Happiest Minds Technologies Ltd (BOM:543227) Q3 2026 Earnings Call Highlights: Steady Revenue …

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Tue, February 10, 2026 at 8:00 PM GMT+9 3 min read

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**Revenue:** INR 588 crores, up 2.43% sequentially and 10.7% year over year.

**Total Income:** INR 604 crores, growing 1.4% quarter over quarter and 8.9% year over year.

**EBITDA:** INR 123 crores, with a margin of 20.4%.

**Operating Margin:** Improved to 17.4%, up 40 basis points sequentially.

**Profit Before Tax:** INR 54.2 crores.

**Profit After Tax:** INR 40.3 crores, impacted by a one-time wage code charge of INR 22.3 crores.

**Adjusted PAT:** 11.6%, compared to 11% in the previous quarter.

**Utilization Rate:** 82%, the highest in recent times.

**DSO (Days Sales Outstanding):** Increased to 92 days from 87 in the previous quarter.

**Headcount:** 6,548 employees.

**Return on Capital Employed (ROCE):** 22%.

**Return on Equity (ROE):** 12%.

**Attrition Rate:** 17.4% on a trailing 12-month basis.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Happiest Minds Technologies Ltd (BOM:543227) reported a year-over-year revenue growth of 10.7% for Q3 FY26, reflecting steady execution.

The company has successfully embedded AI into core workflows and platforms, enhancing customer engagement and execution.

The AI-first strategy is showing tangible results, with 32 generative AI use cases moving from prototype to production.

The company maintained EBITDA margins within the guided range of 20% to 22%, demonstrating disciplined cost management.

The generative AI business services segment saw strong momentum, with revenues growing close to 50% quarter over quarter.

Negative Points

EBITDA margins decreased to 20.4% from 22.2% in the previous quarter, indicating some margin pressure.

The high-tech vertical experienced a decline due to the completion of a product development project and the end of a support contract.

Attrition on a trailing 12-month basis stood at 17.4%, which could indicate challenges in retaining talent.

DSO increased to 92 days from 87 in the previous quarter, highlighting potential issues in collections and billing discipline.

The retail vertical showed a sequential decline, partly due to billing cycle adjustments and project completions.

Q & A Highlights

Q: Are the generative AI deals and services new areas of spend for enterprises, or are they redirecting existing budgets due to new technology? A: Sridhar Mantha, CEO of Generative AI Business Services, explained that initially, generative AI projects were funded by reallocating existing budgets. However, in recent quarters, enterprises have become clearer about their AI roadmaps, integrating these projects into their overall budget plans with defined roadmaps spanning one to three years.

Story Continues  

Q: What are the engagement models for the repeatable platforms mentioned? A: Joseph Anantharaju, CEO of Product Engineering Services, stated that Happiest Minds is exploring multiple engagement models, including subscription or direct license revenue for platforms, fixed-price projects, and outcome-based models. The company is also considering packaging solutions for repeatable delivery to optimize gross margins.

Q: Can you provide more details on the healthcare vertical’s growth and pipeline? A: Joseph Anantharaju highlighted that the healthcare vertical has seen growth across geographies and subsegments, driven by new logos and existing customer ramp-ups. The company is also advancing its healthcare platform, with the multiomic platform ready for market and another platform in the ideation phase.

Q: What is the outlook for the high-tech vertical, which saw a QoQ decline? A: Joseph Anantharaju explained that the decline was due to the completion of a product development project for a startup and the end of a support contract with the Airport Authority of India. He expects revenues to stabilize and potentially grow in the coming quarters.

Q: How is Happiest Minds balancing digital transformation services, AI investments, and profitability? A: Joseph Anantharaju emphasized that the AI-first strategy and its 11 strategic programs are the main focus. Investments will be made in the AI delivery platform and tech debt modernization, with an emphasis on building repeatable AI solutions to drive growth and profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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