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Happiest Minds Technologies Q2 FY27 results: net profit up 15.1% to ₹62.19 crore, revenue up 12.5%
Happiest Minds Technologies Limited reported Q2 FY27 consolidated revenue of ₹645.43 crore, up 12.5% from Q2 FY26, with EBITDA of ₹121.48 crore and a margin of 18.8%. Net profit was ₹62.19 crore and basic EPS was ₹4.13, both higher than a year earlier but lower than Q1 FY27. The results were announced after market hours on 2 November 2026.
Key points
- Revenue rose 12.5% year-on-year to ₹645.43 crore and 2.7% from the previous quarter's ₹628.51 crore.
- EBITDA was ₹121.48 crore, up 23.1% from ₹98.65 crore a year ago, with the margin at 18.8%.
- Net profit was ₹62.19 crore against ₹54.02 crore in Q2 FY26 and ₹67.60 crore in Q1 FY27.
- Basic EPS was ₹4.13, up from ₹3.59 a year ago and down from ₹4.49 in the previous quarter.
- For H1 FY27, revenue was ₹1,273.94 crore, up 13.4%, while net profit was ₹129.79 crore, up 16.8%.
How did Happiest Minds Technologies perform in Q2 FY27?
Consolidated revenue for the July–September 2026 quarter was ₹645.43 crore, up 12.5% from ₹573.57 crore in Q2 FY26 and 2.7% from ₹628.51 crore in Q1 FY27. Total income stood at ₹665.99 crore, up 11.9% from ₹595.18 crore a year earlier and 2.1% from ₹652.2 crore in the previous quarter. On the standalone basis, revenue was ₹589.59 crore and net profit was ₹57.54 crore.
EBITDA was ₹121.48 crore in Q2 FY27, against ₹98.65 crore in Q2 FY26 and ₹117.60 crore in Q1 FY27. The EBITDA margin was 18.8%, up 1.6 percentage points from 17.2% a year ago and 0.1 percentage points from 18.7% in the previous quarter. Profit before tax was ₹83.53 crore, up 15.0% from ₹72.66 crore a year earlier but down 7.4% from ₹90.20 crore in Q1 FY27.
Net profit was ₹62.19 crore, up 15.1% from ₹54.02 crore in Q2 FY26 and down 8.0% from ₹67.60 crore in Q1 FY27. Basic EPS was ₹4.13, against ₹3.59 a year earlier and ₹4.49 in the previous quarter. The net profit margin was 9.6%, up 0.2 percentage points from 9.4% a year ago and down 1.2 percentage points from 10.8% in Q1 FY27.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 645.43 | 628.51 | 573.57 | +12.5% | +2.7% |
| Other income | 20.56 | 23.69 | 21.61 | −4.9% | −13.2% |
| Total expenses | 578.48 | 562 | 522.52 | +10.7% | +2.9% |
| EBITDA | 121.48 | 117.60 | 98.65 | +23.1% | +3.3% |
| EBITDA margin | 18.8% | 18.7% | 17.2% | +1.6 pp | +0.1 pp |
| Profit before tax | 83.53 | 90.20 | 72.66 | +15.0% | −7.4% |
| Tax | 21.34 | 22.60 | 18.64 | +14.5% | −5.6% |
| Net profit | 62.19 | 67.60 | 54.02 | +15.1% | −8.0% |
| EPS (₹) | 4.13 | 4.49 | 3.59 | +15.0% | −8.0% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Happiest Minds Technologies' costs and profit?
Total expenses were ₹578.48 crore, up 10.7% from ₹522.52 crore in Q2 FY26 and 2.9% from ₹562 crore in Q1 FY27. Employee cost was the largest line at ₹428.61 crore, up 10.2% from ₹389.01 crore a year earlier and 4.3% from ₹410.90 crore in the previous quarter. Other expenses were ₹95.34 crore, up 11.0% from ₹85.91 crore a year ago and down 4.7% from ₹100.01 crore in Q1 FY27.
Finance costs were ₹30.86 crore, up 21.4% from ₹25.41 crore in Q2 FY26 and 8.4% from ₹28.46 crore in the previous quarter. Depreciation was ₹23.67 crore, against ₹22.19 crore a year earlier and ₹22.63 crore in Q1 FY27. There was no exceptional item in either Q2 FY26 or Q1 FY27, while Q2 FY27 carried an exceptional charge of ₹3.98 crore, which the earnings presentation said was incurred towards the proposed merger with ITC Infotech.
Other income was ₹20.56 crore, down ₹1.05 crore, or 4.9%, from ₹21.61 crore in Q2 FY26 and down ₹3.13 crore, or 13.2%, from ₹23.69 crore in Q1 FY27. Tax was ₹21.34 crore, up ₹2.70 crore, or 14.5%, from ₹18.64 crore a year earlier and down ₹1.26 crore, or 5.6%, from ₹22.60 crore in the previous quarter.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 0 | 0 | 0 | |
| Employee cost | 428.61 | 389.01 | +39.60 | +10.2% |
| Finance costs | 30.86 | 25.41 | +5.45 | +21.4% |
| Depreciation | 23.67 | 22.19 | +1.48 | +6.7% |
| Other expenses | 95.34 | 85.91 | +9.43 | +11.0% |
| Total expenses | 578.48 | 522.52 | +55.96 | +10.7% |
| Other income | 20.56 | 21.61 | −1.05 | −4.9% |
| Tax | 21.34 | 18.64 | +2.70 | +14.5% |
| Exceptional items | −3.98 (charge) | none |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
For the first half of FY27, consolidated revenue was ₹1,273.94 crore, up 13.4% from ₹1,123.47 crore in H1 FY26. Total income was ₹1,318.19 crore, up 12.2% from ₹1,175.11 crore. Profit before tax rose 16.2% to ₹173.73 crore from ₹149.53 crore, and net profit rose 16.8% to ₹129.79 crore from ₹111.15 crore.
Basic EPS for H1 FY27 was ₹8.61, against ₹7.38 in H1 FY26. On the adjusted basis disclosed in the earnings presentation, which adds back exceptional items and amortisation of intangible assets, H1 FY27 adjusted PAT was ₹15,963 lakhs and adjusted EPS was ₹10.59, against ₹13,415 lakhs and ₹8.91 a year earlier.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 1,274 | 1,123 | +13.4% |
| Profit before tax | 173.73 | 149.53 | +16.2% |
| Net profit | 129.79 | 111.15 | +16.8% |
| EPS (₹) | 8.61 | 7.38 | +16.7% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
Total assets were ₹3,852.05 crore as on 30 September 2026, against ₹3,625.11 crore as on 31 March 2026. Total equity was ₹1,789.12 crore, compared with ₹1,689.49 crore. Borrowings stood at ₹1,480.82 crore, higher than ₹1,412.66 crore, while cash was ₹134.2 crore against ₹119.66 crore.
Trade receivables were ₹423.33 crore as on 30 September 2026, against ₹390.27 crore as on 31 March 2026, and trade payables were ₹96.88 crore against ₹96.51 crore. There were no inventories at either balance sheet date.
For H1 FY27, net cash from operating activities was ₹81.92 crore, against ₹123.23 crore in H1 FY26. Investing cash flow was ₹6.76 crore against ₹66.95 crore, and financing cash flow was negative ₹74.92 crore against negative ₹175.21 crore. Capital expenditure was ₹9.63 crore against ₹1.26 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 3,852 | 3,625 |
| Total equity | 1,789 | 1,689 |
| Borrowings | 1,481 | 1,413 |
| Cash and equivalents | 134.20 | 119.66 |
| Inventories | 0 | 0 |
| Trade receivables | 423.33 | 390.27 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 81.92 | 123.23 |
| Cash from investing | 6.76 | 66.95 |
| Cash from financing | −74.92 | −175.21 |
| Capital expenditure | 9.63 | 1.26 |
Source: Company's results filing (XBRL).
How has Happiest Minds Technologies done over the last 8 quarters?
Revenue has risen year-on-year in each of the last eight quarters, rising from ₹530.81 crore in Q3 FY25 to a period high of ₹645.43 crore in Q2 FY27. Over the same span, the EBITDA margin moved from 17.7% to a period high of 18.8%, with the lowest reading of 15.4% in Q4 FY25.
Net profit over the same eight quarters ranged from ₹34.0 crore in Q4 FY25 to ₹67.6 crore in Q1 FY27, before easing to ₹62.19 crore in Q2 FY27. The profit margin has moved in the same broad range, and the latest quarter extended the upward revenue direction while profit was lower than the previous quarter.
Which businesses drove the quarter?
The MSS segment, comprising Product and Digital Engineering Services, reported revenue of ₹494.86 crore in Q2 FY27, up 6.5% from ₹464.57 crore a year earlier. EBIT was ₹149.74 crore against ₹116.01 crore, with an EBIT margin of 30.3%.
The IMSS segment, which covers Agile and Secure Infrastructure Management and Security Services, reported revenue of ₹115.48 crore, up 24.1% from ₹93.06 crore. EBIT was ₹36.59 crore against ₹24.28 crore, with an EBIT margin of 31.7%.
The GBS segment, covering Generative AI Business Services, reported revenue of ₹35.09 crore, up 120.1% from ₹15.94 crore in Q2 FY26. EBIT was ₹11.89 crore against ₹1.36 crore, with an EBIT margin of 33.9%.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| IMSS | 115.48 | +24.1% | 36.59 | 31.7% |
| PDES | 494.86 | +6.5% | 149.74 | 30.3% |
| GBS | 35.09 | +120.1% | 11.89 | 33.9% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
The board approved the unaudited financial statements, both standalone and consolidated, for the quarter and half year ended 30 September 2026. The company also filed an earnings presentation, a press release, the auditors' review report and a disclosure of security cover for non-convertible debentures for the quarter.
The board declared an interim dividend of ₹3.05 per equity share of face value ₹2 for FY 2026-27. The record date was fixed at 6 November 2026, and the dividend was to be paid on and after 17 November 2026 to shareholders on the register as of the record date.
The earnings presentation filed on 2 November 2026 noted that the company completed 15 years in March 2026, has about 700,000 shareholders, and that a merger with ITC Infotech was proposed on 31 August 2026, with the combined entity targeting US$1 billion in revenue by FY28. The presentation also cited 310+ active clients and 95.1% repeat business.
What did Happiest Minds Technologies' management say?
Management said the combined Happiest Minds-ITC Infotech enterprise aspires to US$1 billion in annual revenue by FY28, with the merger expected by October-November 2027 if progress continues and subject to necessary approvals. CFO Venkatraman Narayanan said the company was making steady progress on the proposed combination and remained broadly on track with the timelines indicated.
Management did not provide a standalone FY27 revenue or margin range. It said FY27 constant currency revenue growth guidance of 12.5% was reiterated, and set out H2 FY27 priorities of sustained growth, protected profitability, disciplined capital allocation and improvement in days sales outstanding, which rose to 101 days from 92 amid integration-related delays.
On AI-led delivery, Sridhar Mantha said fifty-five percent of all projects were being delivered with AI-enabled delivery and seventy-two percent of developers and testers were using advanced AI tools. Management also cited ReliBuild with 15 adopters, Ellipse with 21 customers, and IP-led revenue share of 10.5%.
Management identified selective enterprise technology spending and delayed customer commitments as risks, along with US edtech weakness, with about 90% of edtech revenue exposed to the US market. It also said the ITC Infotech combination depends on regulatory, shareholder and creditor approvals, and that responsible AI requires security, data governance, model reliability and human oversight. Co-Chairman and CEO Joseph Anantharaju said the shift is from predominantly effort-based delivery towards more outcome-driven engagements.
How did Happiest Minds Technologies shares react?
The results were filed after market hours on 2 November 2026. From the price when the filing appeared, the stock was up 0.6% after five minutes, unchanged after 15 minutes, and down 0.8% after 30 minutes. On the reaction day, the stock closed up 1.4% from the previous close of ₹305.0.
By the next day's close, the stock was up 2.7% from its pre-results close. The industry median move was negative on both the reaction day and the next day, at negative 0.5%, while the Nifty Microcap 250 was up 0.3% and 2.4% over the same closes. The stock's move exceeded the industry median by 1.9 percentage points on the reaction day and 3.2 percentage points by the next day's close.
Earlier results-day moves were mixed. The stock fell 2.0% on 27 July 2026 and 2.2% on 28 May 2026, was up 0.8% on 28 October 2025 and 3.3% on 29 July 2025, and fell 1.1% on 4 February 2025 and 1.5% on 13 November 2024.
| After the filing | Stock | Computers - Software & Consulting median |
|---|---|---|
| 5 minutes | +0.6% | |
| 15 minutes | +0.0% | |
| 30 minutes | −0.8% | |
| Reaction day | +1.4% | −0.5% |
| Next day | +2.7% | −0.5% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 27 July 2026 | −2.0% |
| 28 May 2026 | −2.2% |
| 9 February 2026 | −0.5% |
| 28 October 2025 | +0.8% |
| 29 July 2025 | +3.3% |
| 12 May 2025 | −2.8% |
| 4 February 2025 | −1.1% |
| 13 November 2024 | −1.5% |
Source: MarketPing price-reaction measurement.
How did other Computers - Software & Consulting companies do?
Among 40 Computers - Software & Consulting companies compared for this quarter, the median revenue growth was 14.6%. Of the peers compared on revenue growth, 23 grew faster than Happiest Minds and 17 grew slower.
Of the 41 peers compared on profit, 24 reported higher profit. Happiest Minds reported revenue growth of 12.5% for Q2 FY27, below the peer median of 14.6%.
| Happiest Minds Technologies revenue growth (YoY) | +12.5% |
|---|---|
| Median of 40 other Computers - Software & Consulting companies | +14.6% |
| Companies with slower revenue growth than Happiest Minds Technologies | 17 of 40 |
| Companies with faster revenue growth than Happiest Minds Technologies | 23 of 40 |
| Companies whose net profit rose | 24 of 41 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Happiest Minds Technologies' revenue in Q2 FY27?
Revenue from operations was ₹645.43 crore, up 12.5% from ₹573.57 crore in Q2 FY26 (consolidated).
Did Happiest Minds Technologies make a profit in Q2 FY27?
Yes. Net profit was ₹62.19 crore, against a net profit of ₹54.02 crore in Q2 FY26.
What was Happiest Minds Technologies' EPS in Q2 FY27?
Basic earnings per share were ₹4.13, against ₹3.59 in Q2 FY26.
How did Happiest Minds Technologies shares react to the Q2 FY27 results?
On the reaction day the stock moved +1.4% from the previous close; the median Computers - Software & Consulting stock moved −0.5%.
When did Happiest Minds Technologies announce its Q2 FY27 results?
On 2 November 2026, in a filing to the BSE.
Sources
- Board Meeting Intimation for Approval Of Financial Statements For The Quarter And Half Year Ended As On September 30, 2026, And To Consider The Declaration Of Interim Dividend, If Any (BSE, 23 October 2026) · PDF
- Financial Results For The Quarter And Half Year Ended September 30, 2026 (BSE, 2 November 2026) · PDF
- Board Meeting Outcome for Board Meeting Outcome For For Approval Of Financial Results For The Quarter Ended September 30, 2026 (BSE, 2 November 2026) · PDF
- Communication To Shareholders - Financial Results For The Quarter And Half Year Ended September 30, 2026 (BSE, 4 November 2026) · PDF
- The earnings call (3 November 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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