Happiest Minds Technologies Q1 Results Review - FY25 Revenue Guidance Trimmed: ICICI Securities

ICICI Securities Report

Happiest Minds Technologies Ltd. operating performance undershot estimates with both margin and revenue missing their marks. In addition, M&A-led one-time charges and higher depreciation and amortisation charges led to a 30% miss on profit after tax versus our estimates.

Management trimmed FY25 revenue guidance to 30–35% versus its earlier envisaged 35–40% YoY growth, citing delay in consolidation of acquired entities. Management expects continued business momentum.

We cut our FY25/26 earning per share estimates by 19%/15%, factoring in the Q1 FY25 operational miss and higher depreciation charges going ahead.

We forecast 31%/25% USD revenue growth for FY25/FY26 and introduce our FY27 forecast with Rs 28.6 earning per share. Retain Hold with a revised target price of Rs 750 (average of price to earning Rs 610 and discounted cash flow of Rs 890).

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