Happiest Minds Technologies reported a robust Q2 FY27 with a 12.5% year-on-year revenue growth in rupee terms, reaching INR 645 crores. Operating profit saw a 22.5% increase, with margins improving to 18.5%. The company also provided an update on its proposed merger with ITC Infotech, indicating steady progress towards an anticipated completion in October-November of the following year.
Q2 FY27 Financial Highlights
Happiest Minds Technologies Limited announced its financial results for the second quarter and half-year ended September 30, 2026. The company delivered a strong performance with operating revenues for the quarter standing at INR 645 crores, reflecting a sequential growth of 2.7% and a year-over-year growth of 12.5% in rupee terms. In constant currency, revenue grew 2.4% sequentially and 6.8% year-over-year.
Profitability also saw significant improvement. Q2 operating profits reached INR 119 crores, a 9.6% sequential increase and a 22.4% year-over-year growth. Operating margins improved by 100 basis points sequentially to approximately 18.5%, up from 17.5% in Q1. This improvement was attributed to better utilization, operating efficiencies, and cost discipline.
Key Operating Metrics and Customer Growth
The company ended the quarter with 311 active customers, including 95 billion-dollar corporations, up from 92 in the previous quarter. Repeat business increased to 95.1%, highlighting strong customer relationships. Utilization improved to 81.8% from 81% in Q1, while voluntary attrition saw a decrease to 14.3% from 15.4%.
In a notable development, the Board declared an interim dividend of INR 3.05 per equity share of face value INR 2, with November 6, 2026, set as the record date.
ITC Infotech Merger Update
The company provided an update on its proposed combination with ITC Infotech. Steady progress is being made on the merger process, with the company remaining broadly on track with the indicated timelines. The merger is subject to necessary approvals and is anticipated to be completed by October-November of the next year. This combination aims to create a scaled Al-first global technology services enterprise.
Strategic Focus and Outlook
Looking ahead, Happiest Minds’ focus remains on sustaining growth, protecting profitability, and maintaining disciplined capital allocation. The company is investing in capabilities that will shape its future growth, emphasizing AI-led solutions and digital engineering. The strategic priorities include industrializing successful initiatives, strengthening intellectual property, and expanding adoption across customer environments.
Source: BSE
