Happiest Minds Technologies Ltd. (HAPPSTMNDS) AI Stock Analysis

• Market Cap: ₹62.95B
• Dividend Yield: 1.26%
• Average Volume (3M): 32.69K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.76
• Revenue Growth: 21.31%
• EPS Growth: -16.27%
• Country: IN
• Employees: 4,884
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.59
• Shares Outstanding: 152,274,810
• 10 Day Avg. Volume: 50,509
• 30 Day Avg. Volume: 32,690
• PEG Ratio: -1.81
• Price to Book (P/B): 5.67
• Price to Sales (P/S): 4.33
• P/FCF Ratio: 39.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹438.00 ▼(-6.01% Downside)

Happiest Minds Technologies Ltd. has a strong financial foundation with solid revenue growth and profitability, which is the most significant factor in its score. However, the technical analysis indicates bearish momentum, and the stock appears overvalued based on its P/E ratio. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Sustained ~21% revenue growth indicates durable demand for its cloud, data, security and digital services. Consistent top-line expansion from 2020–2025 reflects scalable delivery and client adoption, supporting reinvestment in talent, IP and longer-term managed-service contracts.

Margin Robustness

A gross margin averaging above 30% and solid net margins point to structural pricing power in higher-value digital and managed services. This margin base supports sustainable reinvestment, buffers project mix volatility, and underpins long-term cash generation and profitability.

Cash Generation

Rising operating cash flow and growing free cash flow demonstrate strong cash generation ability. Durable cash conversion (despite noted caveats) allows funding of growth initiatives, investment in capabilities, and reduced reliance on external capital for scaling managed-service offerings.

Negative Factors

Rising Leverage

An increased debt-to-equity ratio reduces financial flexibility and raises interest and refinancing risk. Higher leverage can constrain hiring, M&A or capex choices and makes the business more sensitive to macro tightening, affecting long-term strategic optionality.

Margin Compression

Declines in EBIT and EBITDA margins suggest rising operating costs or an unfavorable project/pricing mix. Persistent margin erosion would reduce cash available for reinvestment and heighten dependency on utilization and pricing discipline to restore durable profitability.

Cash Conversion Risk

A weak operating-cash-flow-to-net-income signal, coupled with negative EPS growth, points to earnings quality and timing risks. Poor conversion can strain liquidity, limit self-funding of growth, and require corrective actions to stabilize cash flow reliability for long-term plans.

Happiest Minds Technologies Ltd. Business Overview & Revenue Model

Company Description

Happiest Minds Technologies Limited offers IT solutions and services in India, the United States, Canada, the United Kingdom, Australia, the Netherlands, Singapore, Malaysia, and the Middle East. It operates through three segments: Infrastructure Management & Security Services (IMSS); Digital Business Solutions (DBS); and Product Engineering Services (PES). The IMSS segment provides security services, including cyber and infrastructure security, governance, risk and compliance, data privacy and security, identity and access management, and threat and vulnerability management; infrastructure services comprises of DC and hybrid cloud services, workspace services, service automation, database and middleware services, and software defined infrastructure services; and advisory, transformation, managed and hosted services, and secure intelligence solutions. The DBS segment offers enterprise applications and customized solutions, comprising of advisory, design and architecture, custom-app development, package implementation, and testing and on-going support services to IT initiatives. The PES segment assists software product companies in building products and services that integrates mobile, cloud, and social technologies. The company also provides Internet of Things (IoT) solutions, consisting of digital strategy creation consultation, end-to-end system integration on IoT platforms, IoT security and managed services, implementation of IoT roadmap, and derivation of insights. In addition, it offers analytics/artificial intelligence solutions, including implementation of advanced analytics using artificial intelligence, machine learning and statistical models, and engineering big data platforms; and digital process automation solutions, such as robotic process automation, intelligent business process management, and cognitive automation using AI and machine learning based models. The company was incorporated in 2011 and is headquartered in Bengaluru, India.

How the Company Makes Money

Happiest Minds generates revenue primarily through its IT services and solutions, which include consulting, software development, and managed services. The company's revenue model is largely project-based, with clients from various industries engaging in long-term contracts for technology services. Key revenue streams include digital transformation services, cloud solutions, and analytics services. Additionally, the company benefits from strategic partnerships with leading technology providers and platforms, enabling it to expand its service offerings and enhance its market presence. These partnerships, combined with a growing demand for digital solutions, contribute significantly to its earnings.

Happiest Minds Technologies Ltd. Financial Statement Overview

Summary

Happiest Minds Technologies Ltd. showcases solid financial performance with strong revenue growth and profitability. The balance sheet reflects a stable financial position, although increased leverage requires attention. Overall, the company is in a good position to capitalize on future opportunities but should manage its debt levels carefully.

Income Statement

Happiest Minds Technologies Ltd. demonstrates strong revenue growth, with a consistent increase from 2020 to 2025. The gross profit margin has been robust, averaging above 30%, and the net profit margin shows solid profitability. However, there was a decrease in EBIT and EBITDA margins in the latest year, which could point to increased operational costs.

Balance Sheet

The company's balance sheet shows strong equity growth, with a healthy equity ratio indicating financial stability. The debt-to-equity ratio increased in 2025, suggesting higher leverage that might pose risks if not managed properly. The return on equity remains strong, reflecting efficient use of shareholders' capital.

Cash Flow

Operating cash flow has consistently grown, supporting ongoing business operations. Free cash flow has increased, indicating good cash generation capability. However, the operating cash flow to net income ratio suggests a need for better conversion of income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.47B	20.61B	16.25B	14.29B	10.94B	7.73B
Gross Profit	7.06B	6.96B	3.66B	6.57B	5.10B	2.03B
EBITDA	4.57B	4.44B	4.33B	3.73B	2.87B	2.15B
Net Income	1.91B	1.85B	2.48B	2.31B	1.81B	1.62B
Balance Sheet
Total Assets	33.36B	33.59B	22.48B	16.41B	11.25B	9.22B
Cash, Cash Equivalents and Short-Term Investments	16.06B	6.66B	12.30B	5.32B	6.22B	5.07B
Total Debt	3.84B	12.44B	5.12B	5.34B	2.50B	1.93B
Total Liabilities	17.01B	17.84B	7.68B	8.02B	4.59B	3.76B
Stockholders Equity	16.34B	15.75B	14.80B	8.39B	6.66B	5.46B
Cash Flow
Free Cash Flow	0.00	2.25B	2.04B	677.60M	1.64B	1.42B
Operating Cash Flow	0.00	2.36B	2.13B	2.07B	1.68B	1.43B
Investing Cash Flow	0.00	-7.62B	-4.66B	-3.51B	-960.80M	-2.84B
Financing Cash Flow	0.00	4.99B	3.63B	720.70M	-907.80M	1.70B

Happiest Minds Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 466.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 466 is above the 20-day moving average (MA) of 425.54, above the 50-day MA of 463.03, and below the 200-day MA of 545.96, indicating a bearish trend. The MACD of -17.42 indicates Negative momentum. The RSI at 34.17 is Neutral, neither overbought nor oversold. The STOCH value of 19.64 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIGNITITEC	80 Outperform	₹44.60B	14.72	―	―	13.58%	104.94%
RSYSTEMS	73 Outperform	₹44.83B	23.73	―	3.06%	8.36%	36.68%
SONATSOFTW	69 Neutral	₹88.71B	19.86	―	2.00%	12.39%	59.77%
MASTEK	65 Neutral	₹63.64B	16.77	―	1.62%	11.91%	-1.02%
BSOFT	63 Neutral	₹116.58B	25.06	―	1.42%	-2.00%	-25.81%
HAPPSTMNDS	62 Neutral	₹62.95B	31.77	―	1.26%	21.31%	-16.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Happiest Minds Technologies Ltd. Corporate Events

Happiest Minds Clarifies Gavs Deal, Confirms Completion of Middle East Integration

Happiest Minds Technologies Limited issued a clarification correcting an earlier regulatory filing that had mistakenly stated it had acquired Gavs Technologies Limited in its entirety. The company reaffirmed that, as previously disclosed, it had entered into a share purchase agreement with Gavs Technologies Limited to acquire 100% business interest in its Middle East operations through the acquisition of InnovazIT Technologies LLC in Dubai, Gavs Technologies LLC in Oman, and Gavs Technologies Saudi Arabia for Telecommunications and Information Technology. Happiest Minds confirmed that the integration of these Middle East entities has been completed as of January 5, 2026, signaling the operational consolidation of these assets while emphasizing that the earlier misstatement was a clerical, unintentional error.

Happiest Minds Honored for People Analytics Excellence at SHRM Awards

Happiest Minds Technologies Limited has been recognized as the Runner-up for Excellence in People Analytics at the SHRM Excellence Awards 2025. This accolade underscores the company’s commitment to advancing its people practices through data analytics and AI, particularly with its People One Dashboard, which enhances decision-making and aligns with long-term business goals.

Happiest Minds Unveils ELAIRA to Transform Enterprise Support

Happiest Minds Technologies has launched ELAIRA, an intelligent digital co-worker designed to enhance enterprise support operations. ELAIRA integrates with the company’s ELLIPSE 2.0 platform to provide faster resolutions, improve user experience, and optimize costs. The platform offers multilingual self-service capabilities and advanced features for Microsoft Teams, aiming to improve compliance and operational efficiency in regulated environments. ELAIRA promises significant operational benefits, including reduced ticket handling times and improved resolution rates, contributing to substantial cost savings over time.