Happiest Minds Technologies Sees Profit Decline Amid New Labour Code Impact
Happiest Minds Technologies reported a 19.56% decrease in net profit in Q3 FY26, due to the new Labour Code implementation. Despite this, the firm's revenue rose by 10.69%. The company plans to enhance its AI investment for long-term growth, aiming to build a 1,000+ AI team by FY27.
- Country:
- India
Happiest Minds Technologies witnessed a significant decline in its net profit, falling 19.56% to Rs 40.3 crore in the October-December quarter. This downturn was largely attributed to the one-time impact stemming from the implementation of the new Labour Codes.
Despite the slump in profits, the IT firm's revenue from operations experienced an upward trend, increasing 10.69% to Rs 587.56 crore in Q3 FY26 from Rs 530.81 crore in Q3 FY25. Sequentially, revenue grew by 2.43%, while profits plummeted by 25.39%.
Commenting on the situation, MD Venkatraman Narayanan affirmed the company's commitment to long-term value creation through its AI First strategy. He further revealed plans to double AI/GenAI investments and to establish a dedicated team of over 1,000 by the end of FY27.
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