IT - Software
Valuation | |
|---|---|
| Market Cap | 5.3 kCr |
| Price/Earnings (Trailing) | 28.23 |
| Price/Sales (Trailing) | 2.26 |
| EV/EBITDA | 14.36 |
| Price/Free Cashflow | 33.32 |
| MarketCap/EBT | 20.84 |
| Enterprise Value | 6.36 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 2.35 kCr |
| Rev. Growth (Yr) | 8.9% |
| Earnings (TTM) | 185.45 Cr |
| Earnings Growth (Yr) | -19.6% |
Profitability | |
|---|---|
| Operating Margin | 12% |
| EBT Margin | 11% |
| Return on Equity | 11.39% |
| Return on Assets | 5.5% |
| Free Cashflow Yield | 3% |
Growth & Returns | |
|---|---|
| Price Change 1W | -5.1% |
| Price Change 1M | -15.9% |
| Price Change 6M | -39.4% |
| Price Change 1Y | -49.3% |
| 3Y Cumulative Return | -25.9% |
| 5Y Cumulative Return | -9% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -762.16 Cr |
| Cash Flow from Operations (TTM) | 236.42 Cr |
| Cash Flow from Financing (TTM) | 499.46 Cr |
| Cash & Equivalents | 137.41 Cr |
| Free Cash Flow (TTM) | 228.76 Cr |
| Free Cash Flow/Share (TTM) | 15.02 |
Balance Sheet | |
|---|---|
| Total Assets | 3.37 kCr |
| Total Liabilities | 1.75 kCr |
| Shareholder Equity | 1.63 kCr |
| Current Assets | 2.01 kCr |
| Current Liabilities | 1.22 kCr |
| Net PPE | 138.06 Cr |
| Inventory | 0.00 |
| Goodwill | 767.76 Cr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.36 |
| Debt/Equity | 0.74 |
| Interest Coverage | 1.55 |
| Interest/Cashflow Ops | 3.26 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 6.25 |
| Dividend Yield | 1.8% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 3.7% |
Technicals: Bullish SharesGuru indicator.
Profitability: Recent profitability of 8% is a good sign.
Size: Market Cap wise it is among the top 20% companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Growth: Good revenue growth. With 70.6% growth over past three years, the company is going strong.
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money looks to be reducing their stake in the stock.
Momentum: Stock is suffering a negative price momentum. Stock is down -15.9% in last 30 days.
Past Returns: Underperforming stock! In past three years, the stock has provided -25.9% return compared to 12.2% by NIFTY 50.
Technicals: Bullish SharesGuru indicator.
Profitability: Recent profitability of 8% is a good sign.
Size: Market Cap wise it is among the top 20% companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Growth: Good revenue growth. With 70.6% growth over past three years, the company is going strong.
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money looks to be reducing their stake in the stock.
Momentum: Stock is suffering a negative price momentum. Stock is down -15.9% in last 30 days.
Past Returns: Underperforming stock! In past three years, the stock has provided -25.9% return compared to 12.2% by NIFTY 50.
Investor Care | |
|---|---|
| Dividend Yield | 1.8% |
| Dividend/Share (TTM) | 6.25 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 12.32 |
Financial Health | |
|---|---|
| Current Ratio | 1.65 |
| Debt/Equity | 0.74 |
Technical Indicators | |
|---|---|
| RSI (14d) | 25.7 |
| RSI (5d) | 11.46 |
| RSI (21d) | 29.18 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Buy |
| SharesGuru Signal | Buy |
| RSI Signal | Buy |
| RSI5 Signal | Buy |
| RSI21 Signal | Buy |
| SMA 5 Signal | Sell |
| SMA 10 Signal |
Summary of Happiest Minds Tech's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Happiest Minds Technologies Limited's management provided an optimistic outlook during the Q3 FY'26 earnings call. The company achieved a revenue of $65.7 million for the quarter, with a sequential growth of 1.2% and a year-over-year growth of 7.1%. For the nine months ending December 31, 2025, the revenue totaled $195.2 million, reflecting a 10.2% increase. The management reaffirmed its commitment to a 10% revenue growth trajectory for the next four years and indicated the possibility of revising these figures upwards based on current performance trends.
A major highlight from the call was the introduction of their "AI First, Agile Always" transformation, which aims to embed AI more deeply into their service offerings. This initiative is supported by a growing inventory of AI use cases, with 32 GenAI and Agentic AI projects moving towards production. The management referred to an improved demand environment for AI and noted that clients are increasingly seeking to integrate AI into core business workflows.
Looking ahead to Q4, key verticals expected to drive growth include BFSI and Healthcare. The updated pipeline shows strong activity and anticipated contributions from previously secured deals. Management emphasized that they would provide specific numeric guidance during the Q4 results announcement, anticipating an increase from the current commitments.
The management emphasized their disciplined approach to cost management and operational efficiency, which has helped maintain EBITDA margins in the 20-22% range. They are also expanding the AI team, aiming for 1,000 professionals by FY'27. Overall, the management expressed confidence in future growth as they continue to leverage AI advancements in their various offerings.
Understand Happiest Minds Tech ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| ASHOK SOOTA | 32.34% |
| ASHOK SOOTA MEDICAL RESEARCH LLP | 11.79% |
| NUGGEHALLI KRISHNAMACHARYA SRIRANGANARAYANAN | 1.34% |
| USHA SAMUEL | 0.05% |
| DEEPAK SOOTA | 0.02% |
| VEENA SOOTA | 0.01% |
| KUNKU SOOTA | 0.01% |
Detailed comparison of Happiest Minds Tech against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| LTIM | LTIMindtree | 1.31 LCr | 41.96 kCr | -26.30% | -5.60% | 27.45 | 3.11 | - | - |
| PERSISTENT | Persistent Systems | 73.72 kCr | 14.1 kCr |
Comprehensive comparison against sector averages
HAPPSTMNDS metrics compared to IT
| Category | HAPPSTMNDS | IT |
|---|---|---|
| PE | 28.23 | 20.52 |
| PS | 2.26 | 3.01 |
| Growth | 15.5 % | 6.5 % |
Happiest Minds Technologies Limited provides IT solutions and services in India, the United States, Canada, the United Kingdom, Australia, the Netherlands, Singapore, Malaysia, New Zealand, Mexico, Africa, and the Middle East. It operates through three segments: Infrastructure Management and Security Services (IMSS); Digital Business Solutions (DBS); and Product Engineering Services (PES). The IMSS segment provides integrated end-to-end infrastructure and security solutions with specialization in cloud, virtualization, and mobility across various industry verticals and geographies; advisory, transformation, managed and hosted, and secure intelligence solutions; and platforms for smart infrastructure and security solutions. The DBS segment offers enterprise applications and customized solutions comprising advisory, design and architecture, custom-app development, package implementation, and testing and on-going support services to IT initiatives. The PES segment assists software product companies in building products and services that integrates mobile, cloud, and social technologies. The company also provides Internet of Things (IoT) solutions, including digital strategy creation, device/edge/platform engineering, end-to-end system integration on IoT platform, and IoT security and enabled managed service solutions, as well as implementation of IoT roadmap and derivation of insights. In addition, it offers analytics/artificial intelligence solutions, such as implementation of advanced analytics using artificial intelligence, machine learning and statistical models, and engineering big data platforms; and digital process automation solutions comprising robotic process automation, intelligent business process management, and cognitive automation using AI and machine learning based models. The company was incorporated in 2011 and is headquartered in Bengaluru, India.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| SMA 20 Signal | Sell |
| SMA 50 Signal | Sell |
| SMA 100 Signal | Sell |
HAPPSTMNDS vs IT (2021 - 2026)
High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
1. Question: "Are the Generative AI deals and services completely new areas of spend, or are they repivoting existing budgets?"
Answer: As Sridhar, I explained that there's been a shift in client clarity regarding AI use cases. Previously, customers funded prototypes sporadically, but now they are integrating comprehensive AI roadmaps into their budgets. Yes, it's shifting from budget scraping to well-defined initiatives, marking a concrete change in spending patterns.
2. Question: "What are the various engagement models for these repeatable platforms?"
Answer: Joseph here. We're exploring several models: subscription and licensed solutions, fixed-price projects, and potentially outcome-based compensation. We aim to optimize delivery and maintain healthy gross margins. Models vary based on client clarity regarding desired outcomes.
3. Question: "What's driving growth in healthcare, and what's the update on the healthcare platform?"
Answer: Joseph speaking. Healthcare growth stems from expanding engagements across geographies and segments. Noteworthy clients include a health-tech firm and a pharma company. Our multi-omics platform is in go-to-market phase, with positive prospects while a second platform is still in ideation.
4. Question: "How are renewals impacted? Are clients asking for higher pricing reductions?"
Answer: Joseph here. Renewals have remained stable. While clients demand efficiency, we focus on preemptively showcasing the value of productivity tools. No significant ramp downs due to this demand have occurred; clients instead seek additional features to enhance output.
5. Question: "What are the projected repayment timelines for current debt?"
Answer: Venkat responding. Most of our debt is working capital, effectively managed with healthy liquidity. Our effective rates are favorable, and we continue utilizing these funds for operational efficiency, which aids in liquidity management without pressure on repayments.
6. Question: "Mr. Soota, are you really exploring a stake sale given recent share price declines?"
Answer: Ashok here. I assure you, my focus remains on driving AI initiatives, not divesting. The current pressures on the IT sector are cyclical. We're intensifying efforts to enhance growth and expect to demonstrate improvement, including through our new strategic programs.
7. Question: "What's the guidance for Q4 revenue, especially regarding which verticals will drive it?"
Answer: Joseph speaking. Key drivers will be BFSI, anticipating growth from Arttha license revenues, and healthcare, which is ramping up in Q4. We expect several larger deals to contribute not only in Q4 but also in subsequent quarters, underpinning our revenue growth targets.
8. Question: "How will Happiest Minds balance scaling AI services while ensuring profitability?"
Answer: Joseph here. Our primary focus will be on our AI First strategy, enhancing repeatable solutions, and addressing tech debt through modernization. Proper execution in these areas is expected to accelerate growth beyond the current guidance while safeguarding profitability.
9. Question: "What's the proportion of subscription revenues as a percentage of top-line?"
Answer: Venkat here. Currently, Arttha is our primary subscription service, contributing to our top-line. We foresee higher gross margins from upcoming SaaS offerings like 'Insurance in a Box', indicating potential growth in subscription revenue streams moving forward.
Distribution across major stakeholders
Distribution across major institutional holders
| -22.60% |
| -11.90% |
| 41.9 |
| 5.23 |
| - |
| - |
| MPHASIS | Mphasis | 43.04 kCr | 15.62 kCr | -18.10% | +0.50% | 23.87 | 2.75 | - | - |
| CYIENT | Cyient | 9.99 kCr | 7.44 kCr | -21.00% | -29.00% | 18.24 | 1.34 | - | - |
| - |
| -22.03 |
| 0 |
| 0 |
| -12.16 |
| 0 |
| 0 |
| Total profit before tax | -26.4% | 54 | 73 | 77 | 50 | 69 | 68 |
| Current tax | -14.3% | 19 | 22 | 22 | 19 | 22 | 22 |
| Deferred tax | -50% | -5.42 | -3.28 | -2.1 | -3.02 | -3.26 | -3.59 |
| Total tax | -27.8% | 14 | 19 | 20 | 16 | 19 | 18 |
| Total profit (loss) for period | -26.4% | 40 | 54 | 57 | 34 | 50 | 50 |
| Other comp. income net of taxes | 152% | 6.49 | -9.56 | 0.77 | 4.53 | -2.86 | -8.19 |
| Total Comprehensive Income | 7% | 47 | 44 | 58 | 39 | 47 | 41 |
| Earnings Per Share, Basic | -35.1% | 2.68 | 3.59 | 3.79 | 2.26 | 3.33 | 3.29 |
| Earnings Per Share, Diluted | -35.5% | 2.67 | 3.59 | 3.79 | 2.26 | 3.33 | 3.29 |
| Debt equity ratio | 0% | 08 | 078 | 078 | 079 | 083 | 0.01 |
| Debt service coverage ratio | 0.5% | 0.055 | 0.0501 | 0.0532 | 0.0581 | 0.0703 | 0.07 |
| Interest service coverage ratio | 0.3% | 0.0426 | 0.0399 | 0.0424 | 0.0363 | 0.0382 | 0.04 |
| Other expenses | 12.3% | 265 | 236 | 225 | 176 | 121 |
| Total Expenses | 12% | 1,412 | 1,261 | 1,063 | 820 | 598 |
| Profit Before exceptional items and Tax | -26.9% | 237 | 324 | 292 | 251 | 186 |
| Exceptional items before tax | -5783.7% | -23.44 | 1.43 | 0 | 0 | 0 |
| Total profit before tax | -34.6% | 213 | 325 | 292 | 251 | 186 |
| Current tax | -42.7% | 48 | 83 | 79 | 60 | 35 |
| Deferred tax | 19.7% | -2.99 | -3.97 | -3.59 | 4.33 | -11.18 |
| Total tax | -43.6% | 45 | 79 | 75 | 64 | 24 |
| Total profit (loss) for period | -31.4% | 169 | 246 | 216 | 186 | 162 |
| Other comp. income net of taxes | -774.7% | -5.91 | 0.21 | -5.66 | -3.09 | 10 |
| Total Comprehensive Income | -33.9% | 163 | 246 | 211 | 183 | 172 |
| Earnings Per Share, Basic | -34.4% | 11.2 | 16.552 | 15.11 | 13.21 | 11.71 |
| Earnings Per Share, Diluted | -34.4% | 11.2 | 16.551 | 15 | 12.91 | 11.41 |
| Debt equity ratio | 0.4% | 076 | 035 | 066 | 0 | - |
| Debt service coverage ratio | -1.9% | 0.0325 | 0.0503 | 0.04 | 0 | - |
| Interest service coverage ratio | -5.8% | 0.0371 | 0.0897 | 0.1486 | 0 | - |
| 1054.6% |
| 60 |
| 6.11 |
| 6.11 |
| 6.11 |
| 6.11 |
| 6.11 |
| Non-current investments | -13.4% | 800 | 924 | 902 | 197 | 197 | 197 |
| Loans, non-current | - | 0 | 0 | 0 | 0 | 17 | 25 |
| Total non-current financial assets | -13.7% | 870 | 1,008 | 926 | 222 | 367 | 315 |
| Total non-current assets | -2.2% | 1,244 | 1,272 | 1,174 | 455 | 611 | 542 |
| Total assets | 0.6% | 3,072 | 3,054 | 2,993 | 2,208 | 2,136 | 1,576 |
| Borrowings, non-current | -17.4% | 277 | 335 | 100 | 104 | 109 | 113 |
| Total non-current financial liabilities | -15.1% | 328 | 386 | 162 | 154 | 181 | 180 |
| Provisions, non-current | 35.9% | 54 | 40 | 36 | 30 | 26 | 22 |
| Total non-current liabilities | -7.5% | 394 | 426 | 199 | 184 | 208 | 202 |
| Borrowings, current | 17.1% | 899 | 768 | 999 | 338 | 352 | 364 |
| Total current financial liabilities | 3.6% | 1,063 | 1,026 | 1,244 | 503 | 508 | 501 |
| Provisions, current | 23.1% | 33 | 27 | 26 | 21 | 22 | 18 |
| Current tax liabilities | - | 0 | 0 | 0 | 27 | - | 0 |
| Total current liabilities | 4.1% | 1,120 | 1,076 | 1,292 | 550 | 551 | 548 |
| Total liabilities | 0.7% | 1,513 | 1,502 | 1,491 | 734 | 759 | 750 |
| Equity share capital | 0% | 30 | 30 | 30 | 30 | 30 | 29 |
| Total equity | 0.5% | 1,559 | 1,552 | 1,502 | 1,474 | 1,377 | 826 |
| Total equity and liabilities | 0.6% | 3,072 | 3,054 | 2,993 | 2,208 | 2,136 | 1,576 |
| 96.2% |
| 0 |
| -25 |
| 0 |
| 0 |
| - |
| Interest paid | - | 70 | 0 | 0 | 0 | - |
| Income taxes paid (refund) | -101.2% | 0 | 85 | 84 | 53 | - |
| Net Cashflows From Operating Activities | -43.6% | 107 | 189 | 172 | 159 | - |
| Cashflows used in obtaining control of subsidiaries | - | 0 | 0 | 110 | 0 | - |
| Proceeds from sales of PPE | - | 0 | 0 | 0 | 0.1 | - |
| Purchase of property, plant and equipment | -38.3% | 5.46 | 8.23 | 131 | 0.67 | - |
| Proceeds from sales of investment property | - | 0.06 | 0 | 0 | 0 | - |
| Purchase of intangible assets | 134.6% | 3.51 | 2.07 | 4.09 | 3.46 | - |
| Dividends received | 179.2% | 68 | 25 | 0 | 0 | - |
| Interest received | 19.4% | 87 | 73 | 4.4 | 0.84 | - |
| Other inflows (outflows) of cash | -45.3% | -759.68 | -522.5 | -102.92 | -85.27 | - |
| Net Cashflows From Investing Activities | -40.8% | -613.16 | -435.09 | -343.44 | -110.77 | - |
| Proceeds from issuing shares | -100.2% | 0 | 486 | 0 | 0 | - |
| Proceeds from exercise of stock options | 1.2% | 1.82 | 1.81 | 1.47 | 1.71 | - |
| Proceeds from issuing debt | -101.3% | 0 | 80 | 45 | 0 | - |
| Proceeds from borrowings | - | 715 | 0 | 171 | 0 | - |
| Repayments of borrowings | -77.7% | 9.69 | 40 | 26 | -19.59 | - |
| Payments of lease liabilities | 25.9% | 35 | 28 | 25 | 0 | - |
| Dividends paid | 0% | 86 | 86 | 57 | 68 | - |
| Interest paid | 150% | 81 | 33 | 15 | 3.28 | - |
| Other inflows (outflows) of cash | -151.8% | -55.51 | -21.44 | 9 | 0 | - |
| Net Cashflows from Financing Activities | 25.8% | 450 | 358 | 102 | -72.17 | - |
| Effect of exchange rate on cash eq. | -78.9% | -0.02 | 0.43 | 1.65 | 0.16 | - |
| Net change in cash and cash eq. | -150.9% | -55.96 | 113 | -67.54 | -23.51 | - |
Analysis of Happiest Minds Tech's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2025
| Description | Share | Value |
|---|---|---|
| PDES | 79.1% | 464.6 Cr |
| IMSS | 16.9% | 99 Cr |
| GBS | 4.1% | 23.9 Cr |
| Total |
| 587.6 Cr |