Happiest Minds Forecasts Double-Digit Growth in FY26
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Happiest Minds Technologies expects healthy, double-digit, organic growth in FY26 and FY27, driven by strategic changes and acquisitions. The company is confident despite market predictions of a US slowdown.
Photograph: Courtesy Happiest Minds on Twitter.
Bengaluru, Mar 26 (PTI) Mid-cap Indian IT firm Happiest Minds Technologies' senior leadership on Wednesday exuded confidence in attaining a "healthy, double-digit, organic growth" in 2025-26 and 2026-27, as it outlined 10 strategic changes and initiatives it is undertaking to fuel growth.
These changes, launched by Happiest Minds since FY24 and going ahead through FY26, are the first steps in building a strong organisation for the future, company CEO Anantharaju asserted.
"We expect to deliver healthy double-digit organic growth, not just in FY26 but also in FY27, due to the momentum we are building up through our 10 strategic transformational changes.
"The year FY25 is witnessing flat growth for some majors and negative growth for a few others. We have delivered a healthy double-digit growth, albeit most of it is inorganic. The market is predicting a US slowdown or recession. This has clouded the prospects for the Indian IT industry.
"We want to state emphatically that at Happiest Minds, we see no recession-driven slowdown...We see a good view ahead for the next two years," Chairman Ashok Soota said.
The Bengaluru-headquartered firm last week announced a slew of apex-level changes in its organisation structure with immediate effect.
As part of the rejig, Executive Vice Chairman Anantharaju has been elevated to Co-Chairman and CEO, while Soota has taken up an additional position as the Chief Mentor of the company.
"The Executive Board (EB) will continue in its current form and provide continuity while we use this year to transition to a new look EB consisting of next-generation leaders to help us meet our goal of long-term profitable growth for the next decade. We would also need to integrate the organizations from the two companies that we acquired earlier this year," the CEO said.
An integrated organization structure is expected to be announced in the next 6-8 weeks, he added.
In April 2024, Happiest Minds announced the acquisition of Noida-based PureSoftware Technologies for a total consideration of USD 94.5 million (about Rs 779 crore). With this acquisition, Happiest Minds had said it would expand its geographical footprint, gaining a presence in Mexico and offices in Singapore, Malaysia, and Africa.
In May 2024, Happiest Minds entered into an agreement to acquire Aureus Tech Systems, a digital product engineering firm based in the United States, for USD 8.5 million (around Rs 71 crore).
"After a few years of delay, we finally completed two acquisitions--PureSoftware and Aureus whose results were integrated in Q1 of FY25. The wait had been worthwhile because both organizations were aligned with our culture, brought in excellent talent and the acquisitions were cash-accretive. The results of these acquisitions led to our growth in FY25 being well above industry average," Soota noted.
The company posted a 7.53 per cent rise profit to Rs 248.39 crore in FY24 compared to Rs 230.99 crore in the previous fiscal. Revenue for financial year 2023-24 was at Rs 1,624.66 crore, a 13.66 per cent climb over Rs 1,429.29 crore in FY23.
In October last year, the company established a new business unit, Generative AI Business Services (GBS), headed by Sridhar Mantha, the company's erstwhile CTO.
Happiest Minds has also appointed a Chief Growth Officer, Maninder Singh, who is responsible for net new sales. Singh's team is already making a visible impact by bringing in new logos, the chairman said.
"These transformational changes will show great growth in FY26 and even more so in FY27, assuring us of a healthy organic growth in FY26 and then FY27," he said.
Besides, plans are underway for the company to develop a Private Equity Company eco-system and their portfolio companies, addressing the requirement of GCC companies, and creating a large account focus strategy.
It is also enhancing its product capabilities and moving to a SaaS (Software as a solution) platform. Additionally, it announced its HaaS (Hardware as a service) solution, which is expected to launch by Q4 FY26.
"The tenth and final transformational change is our HaaS solution. The product will be delivered in two phases: first as a revolutionary product which is expected to be available for launch by Q4. The HaaS solution will require another year.
"Lest there is a fear that development of the product will require large capital expenditure and strain our resources, let me assure you that even in the first full year, the business will run on a cash-positive basis. It's also important to mention that our product is being developed through the unique bio-informatics capability of Happiest Minds," Soota said.
Happiest Minds Technologies offers digital transformation, product engineering, and infrastructure management services.
Shares of the company settled 1.96 per cent lower at Rs 624.10 apiece on the BSE on Wednesday.
These changes, launched by Happiest Minds since FY24 and going ahead through FY26, are the first steps in building a strong organisation for the future, company CEO Anantharaju asserted.
"We expect to deliver healthy double-digit organic growth, not just in FY26 but also in FY27, due to the momentum we are building up through our 10 strategic transformational changes.
"The year FY25 is witnessing flat growth for some majors and negative growth for a few others. We have delivered a healthy double-digit growth, albeit most of it is inorganic. The market is predicting a US slowdown or recession. This has clouded the prospects for the Indian IT industry.
"We want to state emphatically that at Happiest Minds, we see no recession-driven slowdown...We see a good view ahead for the next two years," Chairman Ashok Soota said.
The Bengaluru-headquartered firm last week announced a slew of apex-level changes in its organisation structure with immediate effect.
As part of the rejig, Executive Vice Chairman Anantharaju has been elevated to Co-Chairman and CEO, while Soota has taken up an additional position as the Chief Mentor of the company.
"The Executive Board (EB) will continue in its current form and provide continuity while we use this year to transition to a new look EB consisting of next-generation leaders to help us meet our goal of long-term profitable growth for the next decade. We would also need to integrate the organizations from the two companies that we acquired earlier this year," the CEO said.
An integrated organization structure is expected to be announced in the next 6-8 weeks, he added.
In April 2024, Happiest Minds announced the acquisition of Noida-based PureSoftware Technologies for a total consideration of USD 94.5 million (about Rs 779 crore). With this acquisition, Happiest Minds had said it would expand its geographical footprint, gaining a presence in Mexico and offices in Singapore, Malaysia, and Africa.
In May 2024, Happiest Minds entered into an agreement to acquire Aureus Tech Systems, a digital product engineering firm based in the United States, for USD 8.5 million (around Rs 71 crore).
"After a few years of delay, we finally completed two acquisitions--PureSoftware and Aureus whose results were integrated in Q1 of FY25. The wait had been worthwhile because both organizations were aligned with our culture, brought in excellent talent and the acquisitions were cash-accretive. The results of these acquisitions led to our growth in FY25 being well above industry average," Soota noted.
The company posted a 7.53 per cent rise profit to Rs 248.39 crore in FY24 compared to Rs 230.99 crore in the previous fiscal. Revenue for financial year 2023-24 was at Rs 1,624.66 crore, a 13.66 per cent climb over Rs 1,429.29 crore in FY23.
In October last year, the company established a new business unit, Generative AI Business Services (GBS), headed by Sridhar Mantha, the company's erstwhile CTO.
Happiest Minds has also appointed a Chief Growth Officer, Maninder Singh, who is responsible for net new sales. Singh's team is already making a visible impact by bringing in new logos, the chairman said.
"These transformational changes will show great growth in FY26 and even more so in FY27, assuring us of a healthy organic growth in FY26 and then FY27," he said.
Besides, plans are underway for the company to develop a Private Equity Company eco-system and their portfolio companies, addressing the requirement of GCC companies, and creating a large account focus strategy.
It is also enhancing its product capabilities and moving to a SaaS (Software as a solution) platform. Additionally, it announced its HaaS (Hardware as a service) solution, which is expected to launch by Q4 FY26.
"The tenth and final transformational change is our HaaS solution. The product will be delivered in two phases: first as a revolutionary product which is expected to be available for launch by Q4. The HaaS solution will require another year.
"Lest there is a fear that development of the product will require large capital expenditure and strain our resources, let me assure you that even in the first full year, the business will run on a cash-positive basis. It's also important to mention that our product is being developed through the unique bio-informatics capability of Happiest Minds," Soota said.
Happiest Minds Technologies offers digital transformation, product engineering, and infrastructure management services.
Shares of the company settled 1.96 per cent lower at Rs 624.10 apiece on the BSE on Wednesday.
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