Q2 2026 Happiest Minds Technologies Ltd Earnings Call Transcript
Key Points
- Happiest Minds Technologies Ltd (BOM:543227) reported a strong H1 FY26 with revenue growth of 11.8% in constant currency and an EBITDA margin of 20.8%, reflecting successful strategic transformations.
- The generative AI business unit has been a standout performer, delivering 77.8% year-on-year growth in constant currency for Q2 and 79% for H1, becoming a key growth engine.
- The company added 30 new clients in H1, generating approximately USD9 million in revenues, with a potential of USD50 million to USD60 million over the next three years.
- Operational metrics improved with company-wide utilization reaching 80.7%, the highest in over three years, contributing to operating leverage and delivery excellence.
- Happiest Minds Technologies Ltd (BOM:543227) raised its growth commitment from three to four consecutive years of double-digit revenue growth, reflecting confidence in its business model and pipeline.
- The Infrastructure Management and Security Services (IMSS) segment experienced a decline due to a large customer going through a new proposal and a deal being pushed to Q3.
- The BFSI vertical saw a slight drop in revenue due to delays in closing deals and temporary ramp downs from large customers.
- The company faced cross-currency headwinds impacting USD growth, with a 1.2% growth in USD terms versus 2.3% in constant currency.
- SG&A costs have been growing higher year-on-year compared to revenue, driven by investments in new sales engines and verticalization, which may impact margins.
- The EduTech vertical has been experiencing revenue declines, with expectations for stabilization by Q3, but recovery is still uncertain.
Ladies and gentlemen, good day, and welcome to the Happiest Minds Q2 FY26 earnings conference call hosted by Anand Rathi Institutional Equities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sushovon Nayak from Anand Rathi Institutional Equities. Thank you, and over to you, sir.
Good morning, ladies and gentlemen. Thank you for joining us today for the Q2 FY26 earnings call of Happiest Minds Technologies Limited. On behalf of Anand Rathi Institutional Equities, I would like to thank the management of Happiest Minds for giving us the opportunity to host this earnings call.
Today, we have with us Mr. Ashok Soota, Chairman and Chief Mentor; Mr. Joseph Anantharaju, Co-Chairman and CEO; Mr. Venkatraman Narayanan, Managing Director; Mr. Rajiv Shah, Executive Director; Mr.
Ram Mohan, CEO, Infrastructure Management and Security Services; Mr. Sridhar Mantha, CEO, Generative AI Business Services; Mr. Anand
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