• Revenue growth outlook: Happiest Minds is guiding for 12.5% revenue growth in FY27 with an aspiration of 15%, driven by GenAI POC conversions, large pipeline deals, partner traction, and revenue from solutions like Artha, Insurance in a Box, and EduVee.
• Non-T&M revenue mix: Non-time-and-material (outcome-based) business currently accounts for around 25% of revenue, which the company aims to scale to 30–35% or up to 40% over the next two to three years.
• Margin expansion potential: The transition toward outcome-based models is expected to deliver a 2–3% uplift in margins, contingent on effectively managing and pricing AI tool costs and token usage.
• AI cost optimization: The company is implementing methodologies for token metering and usage optimization to help clients balance the total cost of ownership of agentic AI approaches against potential rising tool costs.