Happiest Minds Technologies reported Q2 FY27 results on November 3, 2026, posting revenue of INR 645.43 crores, up 12.5% year-over-year, with operating margins expanding to 18.5%, a 100-basis-point gain from the prior quarter.
Operating profit reached INR 119.11 crores, up 22.4% year-over-year. Total income climbed to INR 665.99 crores, up 11.9% year-over-year. EBITDA stood at INR 142.04 crores with a 21.3% margin. Adjusted profit after tax reached INR 79.11 crores, up 20.7% from the prior-year quarter, with adjusted earnings per share at INR 5.25.
Return on capital employed hit approximately 24% on an annualized basis, while return on equity reached 14.7%. The company held INR 1,716 crores in cash and equivalents.
The margin expansion stems from the company's AI-first delivery model. Seventy-five percent of developers and testers are now GenAI-enabled, with 600 AI specialists in the talent base. Fifty-five percent of projects utilize AI-enabled delivery, and 72% of developers and testers use advanced AI tools. IP-led revenue rose to 10.5% of total revenue from 9.3% in the prior quarter.
By business segment, Product and Digital Engineering Services accounted for 76.7% of revenue, Infrastructure Management and Security Services 17.9%, and the Generative AI Business Services segment 5.4%. The GBS segment grew 120.8% year-over-year.
Geographically, the Americas represented 56.3% of revenue, though U.S. growth was weak at 0.9%. India contributed 18.0%, Europe 9.0%, APAC 8.8%, and the rest of world 7.8%. Management attributed U.S. weakness to EdTech vertical challenges and client project completions.
The company ended the quarter with 311 active customers, up from 306 in Q4 FY26. Fifty-two were million-dollar-plus customers, with 95.1% of revenue from repeat business. The top five customers contributed 28.7% of revenue.
Utilization reached 81.8%. Total headcount stood at 6,466 employees across 16 countries. Voluntary attrition declined to 14.3% on a trailing twelve-month basis from 15.4% in the prior quarter.
The stock traded at $304.55, down 0.44% from the previous close of $305.90, near its 52-week low of $295.10 and down 41% from its 52-week high of $519.90.