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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹522 Cr
verified against source
Revenue YoY
28%
reported change
EBITDA
₹119 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Happiest Minds delivered its best growth in two years, with Q2 FY25 revenue of INR 549 Cr, up 28% YoY and 12.7% QoQ in constant currency. EBITDA margin of 21.7% was impacted by wage hikes (230bps) and Gen AI investments (150bps), but adjusted margins remain healthy. The company reiterated its 30-35% revenue growth guidance for FY25, driven by cross-sell from PureSoftware/Aureus acquisitions, a strong pipeline for Arttha banking platform, and new logo wins from the revamped sales engine. Gen AI business (GBS) has 120 specialists working on 25+ projects, with replicable solutions gaining traction. Risks include lumpy Arttha revenue, margin pressure from continued investments, and potential furloughs in Q3.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated full-year revenue growth guidance of 30-35%, expecting Q4 to be stronger than Q3 due to large deal closures.
- EBITDA margin is expected to remain in the 20-22% range for the full year, with Q3 impacted by fewer working days and leadership pay hikes.
- Management expects to close at least two large Arttha banking platform license deals in the next two quarters, with Q4 being the strongest.
- A new delivery center with 120-150+ seats in Hyderabad will become operational during Q3 FY25 to support capacity expansion.
Risks flagged
- Arttha banking platform revenue is lumpy and dependent on large deal closures; any delay could affect H2 growth targets.
- Investments in Gen AI, new sales team, and Arttha may keep margins at the lower end of the 20-22% range, with limited near-term upside.
- Q3 typically has fewer working days due to vacations and client furloughs, which could impact sequential revenue growth.
- The declining onsite mix (from 15.5% to 11.4%) could constrain revenue per employee growth, though it improves margins.
Key quotes
- The results demonstrate our continued ability to continue to manage our business with rigor and discipline in a very dynamic business environment.
- We are hopeful of meeting our revenue growth projections of 30%-35% for this fiscal.
- We have developed strong capabilities in bioinformatics, which are unparalleled in the industry.
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