Margin pressure from AI investments
EBITDA margin declined to ~7.15% due to IPO and AI costs; management expects recovery only in FY28.
HAPPYSQUAREOUTSOURCING / bear-case history
Track the concerns that keep returning.
Happy Square Outsourcing · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
Dependence on government contracts
Growth heavily reliant on government orders; delays in contract execution could impact revenue.
AI cost uncertainty
Management could not quantify AI investment costs, citing variable cloud and data center expenses.
Revenue mix shift risk
Shift from 70% corporate to 50% government may increase revenue concentration risk.