Results: Happiest Minds Technologies Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

The quarterly results for Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of ₹5.7b were in line with what the analysts predicted, Happiest Minds Technologies surprised by delivering a statutory profit of ₹3.59 per share, a notable 11% above expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Happiest Minds Technologies after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the latest results, Happiest Minds Technologies' eight analysts are now forecasting revenues of ₹23.1b in 2026. This would be a reasonable 5.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 20% to ₹15.57. Before this earnings report, the analysts had been forecasting revenues of ₹23.1b and earnings per share (EPS) of ₹17.43 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

See our latest analysis for Happiest Minds Technologies

The consensus price target held steady at ₹629, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Happiest Minds Technologies, with the most bullish analyst valuing it at ₹682 and the most bearish at ₹430 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Happiest Minds Technologies shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Happiest Minds Technologies' revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2026 being well below the historical 22% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% annually. 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 important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Happiest Minds Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Happiest Minds Technologies going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Happiest Minds Technologies , and understanding them should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.