AI Stock Soars 18% After Revising FY28 Growth Expectations

SYNOPSIS: This IT company raised its FY27 growth outlook to 12.5 percent following progress in its AI-First strategy and strategic initiatives, citing improving client traction and expanding opportunities in AI-driven technology services.

During Tuesday’s trading session, shares of an AI First, customer-centric digital engineering and mindful IT company surged nearly 18 percent on BSE, after the company announced revising FY28 growth expectation to 15 percent and reaffirming the company’s strong growth trajectory.

With a market cap of Rs. 5,840.5 crores, shares of Happiest Minds Technologies Limited is currently trading in the green at Rs. 383.55 on BSE, up by around 13 percent, compared to its previous closing price of Rs. 340.15. The stock has delivered negative returns of around 45 percent in one year, and has fallen by over 2 percent in the last one month.

What’s the News:

According to the latest disclosures filed with the stock exchanges, Happiest Minds Technologies Limited has reaffirmed its strong growth outlook, supported by its AI First strategic initiatives and robust demand across sectors.

Following an internal review, the company has revised its FY27 growth expectation to 12.5 percent, compared to the earlier estimate of 10 percent. The management noted that this revision reflects growing confidence that its AI-First strategy and other strategic initiatives are contributing positively to business momentum. The company also stated that the current trajectory could support its aspiration of achieving around 15 percent growth in FY28.

Strategic Initiatives and AI-First Push

Earlier, on 26th March 2025, Happiest Minds had announced 10 strategic initiatives aimed at strengthening its long-term growth roadmap. These initiatives were designed to support a revenue growth expectation of around 10 percent in constant currency over a four-year period, signalling the company’s intent to pursue a focused transformation across different parts of its business.

One of the key initiatives introduced at that time was the Generative AI Business Services (GBS) segment. Since its launch, this segment has gradually expanded its capabilities and has started gaining acceptance among clients, contributing to the company’s evolving strategy around AI-led services.

On 10th February 2026, the company launched AI First, which it described as its 11th Strategic Initiative, with an aim to place AI at the centre of the company’s entire operating model, influencing areas such as service delivery, product development, and client engagement.

At the time of launching the AI First initiative, the company noted that it was seeing increasing interest from clients in its AI-driven offerings. In response to this momentum, the company decided to reassess its growth outlook by reviewing client feedback, pipeline opportunities, market conditions, and the scope of its AI-related services, which ultimately led to the updated growth guidance.

Financials & More:

Happiest Minds reported a marginal growth in its revenue from operations, showing a year-on-year increase of around 11 percent from Rs. 531 crores in Q3 FY25 to Rs. 588 crores in Q3 FY26. However, its net profit declined by around 20 percent YoY, from Rs. 50 crores to Rs. 40 crores over the same period.

Happiest Minds Technologies Limited is engaged in next generation IT solutions & services, enabling organisations to capture the business benefits of emerging technologies of cloud computing, social media, mobility solutions, business intelligence, analytics, unified communications and internet of things. 

It offers a high degree of skills, IPs and domain expertise across a set of focused areas that include digital transformation & enterprise solutions, product engineering, infrastructure management, security, testing and consulting. 

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