Happiest Minds records over 25% sequential drop in Q3 PAT

Happiest Minds Technologies has reported 25.4% fall in consolidated net profit to Rs 40.30 crore despite a 2.4% increase in revenues to Rs 587.56 crore in Q3 FY26 as compared with Q2 FY26.

In dollar terms, the revenue was higher by 1.0% while in constant currency terms, it rose by 1.2% sequentially.

Operating margin improved by 3.6% to Rs 100.87 crore in Q3 FY26 from Rs 97.33 crore in Q2 FY26. Operating margin as percent of sales for Q3 FY26 was 17.4% as against 17.0% in Q2 FY26.

Profit before tax in Q3 FY26 stood at Rs 54.21 crore, down by 25.4% from Rs 72.66 crore in Q2 FY26.

The company added 11 clients during the quarter, taking to total count to 297 as on 31 December 2025.

At the end of the December 2025 quarter, employee headcount stood at 6,548 and trailing 12-month attrition rate was 17.4%.

Ashok Soota, chairman & chief mentor, said: With AI First. Agile Always., we have launched AI First as our 11th strategic transformation, supported by 11 strategic programs that together define how Happiest Minds will build, deliver, and scale value in an AI-driven world.

We have already made considerable progress across several of these programs, and we expect this momentum to accelerate the growth of Happiest Minds. This is clearly visible in how AI is being operationalized across our company and for our clients.

I would also like to take cognisance of a recent AI-related announcement that has created some turbulence in global markets for software companies. I want to assert that this development represents an opportunity, not a threat, for Happiest Minds and, we believe, for other IT services companies as well.

Happiest Minds Technologies and IT Solutions Company enables digital transformation for enterprises and technology providers by delivering seamless customer experiences, business efficiency, and actionable insights.

The scrip rose 0.51% to currently trade at Rs 397.75 on the BSE.

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