Happiest Minds Technologies Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. Although revenues beat expectations, hitting ₹22b, statutory earnings missed analyst forecasts by 13%, coming in at just ₹12.26 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 2 warning signs about Happiest Minds Technologies. View them for free.

Taking into account the latest results, the current consensus from Happiest Minds Technologies' seven analysts is for revenues of ₹23.7b in 2026. This would reflect a meaningful 9.4% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 64% to ₹20.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹24.3b and earnings per share (EPS) of ₹20.14 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

See our latest analysis for Happiest Minds Technologies

It will come as no surprise then, that the consensus price target fell 6.0% to ₹665following these changes. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Happiest Minds Technologies, with the most bullish analyst valuing it at ₹765 and the most bearish at ₹400 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Happiest Minds Technologies' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.4% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% per year. Even after the forecast slowdown in growth, it seems obvious that Happiest Minds Technologies is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Happiest Minds Technologies' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Happiest Minds Technologies analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Happiest Minds Technologies that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.