TLDR: Happiest Minds Technologies is targeting a significant increase in revenue from its generative AI (GenAI) business, aiming for a double-digit share of its total revenue within the next three years. This ambitious goal translates to a potential of $50 million in GenAI-led sales by 2028, up from its current 2.4% contribution. The company is capitalizing on accelerated AI spending by clients seeking cost reduction and productivity enhancement, with its GenAI projects commanding a premium of 20-25% over standard rates.
Happiest Minds Technologies, a prominent Indian IT services firm, has set an ambitious target to achieve a double-digit revenue share from its generative artificial intelligence (GenAI) business within the next three years. This strategic move is projected to generate approximately $50 million in GenAI-led sales by 2028. The company’s current contribution from GenAI stands at 2.4% of its total revenues, as reported for the June quarter of 2025.
The Bengaluru-based company is positioning itself to leverage the growing trend of enterprises accelerating their AI investments to optimize costs and boost productivity. According to a top executive, GenAI projects at Happiest Minds are currently commanding a premium of 20-25% over standard service rates, indicating strong market demand and value perception for these advanced solutions.
Happiest Minds has identified 22 transformative use cases for GenAI, which have progressed into replicable projects. Five of these projects are already live, with three individual projects valued at over $1 million each. The company reported approximately $4 million in revenue from GenAI-led services in the first half of the current fiscal year and anticipates this figure to double by the end of the year. Use cases span diverse sectors, from student onboarding and grade management in ed-tech to automating inventory and invoicing in consumer goods.
This announcement marks Happiest Minds as the first Indian IT firm to provide a specific revenue forecast tied to generative AI technology. It is also the second company in the $283 billion Indian IT sector to publicly report AI-related revenue, following HCLTech, which recently announced its advanced AI quarterly revenue crossed $100 million, accounting for around 2.7% of its total sales in the September quarter.
Industry analysts view Happiest Minds’ GenAI growth target as challenging but feasible, primarily due to the relatively low base from which it is starting and the faster growth trajectory of its GenAI unit compared to its other business segments. However, the broader landscape of GenAI adoption presents complexities; a Massachusetts Institute of Technology study in August indicated that 95% of organizations globally had not seen returns on their $30-$40 billion GenAI investments, citing integration challenges and user skill gaps.
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For the first quarter of fiscal year 2026 (June quarter 2025), Happiest Minds reported a 12% year-on-year increase in net profit to Rs 57 crore and an 18.5% growth in revenues from operations, reaching Rs 550 crore. The company’s EBITDA stood at Rs 124 crore, with a margin of 21.4%. Managing Director Venkatraman Narayanan stated, ‘Our generative AI business is beginning to break even, the new sales engine into which we were making investments along with generative AI has started its payback.’ Co-Chairman & CEO Joseph Anantharaju noted that companies with strong digital and AI talent are more impacted by rising attrition rates, which increased to 18.2% in Q1 from 16.6% in the previous quarter, reflecting the high demand for these specialized skills. As of June 30, 2025, the company’s total headcount was 6,523 employees, with a utilization rate of 78.9%.
