IT and digital transformation firm Happiest Minds anticipates double-digit organic growth in FY26 and FY27, driven by the momentum gained through its 10 strategic transformational initiatives. Chairman & Chief Mentor, Ashok Soota expressed confidence in the company’s outlook, despite concerns over a potential US slowdown or recession impacting the Indian IT sector.
Addressing the media, Soota, the company’s founder, said, “While in FY25, some major companies are witnessing flat growth and others, negative growth, we delivered a healthy double-digit growth, albeit most of it is inorganic. We also see no recession-driven slowdown. “
In FY25, the company undertook several transformational initiatives like reorganising on an IG-wise basis and creating five new industry groups, recognising the potential of GenAI by creating an independent business unit head and appointing a Chief Growth Officer responsible for net new sales.
Future plans
Looking ahead, it plans to develop a private equity company eco-system and portfolio companies, address the requirements of GCC companies and create a large accounts focused strategy which will take about 10 – 15 of the company’s $2-3-million accounts, and raise them to $10-20 million.
On the product front, the company is enhancing its product capabilities and transitioning to a SaaS-based model, ensuring both solutions will coexist. Furthermore, it is set to launch a Hardware as a Service (HaaS) offering in two phases: with the product to be introduced by Q4, followed by the launch of the HaaS solution a year later.
Elaborating on these changes, Joseph Anantharaju, Co-Chairman & CEO, shared, “Over the last 13-14 years, we have acquired many logos of consequences and effectively deployed our ‘land and expand’ strategy. This has resulted in the average revenue per customer consistently increasing, resulting in many accounts that are $2-3 million in size, in addition to a few customers that are $5 million and $10 million customers. We want to take this strategy to the next level by moving some customers into the $20 million range and creating more $5 million and $10 million accounts.”
As part of this strategy, he said Happiest Minds will invest in seasoned client partners to bring focus and elevate conversations, creating customer-specific solutions, aligning incentives and responsibilities across several functions, and giving these sets of accounts prioritised focus and treatment.
Venkatraman Narayanan, the company’s Managing Director & CFO, emphasised additional focus areas, including sustaining “industry-leading margins” after 18 consecutive quarters of exceptional EBITDA performance, as well as continued efforts in Mergers & Acquisitions (M&A).
