NEW DELHI, May 29: IT firm Happiest Minds Technologies on Friday reported a 79.9 per cent growth in consolidated net profit to Rs 61.17 crore in the January-March quarter of FY26, primarily on the back of improved employee utilisation and a resulting expansion in operating margins.
The company had posted a net profit of Rs 34 crore in the corresponding quarter of FY25, according to regulatory filings.
Revenue from operations grew 10.9 per cent to Rs 604.08 crore during the quarter under review, as compared to Rs 544.57 crore in the year-ago period.
Seen sequentially, profit and revenue rose 51.7 per cent and 2.8 per cent, respectively.
Employee utilisation improved to 81.4 per cent in the quarter under review, up from 77.4 per cent in the corresponding period last year. As of March 31, 2026, the company has 6,497 employees.
The company’s operating margin grew by 30.7 per cent year-on-year to Rs 106.21 crore in Q4 FY26, compared to Rs 81.25 crore in Q4 FY25. As a percentage of revenue, the operating margin expanded to 17.5 per cent from 14.9 per cent in the year-ago period.
“On the back of our improved utilisation…we have delivered industry-leading operating margins of 17.4 per cent well within our guided range. With our investments of the previous years paying off and based on expected growth of 12.5 per cent in constant currency for the next year, we are planning to improve our margins by at least 100 basis points.
“On the back of a robust balance sheet and healthy cash flows, we remain well-positioned to continue our investments in our AI-First strategy to deliver sustainable long-term value. We are pleased to announce a final dividend of Rs 3.65 per share, subject to shareholder approval,” Happiest Minds Managing Director Venkatraman Narayanan said.
For the full fiscal year ended March 31, 2026, Happiest Minds’ net profit stood at Rs 212.62 crore, about 15 per cent higher than Rs 184.66 crore in the preceding fiscal.
FY26 revenue came in 12.3 per cent higher at Rs 2,315.11 crore.
Among industry verticals, Banking, Financial Services and Insurance (BFSI) remained the largest contributor to the company’s revenue, expanding its share significantly to 26.1 per cent in FY26 from 22.5 per cent in FY25.
Healthcare emerged as the second-largest vertical, accounting for 17.1 per cent of the total revenue, up from 16.3 per cent in the previous fiscal.
Conversely, the revenue share from the Edutech sector witnessed a year-on-year decline, dropping to 15.6 per cent in FY26 from 18.7 per cent in FY25.
Geographically, the United States continued to be the dominant market for the company, although its overall contribution to total revenue moderated to 59.3 per cent in FY26 compared to 64.6 per cent in FY25.
Meanwhile, India saw its revenue share increase to 17.6 per cent in FY26 from 15.6 per cent in the preceding financial year.
The Asia-Pacific (APAC) region also saw a year-on-year increase, contributing 7.2 per cent to the FY26 revenue, up from 5.3 per cent in FY25.
“The education segment is being transformed by GenAI, which will lead to opportunities and the revival of the EdTech vertical. In addition to the success of the Arttha banking platform, our Eduweave solution already has live customers and a good set of prospects, and we expect many of our other platforms to drive repeatable sales and solutions,” Joseph Anantharaju, Co-Chairman & CEO, Happiest Minds, said.
Shares of Happiest Minds were trading 0.11 per cent higher at Rs 378.85 apiece in early-day trade on the BSE on Friday. (PTI)
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