Happiest Minds' Q1 margin barely cleared the IT peer median
Consolidated operating margin was 18.71%, while Rs 23.69 cr of other income provided a meaningful contribution alongside Rs 90.20 cr of pre-tax profit.
Filed 27 Jul 2026, 20:05 IST · after market close · Happiest Minds Technologies Ltd (HAPPSTMNDS)
Key takeaways
- Happiest Minds' consolidated operating margin was 18.71%, just 0.03 percentage points above the 18.68% median for 14 reported IT peers.
- Other income of Rs 23.69 cr was material against consolidated profit before tax of Rs 90.20 cr, making reported profit less purely operating.
- Interest of Rs 28.46 cr and depreciation of Rs 22.63 cr reduced operating profit of Rs 117.60 cr to profit before tax of Rs 90.20 cr.
Price around the results
Q1 profit had a meaningful non-operating contribution
Happiest Minds reported consolidated revenue of Rs 628.51 cr and operating profit of Rs 117.60 cr in Q1FY27. Other income of Rs 23.69 cr was sizeable relative to profit before tax of Rs 90.20 cr, so reported earnings were not entirely driven by operations. Net profit was Rs 67.60 cr after tax of Rs 22.60 cr.
Interest and depreciation weighed on profit conversion
Interest of Rs 28.46 cr and depreciation of Rs 22.63 cr absorbed a substantial part of operating profit before tax. The reported tax rate was 25.06%, leaving consolidated EPS at Rs 4.49. The cost structure therefore matters alongside the 18.71% operating margin when assessing the quarter's profit quality.
Margin was broadly in line with reported IT peers
Happiest Minds' 18.71% operating margin was 0.03 percentage points above the 18.68% median among 14 IT peers that had reported the same quarter. It ranked eighth from the bottom, placing it around the middle of the peer set rather than at either extreme. The results were filed at 20:05 IST after market close, so there is no post-results market move to assess yet.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹629 cr |
| Other income | ₹24 cr |
| Expenses | ₹511 cr |
| Operating profit | ₹118 cr |
| Operating margin (%) | 18.71% |
| Interest | ₹28 cr |
| Depreciation | ₹23 cr |
| Profit before tax | ₹90 cr |
| Tax | ₹23 cr |
| Net profit | ₹68 cr |
| EPS (₹) | ₹4.49 |
Operating margin of 18.71% compares with a Information Technology sector median of 18.68% across 14 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 18.71% in the next quarter.
- Whether other income remains material relative to profit before tax of Rs 90.20 cr.
- Whether interest stays below operating profit of Rs 117.60 cr by a similar margin.