HAPPSTMNDS - Happiest Minds Technologies Limited Share Price
IT - Software
Valuation | |
|---|---|
| Market Cap | 7.72 kCr |
| Price/Earnings (Trailing) | 39.07 |
| Price/Sales (Trailing) | 3.36 |
| EV/EBITDA | 19.13 |
| Price/Free Cashflow | 33.32 |
| MarketCap/EBT | 28.7 |
| Enterprise Value | 8.78 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 2.3 kCr |
| Rev. Growth (Yr) | 8.5% |
| Earnings (TTM) | 195.25 Cr |
| Earnings Growth (Yr) | 9.1% |
Profitability | |
|---|---|
| Operating Margin | 12% |
| EBT Margin | 12% |
| Return on Equity | 11.99% |
| Return on Assets | 5.79% |
| Free Cashflow Yield | 3% |
Price to Sales Ratio
Revenue (Last 12 mths)
Net Income (Last 12 mths)
Growth & Returns | |
|---|---|
| Price Change 1W | -1.8% |
| Price Change 1M | -3.2% |
| Price Change 6M | -13.4% |
| Price Change 1Y | -33.1% |
| 3Y Cumulative Return | -19.6% |
| 5Y Cumulative Return | 8.9% |
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 | 1.64 |
| Interest/Cashflow Ops | 3.26 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 6.25 |
| Dividend Yield | 1.23% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 3.7% |
Summary of Latest Earnings Report from Happiest Minds Tech
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.
Last updated:
Management's outlook for Happiest Minds Technologies Limited indicates a positive trajectory following strong performance in H1 FY '26. The company reported revenues of USD 129.5 million, reflecting an 11.8% growth in constant currency, and an EBITDA margin of 20.8%. The consistent performance amid a muted demand environment showcases the resilience of their AI-led offshore model.
Key forward-looking points include:
Growth Commitment: The previous target of three consecutive years of double-digit growth has been raised to four years, displaying confidence in the current pipeline and anticipated acceleration from strategic initiatives.
Generative AI (GAI) Business Unit: GAI has emerged as a primary growth driver, achieving 77.8% year-on-year growth in Q2 and 79% for H1, supported by 22 replicable projects expected to unlock nearly USD 50 million in sales potential over the coming years.
Net New Sales Unit: The newly established independent sales unit added 30 new clients in H1, contributing approximately USD 9 million in revenues, with an anticipated revenue potential ranging from USD 50 million to USD 60 million over the next three years.
Client Expansion: More than half of new clients have already expanded into multiple initiatives within months of onboarding, indicating strong early traction and future revenue potential.
Operational Metrics: Utilization rates improved to 80.7%, the highest in over three years, with margin expectations of 20% to 22% maintained for ongoing profitability.
Overall, management remains focused on leveraging strong pipelines in AI, cybersecurity, and data-driven transformations, aiming for sustainable and profitable growth moving forward.
Last updated:
Major Questions and Answers from the Q&A Section
1. Question: What has led to the decline in the Infrastructure and Security Services vertical?
Answer: The decline was primarily due to a large customer undergoing a proposal change, which halted some ongoing deals. Additionally, one deal expected in Q2 has been pushed to Q3. However, we anticipate improvement due to a strong pipeline for Q3.
2. Question: Can you provide insights on our win rate and pipeline improvements regarding Net New large deals?
Answer: Our pipeline increased by 20-25% this quarter, largely driven by our Net New sales initiative. We've added 30 new clients, many from Fortune 500, which we believe will yield $50-$60 million over the next 3-4 years.
3. Question: Should we expect better top-line performance in Q3 and Q4?
Answer: Yes, we expect Q3 to see growth due to slippages from Q2 now realized, particularly in our IMSS and Arttha banking deals. The trend looks positive given our strong pipeline.
4. Question: Could you clarify the impact of our currency and wage hike on margins?
Answer: Our operating margins are slightly down due to wage increases, approximately Rs.11-12 crores. Yet, we enjoyed a net forex benefit around Rs.10 crores that helped offset some costs.
5. Question: What has led to the strong performance in the Retail and Manufacturing segments against industry trends?
Answer: In Retail, Q2 saw growth from significant deals in Europe, particularly in natural foods and beverages. In Manufacturing, a large Indian automotive client ramped up revenues after declines in Q1.
6. Question: How do you see the impact of Generative AI on pricing and productivity?
Answer: We're seeing Gen AI projects achieve a 20-25% premium over standard rates, enhancing productivity. Benefits are shared with clients while we also absorb costs for tools and training.
7. Question: Can you summarize the integration and synergy benefits from the Aureus and PureSoftware acquisitions?
Answer: Both acquisitions have expanded our BFSI capabilities, and we've successfully cross-sold their strengths in AI and security to existing clients, while also developing their platforms for broader market entry.
8. Question: What are your hiring plans given your growth outlook?
Answer: We plan to continue adding headcount through Q3 and Q4 to align with our projected growth, having already increased by 31 in Q2.
9. Question: How does your organization approach TCV reporting?
Answer: We do not report TCV due to its inconsistency. We focus instead on repeat and new business metrics, maintaining clarity on our revenue streams without muddying the figures.
These responses cover the significant aspects of the earnings call's Q&A section, focusing on company performance, strategic initiatives, and future outlooks.
Revenue Breakdown
Analysis of Happiest Minds Tech's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Jun 30, 2025
| Description | Share | Value |
|---|---|---|
| PDES | 80.4% | 441.9 Cr |
| IMSS | 17.2% | 94.5 Cr |
| GBS | 2.5% | 13.5 Cr |
| Total | 549.9 Cr |
Share Holdings
Understand Happiest Minds Tech ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Holding Pattern
Share Holding Details
| Shareholder Name | Holding % |
|---|---|
| ASHOK SOOTA | 32.34% |
| ASHOK SOOTA MEDICAL RESEARCH LLP | 11.79% |
| SBI SMALL CAP FUND | 7.33% |
| NUGGEHALLI KRISHNAMACHARYA SRIRANGANARAYANAN | 1.36% |
| USHA SAMUEL | 0.05% |
| DEEPAK SOOTA | 0.02% |
| VEENA SOOTA | 0.01% |
| KUNKU SOOTA | 0.01% |
Overall Distribution
Distribution across major stakeholders
Ownership Distribution
Distribution across major institutional holders
Is Happiest Minds Tech Better than it's peers?
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 | 1.66 LCr | 40.82 kCr | +9.70% | -2.10% | 34.17 | 4.08 | - | - |
| PERSISTENT | Persistent Systems | 91.59 kCr | 13.39 kCr | +15.50% | +9.30% | 54.4 | 6.84 | - | - |
| MPHASIS | Mphasis | 52.63 kCr | 15.18 kCr | +1.10% | -3.60% | 29.44 | 3.47 | - | - |
| CYIENT | Cyient | 12.85 kCr | 7.47 kCr | -1.20% | -37.20% | 22.21 | 1.72 | - | - |
Sector Comparison: HAPPSTMNDS vs IT - Software
Comprehensive comparison against sector averages
Comparative Metrics
HAPPSTMNDS metrics compared to IT
| Category | HAPPSTMNDS | IT |
|---|---|---|
| PE | 39.07 | 23.25 |
| PS | 3.36 | 3.59 |
| Growth | 20.1 % | 5.4 % |
Performance Comparison
HAPPSTMNDS vs IT (2021 - 2025)
- 1. HAPPSTMNDS is NOT among the Top 10 largest companies in Computers - Software & Consulting.
- 2. The company holds a market share of 0.3% in Computers - Software & Consulting.
- 3. In last one year, the company has had an above average growth that other Computers - Software & Consulting companies.
Income Statement for Happiest Minds Tech
Balance Sheet for Happiest Minds Tech
Cash Flow for Happiest Minds Tech
What does Happiest Minds Technologies Limited do?
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.