HAPPIEST MINDS STRUGGLES TO MEET 12.5% GROWTH

HAPPSTMNDS Happiest Minds Technologies is facing challenges in achieving its 12.5% growth ambition for the current financial year, as delays in deal closures, weakness in the EdTech segment and slower-than-expected revenue generation from its digital banking platform weigh on business performance. Despite reporting improved operating margins and steady growth in its generative artificial intelligence business, the Bengaluru-based IT services company acknowledged that its growth momentum remains below earlier expectations. To be honest, we are lagging behind, CEO Joseph Anantharaju told Moneycontrol in an interview while discussing the company's progress towards its 12.5% growth target. Anantharaju attributed the slowdown to multiple factors, including deals being pushed into subsequent quarters, challenges in sectors such as EdTech and delays in expected revenue from Arttha, the company's digital banking platform. However, the management remains hopeful that a strong deal pipeline could help the company regain some lost momentum. Key opportunities include one large deal and a couple of other potential contracts involving Arttha, along with improving traction for its digital platform designed for universities. The comments come after Happiest Minds reported a 12.5% YoY increase in consolidated revenue for the quarter ended September 30, 2026. Revenue also registered a 2.7% sequential growth in rupee terms.