HAPPSTMNDS

Happiest Minds (HAPPSTMNDS) reported 25.6% YoY CC growth in FY25, lower than its guidance of 27-28%. Organic growth for FY25 stood at 3.2% as per our estimate. Its organic growth has been muted and lower than mid-cap peers at 7%/3% in FY24/25, respectively. Management mentioned its target of achieving USD 1bn by FY31 is likely to be pushed forward and it would come up with revised timelines by H2FY26. It expects healthy double digit organic growth in FY26-27. Outlook However, we continue to model 10%/11% YoY CC growth for FY26/27E, including 2% contribution from GAVS acquisition. Cut EPS by 14%/4% for FY26/27E led by cut in margin estimates, factoring in weak exit margins and investments for growth. We continue to value HAPPSTMNDS at 20x on FY27E EPS of INR 20