Shares of Happiest Minds Technologies witnessed a sharp rally over the past two trading sessions after the IT services company upgraded its growth outlook, driven by accelerating momentum from its artificial intelligence (AI) strategy.
The stock surged over 17% in the previous session and extended gains on Wednesday with another over 10% rise to ₹441.70 on the National Stock Exchange of India, taking its two-day rally to more than 25%.
During the session, the stock opened at ₹407.60, touched an intraday high of ₹446.35, and traded with strong volumes exceeding 1.25 crore shares, indicating strong investor interest.
What triggered the rally?
The sharp rally in Happiest Minds shares came after the company revised its revenue growth expectation for FY27 to 12.5%, up from its earlier projection of 10%, citing strong traction from its AI-focused strategy.
The Bengaluru-based IT firm said the revised guidance reflects accelerating demand across sectors and improved traction from its recently launched ‘AI First’ strategy, which was introduced in February 2026.
The initiative aims to reorient the company’s operating model, service delivery architecture and client engagement philosophy around artificial intelligence, positioning the company to capture rising enterprise demand for AI-driven digital transformation.
Generative AI services gaining traction
Happiest Minds said its Generative AI Business Services (GBS) initiative has significantly matured in terms of capabilities and client acceptance.
The GBS unit was originally launched as part of 10 strategic initiatives announced in March 2025, which initially set the company’s growth expectation at 10% in constant currency over a four-year horizon.
However, following a fresh business assessment and improved client pipeline, the company now expects FY27 revenue growth of 12.5%, and said the improved momentum could also support around 15% growth in FY28.
Management commentary
Joseph Anantharaju, Co-Chairman and CEO of Happiest Minds Technologies, said the company is witnessing broad-based growth across sectors driven by strong AI adoption.
According to him, sectors such as financial services, healthcare, hi-tech and manufacturing are seeing rapid acceleration in digital and AI-led transformation.
“The enhanced pipeline and strong business momentum we are experiencing validates our AI First strategy and reinforces our confidence in delivering superior outcomes for clients and stakeholders,” Anantharaju said.
Managing Director Venkatraman Narayanan said the revised growth outlook is not aspirational but grounded in execution, client trust and proven delivery.
Financial performance
Happiest Minds reported revenue of ₹2,060.8 crore in FY25, marking a 26.8% increase compared with the previous fiscal year.
However, the company’s profit declined 25.6% to ₹184.6 crore in FY25, indicating margin pressures despite strong revenue growth.
Valuation snapshot
The stock continues to trade at relatively premium valuation levels.
According to market data, Happiest Minds currently trades at a price-to-earnings (P/E) ratio of around 53.05, while the price-to-book (P/B) ratio stands at about 5.76.
The company’s return on equity (ROE) is around 12.34%, while return on capital employed (ROCE) stands at approximately 13.70%. The stock offers a dividend yield of about 0.99%, with a debt-to-equity ratio of 0.56.
Stock performance
Even after the strong rally, Happiest Minds shares remain below their 52-week high of ₹708, while the 52-week low stands near ₹330.20, according to exchange data.
The sharp two-day spike highlights the strong investor appetite for companies that are demonstrating tangible traction in AI-led services, a theme that continues to dominate the global technology sector.