For the December 2025 quarter, profit after tax (PAT) declined 19.5% to Rs 40.30 crore, compared with Rs 50.10 crore in the same quarter last year.
Venkatraman Narayanan, Managing Director, said, “We continue to deliver healthy revenue growth and operating and EBITDA margins in line with our commitments. I would like to draw your attention to the adjusted PAT, which, excluding non-cash acquisition costs and the one-time wage code charge, stood at 11.6% in the quarter, compared to 11.0% in the previous quarter. Supported by robust cash flows and a steadfast focus on long-term value creation through our AI First approach, we remain well positioned to drive sustainable growth, profitability and returns for our stakeholders. We plan to double down on our AI and GenAI investments and build a dedicated 1,000-plus team by the end of FY27.”
On a constant currency basis, revenue grew 1.2% quarter-on-quarter and 7.1% YoY, while operating revenue in US dollars reached $65.7 million, up 1.0% quarter-on-quarter and 4.8% YoY.
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EBITDA was Rs 12,283 lakh, maintaining a margin of 20.4%, up 2.1% quarter-on-quarter and 5.1% YoY.
Happiest Minds’ client base stood at 297 as of December 31, 2025, with 11 new additions during the quarter. On the employee front, the company had 6,548 employees, with trailing 12-month attrition of 17.4%, unchanged from the previous quarter. Utilisation improved to 82% from 80.7% in the last quarter.The quarter also saw key strategic wins. For a global FMCG leader in plant-based foods, Happiest Minds implemented GenAI-driven automation to monitor over 14,000 global vendors against sanctions and regulatory watchlists. Additionally, for a top US-based insurance provider, the company is designing an AI roadmap and reference architecture to enable enterprise-wide AI adoption.
On the stock front, Happiest Minds shares closed at Rs 395.85 on the NSE on Monday, up 2.27%. However, over the past year, the stock has declined by 40%. Valuation metrics show a PE ratio of 32.5, price-to-sales ratio of 4.34, and price-to-book ratio of 3.83.
From a technical perspective, the 14-day RSI stands at 35.7, approaching the oversold zone below 30, while the stock is trading below all eight simple moving averages, indicating a bearish trend.
Overall, Happiest Minds’ Q3FY26 results reflect solid revenue growth and stable EBITDA margins, even as profit declined YoY. Strong client additions and AI and automation initiatives highlight potential future growth, while current technical indicators suggest short-term pressure on the stock.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)