Any current/future new fundraising through debt or equity?

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 qu

Any current/future capex/capital investment/strategic investment?

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 inves

Future growth expectations in sales/revenue/volumes?

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

Future growth expectations in earnings/operating earnings/profits/EPS?

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

Current/ Expected Orderbook/ Pending Orders?

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.

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Mphasis LtdQ2 FY25IT - Software

Mphasis Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,268P/E: 23.0Market Cap: ₹43.4K CrSector: IT - Software

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→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.

Margin guidance

Category 3

→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.

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Fundraise plans

→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.

Order book

Yes

→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.

Capex plans

Yes

→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.

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