 12.5% alongside a 22.4% increase in operating margin, lifting the operating-margin rate to 18.5%. Adjusted PAT grew 20.7% year on year, while the company reported seven client additions, a 1.1-percentage-point decline in attrition and a 0.9-percentage-point improvement in utilisation.

The next disclosed event is the November 6, 2026 record date for the Rs 3.05 per-share interim dividend declared on November 2, 2026. Management said the proposed ITC Infotech combination remains on track with targeted timelines and stated an aspiration for the combined enterprise to achieve US$1 billion in annual revenue by FY28; the release cautions that forward-looking outcomes may differ materially.