Happiest Minds Technologies Limited (HAPPSTMNDS)
Micro CapIT stocks · Micro cap · NSE
Happiest Minds is an AI-First customer-centric digital engineering company, completing 15 years in March 2025. It serves 306+ active clients, including 91 Fortune2000/Forbes200 corporations across 16 countries, with 92.6% repeat business. The company employs 6,497 people and focuses on digital transformation.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 55/100Rev +14% YoY · PAT +19% YoY · margin expansion
| 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.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Happiest Minds reported robust Q4 FY26 performance with revenue up 10.9% YoY and 2.8% QoQ. PAT surged 79.9% YoY and 51.8% QoQ, driven by a significant PBT increase. Full-year FY26 revenue grew 12.3% YoY, while Adjusted PAT increased 9.4% YoY.
While Q4 PAT growth is impressive, largely due to a PBT surge, the underlying revenue growth of 10.9% YoY and 2.8% QoQ suggests moderate operational momentum. The full-year revenue growth of 12.3% is decent, but EBITDA margin compression YoY (21.4% to 20.3%) warrants scrutiny. The AI-first strategy is key, but its revenue contribution (GBS) is still small.
Revenue by Business Unit (Q4 FY26)
Latest issuer-disclosed distribution across 3 reported categories.
AI-First Strategy
Company is 'AI First by Design', with GenAI and Agentic AI core to solutions. 75%+ GenAI-enabled developers & testers, 600 AI specialists.
Digital Engineering Services
Product & Digital Engineering Services (PDES) is the largest business unit, contributing 78.7% of Q4 FY26 revenue.
Enterprise AI Platform
Developing an Enterprise AI Platform with AI Agents & Copilots, reusable accelerators, and an enterprise knowledge layer to drive faster AI adoption and efficiency.
Headcount Growth
Total headcount was 6,497 in Q4 FY26, a decrease from 6,632 in Q4 FY25 and 6,548 in Q3 FY26.
Increasing AI Adoption
GenAI and Agentic AI are core to how solutions are designed, built, and delivered, with multiple use cases moving to live solutions for clients.
Digital Transformation Demand
Client testimonials highlight successful digital transformation projects, including streamlining order management and cloud migrations.
Headcount Reduction
Total headcount decreased to 6,497 in Q4 FY26 from 6,632 in Q4 FY25 and 6,548 in Q3 FY26, potentially impacting future growth capacity.
EBITDA Margin Compression
Full-year FY26 EBITDA margin declined to 20.3% from 21.4% in FY25, indicating pressure on profitability.
Decline in Million $ Customers
Number of customers contributing over $1M in revenue decreased to 52 in Q4 FY26 from 57 in Q4 FY25 and 58 in Q3 FY26.
Client Concentration
Top 5 clients contribute 27.0% of revenue, Top 10 contribute 40.9%, and Top 20 contribute 55.8%.
Attrition Rates
Voluntary attrition (TTM) remains elevated at 17.0% in Q4 FY26, posing a risk to project delivery and talent retention.
New Wage Code Cost
Exceptional item of (344) Lakhs in Q4 FY26 and 2,203 Lakhs in FY26 related to New wage code cost.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
YoY comparison is crucial for understanding long-term growth trends and mitigating seasonal effects in the IT services sector. QoQ comparison is important to assess sequential momentum, project execution, and immediate demand shifts, especially in a dynamic environment like digital engineering and AI services.
Revenue (INR Lakhs)
Q4 FY26: 60,408 (10.9% YoY, 2.8% QoQ). FY26: 2,31,511 (12.3% YoY).
EBITDA (INR Lakhs)
Q4 FY26: 12,120 (10.3% YoY, -1.3% QoQ). FY26: 48,835 (5.6% YoY).
EBITDA Margin (%)
Q4 FY26: 19.5% (vs 19.3% Q4 FY25, 20.4% Q3 FY26). FY26: 20.3% (vs 21.4% FY25).
PAT (INR Lakhs)
Q4 FY26: 6,117 (79.9% YoY, 51.8% QoQ). FY26: 21,263 (15.1% YoY).
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth | 10.9% YoY, 2.8% QoQ in Q4 FY26. | Acceleration in sequential growth and sustained double-digit YoY growth, especially from new AI-led services. |
| EBITDA Margin | 19.5% in Q4 FY26, 20.3% in FY26. | Stabilization and improvement in margins, reversing the FY26 YoY decline, indicating better cost management and pricing power. |
| Million $ Customers | 52 in Q4 FY26 (down from 57 in Q4 FY25). | Reversal of the declining trend in high-value customer additions, indicating stronger client mining and deal wins. |
| Headcount & Attrition | 6,497 headcount (down YoY/QoQ), 17.0% TTM attrition. | Stabilization or growth in headcount to support future demand, and a reduction in attrition rates. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
49NeutralSMA20 +5.1% / mo · MACD − · near 52W low
Technical chart
HAPPSTMNDSdaily · 1Y · AUTO+3.9%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 34.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 rising (~4.9% over last month) — short-term momentum positive.
- RSI(14) at 34 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 39% off 52W high · 7% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 35 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 35 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
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 -47.3%.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
- Quality is weaker at 6/20; verify the latest quarterly trend.
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.
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.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: 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.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROCE trend is -3.4%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 58th pctile, median 69 · Micro: 43rd pctile, median 73
118 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead 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.
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.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 23.00
- P/B
- 3.19
- EV/EBITDA
- 13.37
- Market Cap
- 5391.00Cr
Profitability
- ROE
- 13.80%
- ROCE
- 13.30%
- ROA
- 6.22%
- Dividend Y
- 1.81%
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
- 3.58
- Book Value
- 111.00
Cash Flow
- FCF Yield
- 2.67%
- FCF Positive Y
- 4/5
- OCF
- 261.00 Cr
- EPS TTM
- 14.66
Shareholding
- Promoter Hold
- 44.21%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 18%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
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.