Happiest Minds targets $50 mn Gen AI revenue over next three years

Happiest Minds expects $50 mn revenue from generative AI over the next three years, with 22 scalable projects in play. Q2FY26 profit rose 9% to ₹54 crore on 10% revenue growth

Mid-tier IT services company Happiest Minds Technologies sees a revenue potential of about $50 million from generative AI (Gen AI) businesses over the next three years. With this, the firm has become part of a small cohort that is calling out order book and volume growth from the newest technology that is expected to vastly improve productivity and efficiency.

 

The company announced the setting up of a Gen AI business unit in January across its six industry verticals to integrate newer features into its client’s products and services. It started with 15 projects in the proof of concept (PoC) stage. Its revenue from Gen AI was about $8 million at the end of September.

 

“We have 22 transformative use cases that have progressed into replicable projects, unlocking a GBS-led sales potential of nearly $50 million,” Joseph Anantharaju, co-chairman and chief executive officer (CEO) said.

 

Indian IT companies, both large and mid-cap, are yet to provide numbers around revenue or deal value from Gen AI projects. While most say that AI is baked into every deal structure, the tangible benefits that they are getting from those are yet to be seen.

 

HCLTech became the first company earlier this month to say that its revenue from advanced AI is now more than $100 million, representing 3 per cent of its topline. For HCL, advanced AI represents a cohort that include industry AI solutions, AI engineering, agentic AI, physical AI, AI factory and even its proprietary IPs for AI. It excludes classical AI, machine learning and robotic process automation (RPA) technologies.

 

Accenture, the only global firm that regularly makes its revenue and deal pipeline from Gen AI  public, said last month that its bookings for the fiscal were $5.9 billion.

 

“We are creating use cases and these are our solutions. We did these with two customers and as more companies adopt Gen AI, this volume can grow or remain the same,” Managing Director Venkatraman Narayanan said.

 

Research by ISG, a technology research and advisory firm, shows weaker attribution from AI directly to profit and loss (P&L) metrics, like revenue growth or cost reduction, but driving stronger improvement in areas like compliance and risk management.  

 

“Many of our solutions are highly replicable and as we take it to other customers it will lead to further accelerated growth,” Chairman and Chief Mentor Ashok Soota said during an earnings conference call, referring to the Gen AI solutions.

 

Happiest Minds reported revenue of ₹573 crore, for the second quarter of fiscal 2026, up 10 per cent from the same period, a year earlier. Profit jumped 9 per cent to ₹54 crore, while operating margin slipped 90 basis points to 17 per cent.

 

The company will look to improve efficiencies, including cost cuts, to push margins back to 18 per cent in the second half of the year. That will include focus on sales cost, bench strength and travel.