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IT services company Happiest Minds Technologies is facing a slowdown in business growth as delayed client contracts, weakness in its education
technology (EdTech) segment and slower revenue generation from its digital banking platform affect its performance.
The company's Co-chairman and Chief Executive Officer, Joseph Anantharaju, acknowledged that growth is falling short of its earlier target of 12.5 per cent for the current financial year. He attributed the slowdown to large client deals being pushed into subsequent quarters, challenges in the EdTech business and slower-than-expected revenue from Arttha, the company's digital banking platform.
Despite these challenges, the company reported a 12.5 per cent year-on-year increase in consolidated revenue to ₹645.43 crore for the quarter ended September 30, 2026. Revenue also grew 2.7 per cent sequentially in rupee terms. In constant currency terms, revenue increased 6.8 per cent year-on-year and 2.4 per cent compared with the previous quarter.
The company's operating margin improved to 18.5 per cent from 17.5 per cent in the preceding quarter. However, consolidated net profit declined 8 per cent sequentially to ₹62.19 crore, although it registered a 15.1 per cent increase compared with the same quarter last year.
Anantharaju told Moneycontrol that the company's generative AI business recorded sequential growth of around 7–8 per cent during the quarter. Several proof-of-concept projects and pilot engagements are progressing towards larger implementation contracts. The company expects its generative AI business to contribute double-digit revenue during the current financial year.
Happiest Minds is also working to expand revenue from Arttha, its digital banking platform, through new business opportunities, including a major prospective deal. Its university-focused platform is also gaining traction.
Meanwhile, the company is progressing with its proposed merger with ITC Infotech, announced in August 2026. The combined entity aims to achieve annual revenue of USD 1 billion by FY28 and employ more than 19,000 people.
The company's Co-chairman and Chief Executive Officer, Joseph Anantharaju, acknowledged that growth is falling short of its earlier target of 12.5 per cent for the current financial year. He attributed the slowdown to large client deals being pushed into subsequent quarters, challenges in the EdTech business and slower-than-expected revenue from Arttha, the company's digital banking platform.
Despite these challenges, the company reported a 12.5 per cent year-on-year increase in consolidated revenue to ₹645.43 crore for the quarter ended September 30, 2026. Revenue also grew 2.7 per cent sequentially in rupee terms. In constant currency terms, revenue increased 6.8 per cent year-on-year and 2.4 per cent compared with the previous quarter.
The company's operating margin improved to 18.5 per cent from 17.5 per cent in the preceding quarter. However, consolidated net profit declined 8 per cent sequentially to ₹62.19 crore, although it registered a 15.1 per cent increase compared with the same quarter last year.
Anantharaju told Moneycontrol that the company's generative AI business recorded sequential growth of around 7–8 per cent during the quarter. Several proof-of-concept projects and pilot engagements are progressing towards larger implementation contracts. The company expects its generative AI business to contribute double-digit revenue during the current financial year.
Happiest Minds is also working to expand revenue from Arttha, its digital banking platform, through new business opportunities, including a major prospective deal. Its university-focused platform is also gaining traction.
Meanwhile, the company is progressing with its proposed merger with ITC Infotech, announced in August 2026. The combined entity aims to achieve annual revenue of USD 1 billion by FY28 and employ more than 19,000 people.
