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Happiest Minds Technologies Ltd. (HAPPSTMNDS) AI Stock Analysis

IN:HAPPSTMNDS

Happiest Minds Technologies Ltd.

(NSE:HAPPSTMNDS)

Select Model
Rating:59Neutral
Price Target:INR 325.00â–²(9.10% Upside)
Action:reiterated
Date:09/26/26

The score is held back primarily by weak technicals (price below key moving averages and bearish momentum). Financial performance is steady but mixed, with strong free cash flow offset by significant margin compression and higher leverage. Valuation is moderately supportive with a reasonable P/E and a ~2% dividend yield.

Positive Factors
Diversified Digital ServicesThe company addresses multiple enterprise technology needs across consulting, implementation, and managed services. This breadth can support cross-selling, diversify demand across technology domains, and make its client relationships more durable as enterprises continue modernizing systems.
Negative Factors
Sharp Margin CompressionThe steep decline in gross, EBITDA, and operating margins signals weaker earnings quality and reduced efficiency than in earlier years. Even with positive net income, sustained margin pressure could limit profit growth, reinvestment capacity, and resilience if revenue expansion remains modest.

Happiest Minds Technologies Ltd. (HAPPSTMNDS) vs. iShares MSCI India ETF (INDA)

-50%-40%-30%-20%-10%0%10%IN:HAPPSTMNDS-40.64%INDA-12.02%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
INR 51.66B
Dividend Yield
2.15%
Average Volume (3M)
103.72K
Price to Earnings (P/E)
20.1
Beta (1Y)
0.56
Revenue Growth
11.50%
EPS Growth
16.69%
Country
India
Employees
6,500
Sector
General
Sector Strength
55
Industry
Information Technology Services

Happiest Minds Technologies Ltd. Business Overview & Revenue Model

Company Description

Happiest Minds Technologies Limited delivers information technology solutions and services across numerous international markets, including India, the United States, Canada, the United Kingdom, Australia, the Netherlands, Singapore, Malaysia, and the...

How the Company Makes Money

Happiest Minds primarily earns revenue by delivering IT services and digital transformation work to enterprise customers under commercial contracts. Key revenue streams generally include: (1) Project-based services where the company is paid for defin...

Happiest Minds Technologies Ltd. Financial Statement Overview

Summary

Financials are mixed: revenue has grown over multiple years but slowed materially in FY2025 with only a modest improvement in FY2026. Profitability remains positive (FY2026 net margin ~9%), but sharp margin compression (gross margin down from mid-40% to mid-teens and weaker operating/EBITDA margins) reduces earnings quality. Cash flow is a relative strength with strong FY2026 free cash flow and ~0.99 FCF-to-net-income conversion, though operating cash efficiency versus revenue has weakened.

Income Statement

68Positive

Balance Sheet

60Neutral

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue23.15B23.15B20.61B16.25B14.29B10.94B
Gross Profit5.36B7.54B6.96B3.66B6.57B5.10B
EBITDA4.70B4.70B4.44B4.33B3.73B2.87B
Net Income2.13B2.13B1.85B2.48B2.31B1.81B
Balance Sheet
Total Assets36.25B36.25B33.59B22.48B16.41B11.25B
Cash, Cash Equivalents and Short-Term Investments14.16B14.16B6.66B12.30B5.32B6.22B
Total Debt14.87B14.87B12.44B5.12B5.34B2.50B
Total Liabilities19.36B19.36B17.84B7.68B8.02B4.59B
Stockholders Equity16.89B16.89B15.75B14.80B8.39B6.66B
Cash Flow
Free Cash Flow1.22B2.41B2.25B2.04B677.60M1.64B
Operating Cash Flow1.23B2.44B2.36B2.13B2.07B1.68B
Investing Cash Flow669.50M-1.89B-7.62B-4.66B-3.51B-960.80M
Financing Cash Flow-1.75B-591.60M4.99B3.63B720.70M-907.80M

Happiest Minds Technologies Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price297.90

Price Trends

50DMA339.14Negative
100DMA354.66Negative
200DMA367.87Negative

Market Momentum

MACD-7.97Negative
RSI37.48Neutral
STOCH14.58Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAPPSTMNDS, the sentiment is Negative. The current price of 297.90 is below the 20-day moving average (MA) of 310.19, below the 50-day MA of 339.14, and below the 200-day MA of 367.87, indicating a bearish trend. The MACD of -7.97 indicates Negative momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 14.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HAPPSTMNDS.

Happiest Minds Technologies Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IN:HAPPSTMNDS against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IN:COFORGEIN:COFORGE82OutperformINR 908.23B39.86―0.58%41.21%84.56%
IN:PERSISTENTIN:PERSISTENT81OutperformINR 1.00T52.58―0.30%27.10%7.08%
IN:HEXTIN:HEXT79OutperformINR 306.36B21.79―3.59%13.45%0.28%
IN:LTIMIN:LTIM73OutperformINR 1.25T26.78―2.54%14.67%7.26%
IN:MPHASISIN:MPHASIS70NeutralINR 481.48B25.19―2.46%13.69%9.34%
IN:HAPPSTMNDSIN:HAPPSTMNDS59NeutralINR 45.36B20.07―2.15%11.50%16.69%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-40%-20%0%IN:HAPPSTMNDSIN:COFORGEIN:LTIMIN:MPHASISIN:PERSISTENTIN:HEXTDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
IN:HAPPSTMNDS and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IN:HAPPSTMNDSHappiest Minds Technologies Ltd.297.90-206.97-40.99%
IN:COFORGECoforge Limited2050.00262.4514.68%
IN:LTIMLTIMindtree Limited4226.30-1378.49-24.59%
IN:MPHASISMphasis Limited2521.50-190.49-7.02%
IN:PERSISTENTPersistent Systems Limited6045.00159.642.71%
IN:HEXTHexaware Technologies Limited501.40-167.80-25.08%

Happiest Minds Technologies Ltd. Corporate Events

Happiest Minds to Shift Registered Office from Karnataka to West Bengal

Oct 6, 2026

Happiest Minds Technologies has notified stock exchanges that its shareholders have approved shifting the company’s registered office from the state of Karnataka to the state of West Bengal. The company published the required public notice in E...

Happiest Minds Publishes Postal Ballot Notice, Reinforces SEBI Compliance

Sep 3, 2026

Happiest Minds Technologies Ltd. is an Indian IT services and digital transformation company headquartered in Bengaluru, listed on BSE and NSE. It focuses on enterprise technology solutions while maintaining strong corporate governance and transparen...

Happiest Minds Promoters Sell 22% Stake as Board Clears Merger with ITC Infotech

Aug 31, 2026

Promoter Ashok Soota and Ashok Soota Medical Research LLP have agreed to sell 22.106% of Happiest Minds Technologies’ equity share capital, totaling 33.66 million shares, to ITC Infotech India Limited for about ₹1,330 crore in two tranche...

Happiest Minds to Merge with ITC Infotech After Promoter Stake Sale

Aug 31, 2026

Promoter Ashok Soota and Ashok Soota Medical Research LLP have agreed to sell a combined 22.106% stake in Happiest Minds Technologies to ITC Infotech India via a secondary share purchase worth about INR 1,329.7 crore, executed in two tranches at pric...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 26, 2026