Happiest Minds Q2 revenue at ₹645 crore, profit down 8% QoQ

Happiest Minds Technologies Limited (NSE: HAPPSTMNDS)

reported Q2 FY27 consolidated revenue of ₹645 crore, up about 2.5% from ₹629 crore in the previous quarter. Net profit fell about 8% to ₹62.2 crore from ₹67.6 crore. What happened: The board declared a Q2 FY27 interim dividend of 152.5%. ITC Infotech also signed a merger agreement under which it will acquire a 22.1% stake for ₹1,330 crore. Management is targeting $1 billion in revenue by FY28, with double-digit constant currency growth. Why it matters: Revenue added ₹16 crore QoQ, but profit dropped ₹5.4 crore. The data points to higher operating expenses as the reason. Margin figures are not part of this update, so the size of the squeeze is unclear. My view: A 2.5% sequential rise is steady, not fast. The $1 billion goal needs growth well above that pace, so the ITC Infotech deal carries much of the load. I don’t have the current dollar revenue run rate here, so I can’t size the gap precisely. The near-term risk is simple. If costs keep growing faster than revenue, profit stays under pressure, and integration work can add to that. What I am watching: Margin trend in the next quarterly results, regulatory approvals and integration milestones for the merger, and the constant currency growth number. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.