Happiest Minds Technologies has raised its revenue growth guidance for FY27 to 12.5% (in constant currency), up from the earlier estimate of 10%, buoyed by strong traction for its AI-First strategy and a robust pipeline of deals, according to Co-Chairman and CEO Joseph Anantharaju.
“We figured out that we would be able to do a 12.5% growth based on the ground-up revenue plan, the traction we were getting in the market on our AI-First strategy, conversations with customers, and a buildup in the pipeline,” he said during a conversation with NDTV Profit.
Regarding the pipeline, he said, “It is the healthiest it's been in quite a while. It's built up quite well over the last couple of quarters, and we've had a few large deals that we were able to close in the last month, month and a half, that gave us the confidence that we could shoot for a 12.5% growth.”
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Among the standout examples, the company secured a multi-million dollar contract with a prominent management institute in Southeast Asia, where AI forms the core of transforming student lifecycle management. Another deal involves taking over application platform support for a client, leveraging heavy AI integration to drive down costs across the software development lifecycle.
In the healthcare sector, Happiest Minds Technologies is building a new business platform for a major customer using an agentic model, which proved decisive in clinching the project.
Further, the company aims to hit 15% growth in FY28, it said in an exchange filing dated March 10. Anantharaju stressed that AI is no longer an optional enhancement but a fundamental requirement.
“You need to have an element of AI in anything new that you start. If you don't have it in a proposal on day one in execution, I think you will be on the back foot with your customers. That's a huge change that's happening,” he noted.
This shift is prompting clients to demand greater ownership from vendors, moving away from traditional time-and-material models towards fixed-price or managed services arrangements that better capture the productivity gains from AI tools.
Beyond the deals already secured, the Bengaluru-headquartered IT firm is also in advanced discussions with several clients and private equity-backed companies on modernising legacy systems using AI tools. These initiatives focus on tackling technology debt and upgrading ageing platforms, an opportunity Anantharaju believes could translate into new contracts.
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“So this again is an opportunity, but this is still in the pipeline and we're quite confident that a couple of these should close in Q1 FY27,” the top executive said.
Shares of Happiest Minds Technologies were trading 1.08% lower at Rs 407.25 apiece on the NSE at 2:29 p.m., while the benchmark Nifty50 was 0.62% down at 23,719.40.
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