Financial Performance Highlights

Q1 FY27 Operating Revenue: ₹629 crores, representing 14.3% year-on-year growth in rupee terms

Constant Currency Growth: 2.6% sequentially and 6.7% year-on-year

Total Income: ₹652 crores, growth of 4.9% sequentially and 12.5% year-over-year

EBITDA Margin: 21.7%

Operating Margin: 17.5% of revenues (₹109 crores), growth of 2.3%

Adjusted PAT: ₹80.5 crores (12.3% of total income), sequential growth of 12.9% and YoY growth of 14.3%

Adjusted EPS: ₹5.34, up 17% year-over-year

ROCE: Improved to 23.9% from 21.8% last quarter

ROE: Stood at 15.5% from 12.8% last quarter

Cash & Equivalents: ₹1,743 crores compared to ₹1,679 crores last quarter

Operational Metrics

Active Customers: 306 (same as last quarter)

Billion-dollar Customers: 92 (increased by 1), contributing approximately 60% of revenue

Repeat Business: 94.4%

DSO: 92 days (improved from 94 days previous quarter)

Total Employees: 6,532 Happiest Minds (net addition of 32 people)

Utilization: 81% (moderated marginally by 0.4%)

Voluntary Attrition: 15.4% (improved from 17% previous quarter)

Business Unit Performance

Generative AI Business Services (GBS): Showed strong growth with expanding AI portfolio

Infrastructure Management and Security Services (IMSS): Sequential drop driven by one-time license revenue in Q4 FY26

Product Digital Engineering Services (PDES): Growth supported by pull-through from GBS

AI Strategy & Capabilities

Enterprise AI Platform: Modular, secure, model-agnostic foundation with reusable AI agents, flows, and accelerators

AI Agents: Over 100 AI agents deployed

Repeatable Use Cases: Around 60 repeatable AI use cases

Engineering Transformation: More than 2,000 engineers using advanced agentic and AI development tools, generating over 2.5 million lines of code monthly with AI assistance

Automation Impact: 60% of infrastructure provisioning scope automated with AI tools (twofold improvement in speed), 80% reduction in application integration efforts through AI automation

Vertical Performance

Healthcare & Life Sciences: Grew 22% year-on-year and 4% sequentially

BFSI: Largest vertical at 27% of revenues

EdTech: Contributed 16% with modest growth

High-Tech: Recorded strong sequential recovery with 10% quarter-on-quarter growth

Geographic Revenue Mix

Americas: 57% of revenues (largest market)

India: Approximately 9% sequential growth

APAC: Approximately 10% sequential growth

Middle East: Growing presence with multi-year managed security services engagement

Notable Client Wins

  • Strategic data and AI partner for leading North American energy infrastructure company
  • AI-powered test automation engagement for leading Australian insurance provider
  • Digital commerce modernization program for leading Indian multinational CPG company
  • Salesforce-based product engineering engagement for global consulting company
  • Multi-year managed security services engagement with major Middle Eastern retailer

Proprietary Platforms

  • Enterprise AI platform
  • Arttha platform
  • Insurance in a Box platform
  • Multi-Omics platform
  • EduWeave platform (digital EdTech platform for universities)

Guidance & Outlook

FY27 Revenue Guidance: Maintained at 12.5% growth

FY28 Aspiration: 15% growth target remains unchanged

Investment Focus: Continued investment in AI capabilities, enterprise platforms, talent, and go-to-market initiatives

Wage Increments: Planned for Q2 FY27 as per traditional schedule

Risk Factors Mentioned

  • Selective discretionary spending environment
  • Geopolitical disturbances and war impact on inflation
  • Potential reality check in AI world regarding capex and spending
  • Currency impact on constant currency growth calculations

Q&A Session Highlights

Revenue Growth Drivers: Strong pipeline growth, mid-to-large size deals in pipeline, recent large deal closures, existing customer expansion programs, non-linear growth platforms (EduWeave, Insurance-in-a-Box)

Gen AI Business Model: Shift from use-case-based engagements to pod models and bundled larger deals with both AI and digital transformation components

Pricing Pressure: No systemic trend of rate decreases; some customers asking to demonstrate AI tool impact in SDLC

Competitive Advantage: Digital foundation, specialization, organizational agility, and dedicated Generative AI business unit creating depth

Hiring Strategy: Combination of replacement hiring and fresh hiring with accent on AI skills, internal training programs for AI-native engineers