Happiest Minds Q1 Profit Soars 68%; Shares Jump 3%

30 Jul 2025 , 09:08 AM

Shares of Happiest Minds Technologies Ltd. climbed over 3% on Tuesday, following a sharp jump in its quarterly profit that seems to have caught investor attention.

For the first quarter of FY26, the Bengaluru-based IT company posted a net profit of ₹57.1 crore. This marks a 68% increase from the ₹34 crore it reported in the previous quarter. Revenue growth inched up by just 1% on a sequential basis to ₹549.9 crore.

Operating margins, however, improved. The company reported EBITDA of ₹12.4 crore, which made up 21.4% of its total income, a noticeable uptick from the 19.3% margin it recorded in Q4 FY25.

Speaking about the results, Ashok Soota, Chairman and Chief Mentor, credited the growth to consistent client trust and the company’s expanding capabilities in areas like Generative AI and deep tech.

“We’ve started the year on a strong note, and that reflects not only the confidence our customers have in us but also the value of our digital-first approach,” Soota said in a statement. He added that the company remains focused on long-term, purposeful innovation with an eye on maintaining double-digit growth for a third straight year.

During the June quarter, Happiest Minds added 17 new clients, bringing its total active customer base to 285. New clients included a global home improvement retailer, a multinational logistics player, and a major airport in the U.S., according to a regulatory filing. As of June 30, 2025, the company had a workforce of 6,523 employees. The attrition rate stood at 18.2%, slightly elevated but in line with industry trends.

For feedback and suggestions, write to us at [e-mail]