Happiest Minds Technologies Ltd Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chirag Kachhadiya - Ashika Stock Broking Limited - Analyst : Hello, am I audible?

Question: Chirag Kachhadiya - Ashika Stock Broking Limited - Analyst : Yeah. Yeah. Okay. So thanks for the opportunity. I have a question on the quarter on quarter growth for a say. So if I look at the performance, it's a little lower than what are some of the years in mid-cap and sponsor categories reported. Can you throw some light what's that? Why we know, we think that I was in terms of growth? And second, with respect to the ad tech vertical, what's the trajectory from here onwards? Venkatraman Narayanan - Happiest Minds Technologies Ltd - Chief Financial Officer, Managing Director, Executive Director, Member of the Executive Board As I mentioned, we had nice -- e had nicely gone on, we had ramped up to about $1.5 million with that customer that I talked about, which unfortunately we had to stop work starting January 1. During a quarter if you have to take a $1.5 million drop in revenues, but still cover up for that and come out with 1.1% growth in constant currency and then 2.6%. I think if you adjust for that, We are doing, we have done pretty well. I'll turn this over to Joseph for the second part.

Question: Aditi Patil - ICICI Securities - Analyst : Thank you for taking my question. My first question is on BFSI and healthcare vertical. Firstly, for the quarter, there was a decline in healthcare vertical. Can you let us know what led to this decline, similarly in BFSI vertical, we saw a sharp jump in revenue? So apart from how much of this was contributed by Artha banking platform and for a longer term view, we are focusing on BFSI and healthcare vertical. So what is our growth strategy here in terms of what kind of subsegments or clients are we targeting in this vertical, in these two verticals?

Question: Aditi Patil - ICICI Securities - Analyst : Okay, got it. My next. question is on you have announced the healthcare product in bioinformatics so what would be the amount of CapEx of which you would be investing for the same in FY26?

Question: Aditi Patil - ICICI Securities - Analyst : Okay, got it. And in the IMSS vertical, if we see the segmental margins, there was a sharp decline in margins both on YoY and QoQ basis. What led to this decline?

Question: Aditi Patil - ICICI Securities - Analyst : Okay, got it. Okay, that's it from my side for now. Thank you.

Question: Jeevesh Pandey - Centrum - Analyst : Am I audible? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 3:30AM, HAPP.NS - Q4 2025 Happiest Minds Technologies Ltd Earnings Call

Question: Jeevesh Pandey - Centrum - Analyst : Am I audible now? Yes, please go ahead, [Piyush]. So broadly, I want to know what are the key projects which you are doing in the generative AI space for your clients?

Question: Jeevesh Pandey - Centrum - Analyst : Yeah, thanks. Thanks for giving me the opportunity, sir. So given some softness in the ad tech sector, how are we capitalizing on the high growth verticals like healthcare and BFSI? And what are the specific strategies will be used to drive the growth in this vertical? And one more thing in this quarter, our healthcare vertical had a sequential decline. So is it related to any client specific thing or issues overall?

Question: Jeevesh Pandey - Centrum - Analyst : Thanks, Ashok. Okay got it, sir. Sir on BFSI?

Question: Jeevesh Pandey - Centrum - Analyst : Thanks, thanks. That's all from my side. Thanks for the elaborate answer.

Question: Sumeet Jain - CLSA - Analyst : Yeah, hi, thanks for the opportunity. Actually, my questions were again around the Generative AI Business Unit. So, you have started disclosing your revenue proportion from that particular business segment and it's just 2% of your overall revenue. And when we compare that, you know, what Accenture or Capgemini are giving, it's almost 5% to 6% of their overall business. So, is it that you are slightly behind the larger peers out there or is it the definition is different? Can you just explain how easy it is for a company like Happiest Minds with a $200 million to $250 million revenue to actually pivot their business much more faster towards a fast growing service line?

Question: Sumeet Jain - CLSA - Analyst : I got it. That's helpful. And just digging deeper, can you just explain the unit metrics out there or the contract characteristics out there as to how is the pricing, the profitability and are they more fixed price or time and material based? Can you just throw some light on that?

Question: Sumeet Jain - CLSA - Analyst : Got it. That's very helpful. And my last question is around your utilization. mean, you guys obviously are operating at 77%, 78% levels. But when I look at the larger peers, they are at mid-80s, Accenture is at 91%. So is there like a difference in the way these are being calculated across companies?

Question: Sumeet Jain - CLSA - Analyst : Got it, that's very helpful. That's all from my end, and all the best to the team.