Shares of Happiest Minds Technologies Ltd. rallied as much as 12.5% to ₹382 on the BSE on Tuesday, following the company's announcement of revised growth projections. According to The Economic Times, the stock was trading at the day's high, reflecting strong investor confidence in the company's enhanced growth outlook and strategic positioning in the AI sector. The positive market reaction demonstrates the market's recognition of the company's accelerated momentum from its AI-First strategy and strong demand across sectors.
The Bengaluru-based digital engineering company revised its FY27 revenue growth expectation to 12.5%, citing rapid acceptance of its AI-First strategy and strong demand across sectors. As reported by The Economic Times, this revised outlook is higher than the company's earlier growth estimate of 10% in constant currency over a four-year horizon. The upgrade follows the company's AI First initiative launched last month, which represents the 11th strategic initiative and reorients its operating model, service delivery architecture and client engagement philosophy around artificial intelligence as a value-creation mechanism. The company introduced 10 strategic initiatives in March 2025, which collectively provided the foundation for setting the initial revenue growth expectation.
Looking ahead, Happiest Minds now aims to achieve 15% growth in FY28, building on the expected momentum from its AI-focused strategy and broader strategic initiatives. According to The Economic Times, Joseph Anantharaju, Co-Chairman & CEO, stated that the company is witnessing all-round growth led by rapid acceleration in financial services, healthcare, hi-tech, and manufacturing sectors through robust adoption of AI. Ashok Soota, Chairman and Chief Mentor, emphasized that the enhanced pipeline and strong business momentum validate their AI-first strategy and reinforce confidence in delivering superior outcomes for clients and stakeholders. The company is seeing strong adoption of AI across sectors including financial services, healthcare, hi-tech and manufacturing, which is supporting an enhanced pipeline and stronger business momentum.
As of February 2026, Happiest Minds reported annualised revenue of over $260 million, employs more than 6,500 people across 43 global offices, and serves over 290 customers worldwide, including more than 85 billion enterprises. As reported by CNBC TV18, the company positions itself as an AI-First digital engineering company, providing services across areas such as product engineering, cybersecurity, analytics and automation platforms. Despite the recent gains, the stock has halved from its 52-week high level of ₹708, while from its record high levels of over ₹1,500, the stock is down over 70%.
For the December 2025 quarter, Happiest Minds reported revenue growth of 10.7% year-on-year to ₹587 crore, driven by strong deal closures, with an EBITDA margin of 20.4% maintaining steady profitability. However, profit after tax (PAT) declined 19.5% to ₹40.30 crore compared with ₹50.10 crore in the same quarter last year. According to The Economic Times, Venkatraman Narayanan, Managing Director, highlighted that the company delivered healthy revenue growth and operating margins in line with commitments, with adjusted PAT at 11.6% in the quarter compared to 11.0% in the previous quarter. The company plans to double down on its AI/GenAI investments and build a dedicated 1,000+ team by end of FY27 to support its growth trajectory.
