Editorial illustration for Happiest Minds Q2 EBITDA rises 18.1% YoY as revenue gains 12.5%
Happiest Minds Q2 EBITDA rises 18.1% YoY as revenue...
Happiest Minds Technologies reported revenue of ₹645.43 crore for the quarter ended September 30, up 12.5% year-on-year and 2.7% sequentially. EBITDA climbed 18.1% YoY to ₹142.04 crore, pushing margins to 21.3% from 20.2% a year earlier. Net profit rose 15.1% YoY to ₹62.19 crore, while adjusted PAT grew 20.7% to ₹79.11 crore. The sequential picture looked weaker: reported PAT fell 8% and adjusted PAT dropped 1.8% against the June quarter, with EBITDA growth of just 0.5% QoQ trailing revenue growth.
The Bengaluru-based IT services firm had said it would start breaking out AI and AI-led revenue by the end of Q2 FY27. That figure did not appear in this set of results, even as the company's Generative AI Business Services line grew nearly 50% sequentially in Q3 FY26. The quarter also carried a one-off cost: ₹3.98 crore in exceptional expenses tied to the proposed merger with ITC Infotech, a deal that would create a combined workforce of more than 19,000 employees with an internal target of $1 billion in annual revenue by FY28.
Happiest Minds Technologies' Generative AI Business Services revenue grew nearly 50% sequentially in Q3 FY26. However, the IT services company did not disclose a separate AI revenue figure in its Q2 FY27 results, despite previously indicating that it planned to report AI and AI-led revenue by the end of Q2 FY27.
Why this matters Happiest Minds posted solid numbers this quarter, margins expanding, EBITDA up 18.1%, revenue growth holding steady at 12.5% YoY. That's the easy part to report. The harder part, and the one we actually care about, is the AI disclosure that didn't show up.
Management told investors it would break out AI and AI-led revenue by the end of Q2 FY27. That deadline came and went with no figure. We got a sequential growth stat for Generative AI Business Services from a different quarter instead, which reads more like a selective highlight than real reporting.
For anyone building AI products or watching how IT services firms monetize the technology, this is the pattern worth tracking: companies are happy to cite a flattering growth percentage from Gen AI work, but reluctant to show the actual revenue base behind it. Until Happiest Minds puts a number next to that growth rate, there's no way to judge whether AI services are a meaningful contributor or a rounding error dressed up in a strong headline stat. Watch the Q3 FY27 call for whether that promised breakdown finally shows up.
Related Reading
Business & Startups Nordic pilot adds Gemini for Education, NotebookLM to boost AI literacy
Business & Startups Kling launches Video O1, all-in-one model with MVL bridge using transformer
Business & Startups DeepSeek Seeks More Capital Weeks After USD 7B Funding Round
From Archives Three Early Claude Code Testers Leave Anthropic Within 10 Days
From Archives Sarvam AI's Prism Decision Model Scores 71.8 on Jev-Like Index
Further Reading
- Papers with Code - Latest NLP Research - Papers with Code
- Hugging Face Daily Papers - Hugging Face
- ArXiv CS.CL (Computation and Language) - ArXiv
