Mphasis

Q4 FY26IT - Software

Mphasis Q4 FY26 earnings call: Revenue & Margins

Q4 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹2,430

Market cap₹46.4K Cr

P/E24.0

Updated23 Aug 2026

Read4 min read

The short version

Mphasis expects to deliver high single-digit to low double-digit revenue growth in FY27, supported by disciplined execution and strong demand for AI-led transformation. Mphasis expects to deliver high single-digit to low double-digit growth in FY27, driven by AI-led transformation demand.

From Mphasis's Q4 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

Mphasis expects to deliver high single-digit to low double-digit revenue growth in FY27, supported by disciplined execution and strong demand for AI-led transformation.
Continued momentum in Direct business growth, with Q4FY26 showing 2.5% sequential and 7.1% YoY growth in constant currency.
BFS vertical projected to sustain growth momentum, supported by large client stability and pipeline buildup.
Non-BFS sectors, including TMT and logistics/transportation, expected to gradually recover and contribute to diversified growth.
AI-led deals and Modernization/XaaP solutions to drive strong pipeline expansion and deal conversion.
Pipeline grew 38% YoY, with 69% now AI-led; net new TCV hit a record $2.1 billion in FY26, indicating robust future deal flow.

2 more points management made on revenue & sales performance

Profitability & Margins

Mphasis expects to deliver high single-digit to low double-digit growth in FY27, driven by AI-led transformation demand.
Operating margins are targeted to remain within the band of 14.75% to 15.75%, with the company working above this band currently (~16.5% ex-FX).
Investments will continue in platforms and capabilities, especially in AI and large deals, potentially impacting margins temporarily.
EBIT margins for the recent quarter reached multi-year highs, indicating strong profitability momentum.
EPS showed sequential and YoY growth, reflecting earnings strength.
Operating cash flow to net income conversion is targeted at approximately 80%, reflecting disciplined cash management.
Growth acceleration is expected through continued wallet share gains, especially in BFSI and AI-driven deals.

2 more points management made on profitability & margins

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

Capital Expenditure Plans

Mphasis is investing in scaling its AI capabilities and technology-led differentiation to deliver measurable client outcomes.
Strategic investments include building a modern technology stack called NeoIP, launched in 2024, which is continually enhanced to maintain time-to-market advantage.
Recent acquisition extending the NeoIP stack beyond systems modernization to broader business transformation.
Investments are being made in large deals capability with a newly built leadership team for scalability and repeatability.
Working capital investments ongoing due to contract acquisition costs and large deal payments, with a disciplined approach targeting 80% operating cash flow to net income conversion.

2 more points management made on capital expenditure plans

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Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

The transcript and information on page 20 of the Mphasis Limited report dated April 30, 2026, do not mention any current or future plans for fundraising through debt or equity. Key points regarding financial strategy include: - Focus remains on execution, technology-led differentiation, and scaling AI capabilities. - No discussion or indication of new debt or equity fundraising. - Emphasis on operational cash flow, working capital management, and disciplined investment.

2 more points management made on fundraising & capital structure

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

Order Book & Pipeline

Mphasis Limited reported strong pipeline momentum and deal conversion, building on FY26’s record Total Contract Value (TCV) performance.
Despite macro uncertainties, the company expects to sustain high single-digit to low double-digit revenue growth in FY27.
The pipeline shows a rapid buildup in BFS (Banking, Financial Services) sector and healthy double-digit growth in TMT (Technology, Media, Telecom) segment.
Large deals capability was boosted about 18 months ago with a dedicated team; full impact expected in FY27.
The company anticipates continuing investments in large deals and platforms, with operating cash flow to net income conversion targeted around 80%.

2 more points management made on order book & pipeline

Mphasis — 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. Revenue and profit are scaled separately — hover a quarter for exact figures.

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What Mphasis Ltd's management said in earlier quarters

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Frequently Asked Questions

What were Mphasis Q4 FY26 results?

What is Mphasis share price analysis?

Mphasis currently shows a neutral. The stock trades at a P/E of 24.0 with a market cap of ₹46,383 Cr. Investors should review the full earnings analysis for detailed insights.

Is Mphasis planning capital expenditure?

Mphasis is investing in scaling its AI capabilities and technology-led differentiation to deliver measurable client outcomes.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.