Happiest Minds Technologies' Q4 profit drops 53% to ₹34 crore; stock declines over 2%

An Indian IT firm, Happiest Minds Technologies has reported a 52.7% decline in consolidated net profit to ₹34 crore in the March-ended quarter. It had posted a profit of ₹71.9 crore in the year-ago period, according to a regulatory filing.

Revenue for the quarter under review rose 30.5% to ₹544.5 crore, compared with ₹417.2 crore in Q4 FY24.

At 10:04 AM, shares of Happiest Minds Technologies are currently trading 2.18% lower at ₹596.40 apiece on the NSE.

Sequentially, profit dropped 32%, while revenue rose 2.5%. The firm added 14 new clients in Q4, bringing the tally to 281. For full FY25, the Bengaluru-headquartered firm logged a profit of ₹184.6 crore, a 25.6% dip from 248.3% in FY24. Revenue in FY25 was recorded 26.8% higher at 2,060.8 crore.

The company, in March, announced a slew of apex-level changes in its organisation structure with immediate effect.

As part of the rejig, Executive Vice Chairman Joseph Anantharaju was elevated to Co-Chairman and CEO, while Chairman Ashok Soota took up an additional position as the Chief Mentor of the company.

"Our strategic initiatives, along with the continued commitment of our teams, have us well positioned for strong double-digit organic growth in FY26 and beyond. Economists are projecting a slowdown in some of our largest markets, I want to emphasise that we have healthy pipelines of demand and do not see any recession-driven slowdown," Soota said.

The Chairman in March had exuded confidence about the firm delivering a healthy double-digit organic growth, not just in FY26 but also in FY27.

"The year FY25 is witnessing flat growth for some majors and negative growth for a few others. We have delivered a healthy double-digit growth, albeit most of it is inorganic. The market is predicting a US slowdown or recession. This has clouded the prospects for the Indian IT industry.

"We want to state emphatically that at Happiest Minds, we see no recession-driven slowdown...We see a good view ahead for the next two years," he had asserted.

The company's Board has recommended a final dividend of ₹3.5 per equity share of face value ₹2 for FY25.

Happiest Minds Technologies offers digital transformation, product engineering, and infrastructure management services. It has 6,632 employees across 13 countries.