EBITDA margin at a robust 20.4%; ‘AI First. Agile Always.’ strategy begins translating into scalable growth
Bengaluru: Happiest Minds Technologies Limited (NSE: HAPPSTMNDS) reported a sharp acceleration in growth for the third quarter ended December 31, 2025, with consolidated revenues rising 10.7 per cent year-on-year to ₹587 crore, driven by strong deal closures and increasing traction of its AI-led offerings. The company delivered an EBITDA margin of 20.4 per cent, underlining disciplined execution and operating efficiency even as investments in next-generation capabilities continue.
The quarter marked a strategic inflection point for the company as it rolled out “AI First. Agile Always.”, positioning AI as the core driver of future growth and value creation. The strategy, launched as Happiest Minds’ 11th strategic transformation, is anchored by 11 focused programs aimed at embedding AI deeply across solutions, delivery, and operations.
Ashok Soota, Chairman & Chief Mentor, said addressing Press conference the momentum around AI adoption is already visible across the organisation and in customer engagements. “What some see as turbulence in global software markets, we see as an opportunity. AI is not a threat to Happiest Minds; it is a powerful growth catalyst. Our AI First transformation is progressing well, and we expect this to accelerate our growth trajectory,” he said.
A key differentiator in this journey is the company’s AI Services Delivery Platform, designed to move enterprise AI initiatives rapidly from pilot to production. According to Sridhar Mantha, CEO – Generative AI Business Services, the platform integrates proven frameworks, reusable components and intelligent agents to significantly reduce time-to-market while improving productivity. “After a successful healthcare deployment, the platform is now being scaled across verticals, delivering tangible outcomes and measurable business value,” he noted.
Happiest Minds’ AI First approach spans four critical areas—advanced AI solutions, AI-native software development, IT service management and cybersecurity. The company is already deploying domain-specific copilots, intelligent search tools and AI assistants embedded directly into workflows. At the platform and operations level, it is modernising legacy systems, enabling autonomous workflows, strengthening governance and delivering predictive insights to reduce costs and improve performance.
During the quarter, 32 Generative AI and Agentic AI use cases moved beyond prototypes, with several scaling into full-fledged engagements that can be replicated across multiple accounts and industries. Recent wins include a GenAI-powered sales assistant for a premium interiors retailer in Australia and a large-scale digital and AI transformation for a leading academic and research institution in Asia.
Joseph Anantharaju, Co-Chairman & CEO, said customers are increasingly shifting from experimenting with AI at the edges to making it central to their business strategy. “Our Agentic AI approach, combining coding agents with human developers, unlocks a huge opportunity to modernise complex applications while delivering significant productivity gains in a cost-efficient and low-risk manner,” he said.
From a financial standpoint, Managing Director Venkatraman Narayanan highlighted consistent margin performance and improving profitability. Adjusted PAT, excluding non-cash acquisition costs and a one-time wage code charge, improved to 11.6 per cent in Q3 from 11.0 per cent in the previous quarter. Backed by strong cash flows, the company plans to significantly step up investments in AI and GenAI, with a target of building a dedicated 1,000+ AI talent team by the end of FY27.
With accelerating revenue growth, healthy margins and a clear AI-led roadmap, Happiest Minds appears well positioned to deliver sustainable growth and long-term value in an increasingly AI-driven digital economy.
