Concall transcriptSep 2026
Sep 2026 · Transcript
Source: Bse
Happiest Minds Technologies Limited (HAPPSTMNDS)
Micro CapIT stocks · Micro cap · NSE
Happiest Minds Technologies, an IT services firm, is undergoing a proposed merger with ITC Infotech. This transaction aims to accelerate its vision to become a USD1 billion revenue company by FY28, creating a larger, more diversified entity with expanded capabilities and market reach.
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals14 Oct 2026 · screener
Latest result28 Jul, 01:29 am IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · IT P/E 21.4 (n=204)
Technical timing lens
Trend score and candlestick chart
56Neutralfull bear SMA stack · SMA20 -14.3% / mo · MACD + · near 52W low · sector +19.3pp vs Nifty 500 (3M)
Stock trend: 26
Sector RS: 100
Sector 3M: +13.7% vs Nifty 500 -5.6%
IT FPI tailwindBuilding
Latest FPI flow is positive, but a second consecutive positive fortnight is still required. View sector evidence
Technical chart
HAPPSTMNDSD candles · FIT view-17.0%Latest close ₹311.95 on 2026-10-21
Bar
-3.8%
RSI
41
MACD hist
4.29
52W pos
6%
2026-10-21O ₹324.20H ₹327.90L ₹309.00C ₹311.95Vol 5.7L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
HAPPSTMNDSNifty ITNifty 500
- HAPPSTMNDS
- -17.1%
- Nifty 500
- -6.5%
- Nifty IT
- +12.0%
- Vs Nifty 500
- -10.6 pp
Chart stats
21 Oct 2026- From 52W high
- -41.3%
- 52W range position
- 6%
- ATR (14)
- 4.1%
- Volume vs 20D
- 0.83x
- Avg traded value
- ₹21.9 Cr
- 20D price channel
- ₹299 - ₹349.6
₹531
₹299 - ₹531
₹12.7
Latest completed session
20-session average
30.3% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend is neutral, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · WATCHLIST35
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Good55
Revenue +14.4% · PAT +19.3% YoY
Technical
Neutral56
Price trend and sector-relative-strength timing.
Valuation
Legacy model-29.8%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence70
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Good · 55/100Rev +14% YoY · PAT +19% YoY · margin expansion
Filed 27 Jul 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹629 Cr | +14.4% | +4.1% |
| EBITDA | ₹118 Cr | +25.5% | +13.5% |
| Operating margin | 19.0% | +200 bps | +200 bps |
| PAT | ₹68 Cr | +19.3% | +11.5% |
| PAT margin | 10.8% | +45 bps | +71 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 20.80
- P/B
- 2.88
- EV/EBITDA
- 12.37
- Market Cap
- 4878.00Cr
Profitability
- ROE
- 13.80%
- ROCE
- 13.30%
- ROA
- 6.22%
- Dividend Y
- 2.00%
Growth (CAGR)
- Revenue 5Y
- 25.00%
- EPS 5Y
- 7.00%
- Revenue 3Y
- 17.00%
- EPS 3Y
- -1.00%
Balance Sheet
- Debt/Equity
- 0.88
- Interest Coverage
- 4.23×
- Altman Z
- 3.42
- Book Value
- 111.00
Cash Flow
- FCF Yield
- 2.95%
- FCF Positive Y
- 4/5
- OCF
- 261.00 Cr
- EPS TTM
- 14.66
Shareholding
- Promoter Hold
- 44.21%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 9%
Financial History
Updated 21/10/2026
Revenue
₹ CrLatest: 629+4.1% vs prev
Net Profit
₹ CrLatest: 68.0+11.5% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 41.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~16.7% over last month) — short-term momentum negative.
- RSI(14) at 41 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
19
RS percentile
Stage 4 Downtrend
1M return
-1.8%
3M return
-17.1%
6M return
-16.6%
1Y return
-40.3%
RS 1D
-1
RS 20D
+9
Sector rank
#7
Industry rank
#37
Stage evidence
- Price is 14.7% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -2.0%.
- Both 3-month and 6-month returns are negative.
50-DMA
price below
200-DMA
price below
Sector
improving
Industry
improving
Relative-strength line vs Nifty 500 (base 100)
262 observations
21 Oct 2026Value 61.2-2.31%
RS vs Nifty 50061
Valuation & peers
U-Score 35 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
Valuation & peers
U-Score 35 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
WATCHLIST
Fundamental score breakdown
U band · WATCHLISTValuation1/30
Growth10/25
Quality6/20
Balance Sheet6/15
Cash Flow6/10
Piotroski
8/9 (+5)
Penalties
1
Raw sum
35
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
35/100 · legacy band WATCHLIST
Positive drivers
- Piotroski is strong at 8/9.
- Cash flow contributes 6/10 to the score.
- Growth contributes 10/25 to the score.
Main drags
- Fair-value margin of safety is negative at -29.8%.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
- Quality is weaker at 6/20; verify the latest quarterly trend.
Sector valuation model
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Primary lens
PE and EV/EBITDA relative to revenue growth, margins, and cash conversion.
Secondary checks
Deal pipeline, attrition, dollar revenue growth, FCF yield.
Main risk check
Low PE can reflect weak growth or margin pressure.
PE
20.8
PB
2.9
EV/EBITDA
12.4
ROE
13.8%
ROCE
13.3%
FCF Yield
3.0%
Debt/Equity
0.9
MoS
-29.8%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
35
Previous: 35
Legacy U-Score band
WATCHLIST
Previous: WATCHLIST
Margin of safety
-29.8%
Previous: -34.1%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
35
35
35
35
35
35
35
35
35
35
35
35
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹191.35
-63.0% MoS
Growth-justified P/E
16.4
Growth-justified Value
₹240.42
-29.8% MoS
PEG
2.97
Comparable companies
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
SOTL
Small
Savita Oil Technologies Limited
IT Services / Digital
match 162
37
12.0
8.3%
-187%
WATCHLIST
MAPMYINDIA
Large
C.E. Info Systems Limited
IT Services / Digital
match 161
38
36.7
12.0%
-8%
WATCHLIST
DATAMATICS
Small
Datamatics Global Services Limited
IT Services / Digital
match 160
55
18.1
16.0%
+34%
FAIR VALUE
SHILCTECH
Small
Shilchar Technologies Limited
IT Services / Digital
match 159
59
33.6
37.8%
-0%
FAIR VALUE
WELSPLSOL
Small
Welspun Specialty Solutions Limited
IT Services / Digital
match 159
30
122.0
4.8%
-252%
OVERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis under stressReviewed 2026-10-19T07:14:34.947Z
Management commentary snapshot
Happiest Minds announces proposed merger with ITC Infotech, targeting USD1 billion revenue by FY28 and significant scale-up.
The proposed merger with ITC Infotech fundamentally alters Happiest Minds' standalone investment thesis. While aiming for significant scale and accelerated revenue targets, the combined entity introduces new integration risks, governance structures, and a re-evaluation of valuation metrics. The success hinges on disciplined execution of integration and synergy realization.
Growth engines
Cross-selling Complementary Capabilities
Take Happiest Minds' AI, data, digital engineering, cybersecurity into ITC Infotech's enterprise relationships; offer ITC Infotech's SAP, PLM, infrastructure, enterprise applications to Happiest Minds' customers.
Participation in Larger Transformation Programs
Strengthens our ability to participate in larger, more strategic transformation programs due to broader capabilities and greater execution scale.
Expanded Partner Ecosystem
Expanded partner ecosystem, including Microsoft, SAP, ServiceNow, PTC, Google, Amazon, various AI companies, and leading cybersecurity providers, strengthens ability to deliver integrated solutions.
AI at Scale
Combine Happiest Minds' digital AI and generative AI with ITC Infotech's physical and plant AI capabilities to help enterprises move from AI experimentation to AI at scale.
Tailwinds
Structural Shift in Technology Services
AI is becoming central to enterprise technology investment, clients focused on measurable business outcomes, and vendor consolidation is accelerating.
Demand for Broader Capabilities
Larger transformation programs require broader capabilities and greater execution scale, which the combined entity can offer.
Risk radar
Integration Execution
Realizing opportunities will require disciplined execution; an integration plan will be developed to ensure smooth transition.
Leadership Continuity and Employee Retention
Need to ensure continuity of key leadership and retain all people, especially sales teams, during the 15-month transition period.
Regulatory and Shareholder Approvals
The proposed transaction remains subject to applicable regulatory (CCI, NCLT), shareholder, and statutory approvals.
Realizing Synergies
Meaningful opportunities for value creation from cross-selling and operating efficiencies require disciplined execution.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
The document focuses on pro-forma FY26 numbers for the combined entity, establishing a new baseline. Future targets are also provided, making both historical (pro-forma) and forward-looking comparisons relevant for assessing the impact of this transformative merger.
Sector KPIs management disclosed
Pro-forma FY26 Revenue
On a FY26 pro-forma basis, the two businesses generated approximately INR7,033 crores in revenue.
Pro-forma FY26 EBITDA Margin
Operating margins of a similar number expected to be around 18.3% plus. Combined entity at 18.1% for FY26 (ITC Infotech 18.3%, Happiest Minds 17.3%).
Combined Professionals
We will have more than 19,000 professionals.
Combined Customers
Together we will serve more than 800 customers across industries and geographies.
Management forward view
Accelerated Revenue Target
Transaction significantly accelerates our vision of becoming USD1 billion revenue Company, moving our target from FY31 to FY28.
Maintain Business Momentum
Immediate priorities are to maintain business momentum at Happiest Minds, ensure continuity for all stakeholders, and progress through the merger process.
Focus on Cross-selling Post-Approval
Once CCI approval is received, focus will be on exploring joint GTM opportunities, cross-selling, and leveraging each other's capabilities.
Commitment to Employee Retention
Both sides committed to ensuring retention of all people to deliver value to customers, as deep strengths and complementary areas are key to the transaction.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| CCI Approval | Expected in Q3 of this year (2026). | Confirmation of Competition Commission of India approval to proceed with integration planning. |
| Shareholder Approval for Merger | Expected in Q1 of FY28. | Approval from shareholders for the scheme of merger, a key step before NCLT and final listing. |
| Listing of Combined Entity | Expected in Q2/Q3 of FY28. | Successful listing of the combined ITC Infotech entity on BSE and NSE. |
| Synergy Realization Metrics | To be developed (e.g., cross-sell index, large deal pipeline/conversion, TCV). | Evidence of increased cross-selling, larger deal wins, and growth in total contract value (TCV) post-merger. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
70Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 63rd percentile of the scored universe and 58th percentile within IT. Main check: financial discipline is weak at 38/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
118 docs text-extracted · 49 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
63rd percentile
overall median 67 · IT: 58th pctile, median 69 · Micro: 43rd pctile, median 73
Evidence depth
Financial-only
118 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
78
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
73
acceptable · leverage and solvency
Discipline
38
weak · capital discipline
Results
87
strong · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.7%.
- ▸4 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸ROCE trend is -3.4%.
- ▸Revenue CAGR is 17% but EPS CAGR is -1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Happiest Minds Technologies Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationSep 2026
Sep 2026 · PPT
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 3 Sep - Newspaper Publication of Postal Ballot Notice, pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Change in Registered Office Address 31 Aug - Board approved merger with ITC Infotech and promoter sale of 22.106% stake for ₹1,329.72 crore.
Source: Bse
Investor presentationJul 2026
Jul 2026 · PPT
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 4 Jul - Publication of Notice regarding the Annual General Meeting and information on E-voting pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2025
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.