IT firm Happiest Minds confident to grow in double digits next fiscal

Indian IT companies - both large and medium - are bracing themselves for another uncertain year as the industry is yet to assess the impacts of tariffs on the US economy

Mid-tier IT company Happiest Minds expects to grow in double digits next financial year. Even though the macroeconomic situation is challenging, the company said it is unlikely to be affected in the near term.

 

Indian IT companies – both large and medium – are bracing for another uncertain year as the industry is yet to assess the impact of tariffs on the US economy.

Largecap companies grew 0-3.8 per cent in constant currency in Q3FY25. Midcaps outpaced larger peers again with 0.2-8.4 per cent quarter-on-quarter (Q-o-Q) growth, led by Coforge.

 

“We see no recession whatsoever,” said Happiest Minds chairman Asok Soota when asked about the challenges facing the Indian IT industry. He added, “Most of the growth for FY26 will be organic and it will be a healthy double-digit one.”

 

 

Soota is banking on a series of initiatives that the company has undertaken in recent times. It includes creation of the GenAI business unit, verticalisation into six industry groups and induction of a chief growth officer.

 

On Wednesday, the IT industry stalwart – who spent years in Wipro before starting Mindtree – outlined other areas of focus. These will help propel the company to achieving $1 billion in revenue by 2031 from about $180 million.

 

Happiest Minds will double down its focus on private equity (PE)-backed firms, as it sees them as steady revenue generators in six months, co-chairman and chief executive Joseph Anantaraju said. It will also work closely with global capability centres (GCCs).

 

He said, “For companies that are contemplating a GCC, we would help them understand the opportunity, risk, legal and compliance needs, scale requirements, and talent needs to craft an appropriate strategy and facilitate their entry directly or through Happiest Minds. For GCCs that have been around for an extended period, we would like to focus on enhancing their effectiveness. We would aid their innovation strategies by leveraging GenAI and automation, modernise technology landscape and leverage data to become more core in their company’s landscape.”

 

The company will also focus on large deal accounts by pushing the boundaries of its engagement with clients. As part of the move, smaller accounts – with revenue of $2-3 million – would be pushed to generate about $5 million revenue. And, accounts yielding $5-10 million will be pushed to the $20 million category.

 

There will be dedicated client partners to give these accounts prioritised focus.

 

A sizeable focus will also be on products and software as a service (SaaS) solutions approach. India's SaaS industry is expected to touch $100 billion in 2035, from $20 billion currently. It would be helped by AI-led discontinuities in automation, cost-effective software development, expanding small and medium business adoption, and deepening government digital initiatives, according to a report by SaasBhoomi, a SaaS platform.