Happiest Minds Q4 FY26 net profit up 79.9% to ₹61.17 Cr on employee utilisation rising to 81.4%
Revenue +10.9% to ₹604 Cr; operating margin +30.7% to ₹106.21 Cr (17.5% vs 14.9% last year)
BFSI leads at 26.1% revenue share, healthcare 17.1%; US share down to 59.3%, India up to 17.6%; dividend ₹3.65/share
IT firm Happiest Minds Technologies on Friday reported a 79.9% growth in consolidated net profit to ₹61.17 crore in the January-March quarter of FY26, primarily on the back of improved employee utilisation and a resulting expansion in operating margins.
The company had posted a net profit of ₹34 crore in the corresponding quarter of FY25, according to regulatory filings.
Revenue from operations grew 10.9% to ₹604.08 crore during the quarter under review, as compared to ₹544.57 crore in the year-ago period.
1 May 2026
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Seen sequentially, profit and revenue rose 51.7% and 2.8%, respectively.
Employee utilisation improved to 81.4% in the quarter under review, up from 77.4% in the corresponding period last year. As of March 31, 2026, the company has 6,497 employees.
The company's operating margin grew by 30.7% year-on-year to ₹106.21 crore in Q4 FY26, compared to ₹81.25 crore in Q4 FY25. As a percentage of revenue, the operating margin expanded to 17.5% from 14.9% in the year-ago period.
“On the back of our improved utilisation…we have delivered industry-leading operating margins of 17.4% well within our guided range. With our investments of the previous years paying off and based on expected growth of 12.5% in constant currency for the next year, we are planning to improve our margins by at least 100 basis points.
“On the back of a robust balance sheet and healthy cash flows, we remain well-positioned to continue our investments in our AI-First strategy to deliver sustainable long-term value. We are pleased to announce a final dividend of ₹3.65 per share, subject to shareholder approval,” Happiest Minds Managing Director Venkatraman Narayanan said.
For the full fiscal year ended March 31, 2026, Happiest Minds’ net profit stood at ₹212.62 crore, about 15% higher than ₹184.66 crore in the preceding fiscal.
FY26 revenue came in 12.3% higher at ₹2,315.11 crore.
Among industry verticals, Banking, Financial Services and Insurance (BFSI) remained the largest contributor to the company's revenue, expanding its share significantly to 26.1% in FY26 from 22.5% in FY25.
Healthcare emerged as the second-largest vertical, accounting for 17.1% of the total revenue, up from 16.3% in the previous fiscal.
Conversely, the revenue share from the Edutech sector witnessed a year-on-year decline, dropping to 15.6% in FY26 from 18.7% in FY25.
Geographically, the United States continued to be the dominant market for the company, although its overall contribution to total revenue moderated to 59.3% in FY26 compared to 64.6% in FY25.
Meanwhile, India saw its revenue share increase to 17.6% in FY26 from 15.6% in the preceding financial year.
The Asia-Pacific (APAC) region also saw a year-on-year increase, contributing 7.2% to the FY26 revenue, up from 5.3% in FY25.
“The education segment is being transformed by GenAI, which will lead to opportunities and the revival of the EdTech vertical. In addition to the success of the Arttha banking platform, our Eduweave solution already has live customers and a good set of prospects, and we expect many of our other platforms to drive repeatable sales and solutions,” Joseph Anantharaju, Co-Chairman & CEO, Happiest Minds, said.
Shares of Happiest Minds were trading 0.11% higher at ₹378.85 apiece in early-day trade on the BSE on Friday.
