Mphasis Ltd Q1 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Published 19 Jul 2026 | IT - Software | Market Cap: ₹48.6K Cr

Mphasis expects to grow at approximately 2X the industry growth for FY26, based on strong Q1 performance and steady ramp-up of large deals. Mphasis expects FY26 to achieve approximately 2x industry growth, building on Q1 performance and steady ramp-up of large deals.

From Mphasis Ltd's Q1 FY26 earnings-call transcript · updated 23 Aug 2026.

Price

₹2,430

Market Cap

₹48.6K Cr

P/E Ratio

25.1

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Mphasis Ltd — Quarterly revenue & net profit

Revenue Net Profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹4.2K Cr, net profit ₹510 Cr.

Full financials →

📊 Revenue & Sales Performance

→Mphasis expects to grow at approximately 2X the industry growth for FY26, based on strong Q1 performance and steady ramp-up of large deals.
→Pipeline shows robust growth with a 16% increase quarter-on-quarter and 84% year-on-year.
→The company anticipates steady conversion of Total Contract Value (TCV) to revenue.
→BFS, Insurance, and TMT verticals continue delivering over 20% year-on-year growth in constant currency.
→Logistics & Transportation vertical, impacted by earlier investments, is expected to gradually recover through the remainder of the year.
→Deal wins are broad-based, coming from both new and existing clients across multiple verticals.
→The growth strategy emphasizes tight execution and client-centric tech-led transformation amid macroeconomic uncertainties.
→AI-driven growth initiatives and platform investments are expected to fuel future revenue.
→Utilization rates and headcount management are optimized for sustainable growth.

📈 Profitability & Margins

→Mphasis expects FY26 to achieve approximately 2x industry growth, building on Q1 performance and steady ramp-up of large deals.
→Target EBIT operating margin is forecasted within the band of 14.75% to 15.75%.
→EPS grew 8.5% YoY in Q1FY26 to Rs 23.2, with stable margins reported.
→Operating profit grew 0.7% QoQ and 11.2% YoY in Q1FY26 despite some macro challenges.
→The company is focused on investing in AI-driven growth initiatives to sustain growth and profitability.
→Margin guidance reflects a range-bound approach balancing growth investments and margin maintenance.
→Utilization and deal wins are strong, supporting revenue and profit growth outlook.
→Higher effective tax rates in Q1 due to minimum tax expenses expected to normalize in FY26.

See what Mphasis Ltd said on profitability & margins — free account, 30 seconds.

🏗️ Capital Expenditure Plans

→Strategic minority investment of $4 million for a 26% stake in 'Aokah,' a GCC advisory firm set up by the ex-founder of the Neo Group. This aims to help shape deals as clients consider GCC models and create new client engagements, particularly in GCC advisory and follow-up execution.
→The investment in 'Aokah' is capital in nature and not a P&L expense.
→Continued investments in AI-led platforms such as Mphasis NeoZeta™, NeoCrux™, and NeoSaBa™, combining Generative and Agentic AI to enhance human performance, modernize systems, and accelerate next-gen application development.
→Ongoing investment in platform-led constructs and Savings-led Transformation™ initiatives.
→Investments are planned in growth areas despite economic uncertainty, focusing on disciplined execution and client-centric solutions.
→Supply chain model investments include a more dynamic approach with internal rotation and just-in-time onboarding, reducing the need for a large bench.

💰 Fundraising & Capital Structure

→From the provided transcript (pages 3 to 19 of the document), there is no mention or indication of any current or planned fundraising activities through debt or equity by Mphasis Limited.
→The focus in the call is primarily on operational performance, deal wins, investments in growth initiatives (such as the minority investment in ‘Aokah’), and financial metrics.
→Discussions revolve around revenue conversion, deal pipeline, margin outlook, and strategic investments rather than raising capital.
→No explicit announcements or plans about raising funds via debt or equity are disclosed during this quarter's call.
→For any future fundraising plans, investors are advised to monitor official press releases or investor relations communications.

See what Mphasis Ltd said on fundraising & capital structure — free account, 30 seconds.

📋 Order Book & Pipeline

→Mphasis reported a strong deal pipeline, with a 16% QoQ and 84% YoY growth in qualified pipeline.
→The company achieved record-high total contract value (TCV) wins of $760 million in the quarter.
→Pipeline remains robust across BFS, Insurance, TMT, Logistics, and Healthcare verticals.
→Pipeline growth indicates a high propensity for originating, qualifying, and closing deals.
→Ongoing focus on converting pipeline to TCV and then TCV to revenue.
→Large deals won have varied ramp-up periods, with some already contributing in Q1.
→The company expects steady ramp-up of large deals in upcoming quarters.
→Overall outlook is positive with expectations to grow ~2X the industry on the back of strong pipeline and deal wins.

Key Metrics

What Mphasis's management said in earlier quarters

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Frequently Asked Questions

What were Mphasis Ltd Q1 FY26 results?

What is Mphasis Ltd share price analysis?

Mphasis Ltd currently shows a neutral. The stock trades at a P/E of 25.1 with a market cap of ₹48,578 Cr. Investors should review the full earnings analysis for detailed insights.

Is Mphasis Ltd planning capital expenditure?

Strategic minority investment of $4 million for a 26% stake in 'Aokah,' a GCC advisory firm set up by the ex-founder of the Neo Group.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.