Happiest Minds shares rocket 12% as firm raises guidance to 12.5% on AI First launch success

Shares of Happiest Minds Technologies, a digital engineering and IT company, rallied as much as 12.5% to their day’s high of Rs 382 on the BSE on Tuesday after the company announced a revision of its FY27 growth expectation to 12.5%, up from the earlier 10%.

In the same month last year, the company introduced 10 strategic initiatives, which collectively provided the foundation for setting a revenue growth expectation of 10% in constant currency over a four-year horizon.

Last month, Happiest Minds launched AI First, its 11th strategic initiative. It said that it was observing rapid acceptance of its initiatives across the client base. Acknowledging the pace of change the company had indicated it would undertake an evaluation of client feedback, pipeline metrics, market opportunities, and the expanded scope of its AI First offerings and providing an updated growth outlook.

“This reflects the company’s confidence that its AI-First strategy and broader portfolio of strategic initiatives are generating measurable traction ahead of prior expectations. The company also believes this growth will establish a solid foundation for FY28, where it aspires to achieve 15% growth,” the company said in a press release earlier in the day.

Joseph Anantharaju, Co-Chairman & CEO, Happiest Minds, said, “We are witnessing all-round growth led by rapid acceleration in financial services, healthcare, hi-tech, and manufacturing by robust adoption of AI. The enhanced pipeline and strong business momentum we are experiencing validates our AI First strategy and reinforces our confidence in delivering superior outcomes for clients and stakeholders. Our solid FY27 forecast is a clear reflection of this trajectory.”

Happiest Minds Q3 snapshot

The IT company reported a revenue growth of 10.7% year-on-year to Rs 587 crore, driven by strong deal closures. The company reported an EBITDA margin of 20.4%, maintaining steady profitability.

For the December 2025 quarter, profit after tax (PAT) declined 19.5% to Rs 40.30 crore, compared with Rs 50.10 crore in the same quarter last year.Venkatraman Narayanan, Managing Director, said, “We continue to deliver healthy revenue growth and operating and EBITDA margins in line with our commitments. I would like to draw your attention to the adjusted PAT, which, excluding non-cash acquisition costs and the one-time wage code charge, stood at 11.6% in the quarter, compared to 11.0% in the previous quarter. Supported by robust cash flows and a steadfast focus on long-term value creation through our AI First approach, we remain well positioned to drive sustainable growth, profitability, and returns for our stakeholders. We plan to double down on our AI/GenAI investments and build a dedicated 1,000+ team by end of FY27.”

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