MphasiS Limited (MPHASIS)
₹2,500.00 +1.91% last close, 16 Oct
Q2 FY27 results
📅 Next results: 05 Nov 2026 (board meeting)MphasiS Limited's board meets on 5 Nov 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, MphasiS's revenue was ₹4,384 Cr (+17.5% year on year, +3.3% on the previous quarter), and net profit ₹490 Cr (+10.7% year on year); the operating margin was 18.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹4,384 | +17.5% | +3.3% |
| Operating profit | ₹795 | +39.3% | -1.1% |
| Net profit | ₹490 | +10.7% | -4.0% |
| EPS (₹) | 25.65 | +10.5% | -4.0% |
| Operating margin | 18.1% | — | — |
MPHASIS delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 64.71% of the MPHASIS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 46.79%. The price rose 1.91% on that unusually high delivery, the pattern the delivery dashboard labels accumulation. It traded 2.5 times its average daily volume. In MPHASIS futures, open interest fell 3.68% while the futures price rose 2.07%: short covering (shorts closing out).
Delivery in the last 5 sessions: 46.0% · 35.3% · 46.5% · 55.9% · 64.7%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Mphasis Limited has received a rectification order under Section 154 of the Income-tax Act, 1961 for Assessment Year 2023-24, increasing its tax demand from ₹2,286.86 crore to ₹2,417.80 crore. The ₹130.94 crore increase is attributable to interest levied under Section 220. The total demand represents approximately 37.3% of the company's net worth (₹6,474 crore) and exceeds its annual TTM PAT of ₹1,911 crore. However, Mphasis noted errors in computation, plans to pursue legal remedies and file a rectification petition, and currently expects no material financial statement impact.
- Tax demand revised upward from ₹2,286.86 crore to ₹2,417.80 crore
- Increase of ₹130.94 crore due to interest levied under Section 220 of the Income-tax Act
- Order issued on October 9, 2026, and received by the company on October 13, 2026
- Company intends to file a rectification petition citing computation errors and seek legal remedies
Mphasis Limited has announced an agreement extension with Social Security Scotland valued at approximately £35.4 million (around ₹380-400 crore). Under the contract, Mphasis will manage and maintain the agency's core benefits case management platform, which supports over 2 million citizens across Scotland. While this reinforces Mphasis's public sector presence in Europe, the contract represents approximately 2.3% of the company's TTM revenue of ₹16,532 crore, making it an incremental business development rather than a transformative win.
- Signs an agreement extension for approximately £35.4 million
- Scope covers support and maintenance for Social Security Scotland's core benefits platform
- Platform caters to more than 2 million citizens across Scotland
- Contract value represents roughly 2.3% of Mphasis's TTM revenue (₹16,532 Cr)
Mphasis collaborated with Copa Airlines to host a Global Quantum Computing Challenge aimed at solving airline passenger re-accommodation disruptions. The competition involved 22 IIT teams in Phase 1, followed by 6 Indian teams and 3 Canadian university teams in Phase 2. Three finalist solutions were shortlisted for Copa Airlines leadership review. No commercial order win, revenue contract, or financial value was disclosed in the filing.
- Phase 1 included 22 Indian Institutes of Technology (IIT) teams evaluated jointly by Mphasis and IIT-Madras faculty
- Phase 2 shortlisted 6 IIT teams competing with 3 teams from University of Calgary and University of Lethbridge
- 3 solutions shortlisted for presentation to Copa Airlines leadership
- No commercial deal size or revenue value disclosed in the announcement
Mphasis Limited has announced the closure of its trading window for designated persons effective Wednesday, September 23, 2026. The closure precedes the financial results for the quarter and half-year ending September 30, 2026. The window will reopen 48 hours after the declaration of the financial results. The exact date of the board meeting to consider and approve the results will be communicated separately.
- Trading window closes on Wednesday, September 23, 2026
- Closure applies to designated persons ahead of results for the period ended September 30, 2026
- Trading window to reopen 48 hours post declaration of financial results
- Date of Board Meeting to be intimated separately
Mphasis Limited has informed the exchanges that it will participate in the J.P. Morgan India Conference on September 21, 2026, in Mumbai. The interaction will involve one-on-one and group meetings with institutional investors and analysts. The company explicitly confirmed that no Unpublished Price Sensitive Information (UPSI) will be shared during the interactions. This is a routine institutional investor interaction disclosure with no direct financial impact.
- Participation scheduled for September 21, 2026
- Event: J.P. Morgan India Conference in Mumbai
- Meeting format: One-on-one and group meetings
- Company affirmed zero Unpublished Price Sensitive Information (UPSI) will be shared
MphasiS Limited announced that its ESOP Compensation Committee approved the allotment of 64,800 equity shares on September 16, 2026. The allotment is made against the exercise of options under the Employee Stock Options Plan 2016 (ESOP 2016). For exercises under the Cashless Scheme, the Mphasis Employees Equity Reward Trust will deduct shares to cover the exercise price and applicable taxes, repaying company loans with the sale proceeds.
- Allotment of 64,800 equity shares approved on September 16, 2026
- Shares issued pursuant to the Employee Stock Options Plan 2016 (ESOP 2016)
- Trust to deduct and sell shares to fund exercise price and taxes under the cashless mechanism approved at the 33rd AGM on 25 July 2024
Mphasis Foundation, along with Plaksha University and TGR Haas F1 Team, hosted the second edition of the TrackShift Innovation Challenge on September 12–13, 2026. The hackathon drew over 3,600 student applications across India, with more than 180 finalists developing AI and mobility proofs of concept. Top winning teams received cash prizes totaling ₹1,75,000 alongside mentorship internships of up to two months at Mphasis. The event represents an academic and CSR talent pipeline initiative with no immediate financial impact on the company's ₹14,938 Cr TTM revenue base.
- Attracted over 3,600 student applicants across India, including IITs, NITs, and BITS Pilani
- Engaged more than 180 finalists in a 24-hour challenge on September 12–13, 2026
- Awarded cash prizes of ₹1,00,000, ₹50,000, and ₹25,000 to the top three collegiate teams
- Provided mentorship-based internships for up to 2 months at Mphasis on live AI projects
Mphasis has announced a CSR initiative partnering with SGBS Unnati Foundation and Bangalore Metro Rail Corporation Limited (BMRCL) for the maintenance of metro piers BP-382 to BP-437 in Bengaluru. The press release details ongoing environmental projects, including planting 100,000 trees at Doddasagare Botanical Garden and installing 1,200 percolation wells aiming to conserve 153 million litres of rainwater by 2026. This announcement pertains strictly to corporate social responsibility activities with no material financial impact on revenues or margins.
- Partnership covers upkeep of BMRCL metro corridor Pier Nos. BP-382 to BP-437
- Supports planting and maintenance of 100,000 trees at Doddasagare Botanical Garden
- Developing 1,200 percolation wells targeting conservation of 153 million litres of rainwater by 2026
- SGBS Unnati Foundation is listed on the Social Stock Exchanges of NSE and BSE since December 2023
MphasiS Limited announced that its ESOP Compensation Committee approved the allotment of 7,800 equity shares on September 7, 2026. The allotment was executed pursuant to the exercise of employee stock options under the Employee Stock Options Plan 2016. For exercises under the cashless scheme, the Mphasis Employees Equity Reward Trust will deduct sufficient shares to cover the funded exercise price and applicable taxes. The proceeds from sales of deducted shares will repay company loans and taxes.
- Allotment of 7,800 equity shares approved by the ESOP Compensation Committee
- Options exercised pursuant to Employee Stock Options Plan 2016 (ESOP 2016)
- Resolution passed on September 7, 2026
- Cashless scheme operates under Section 67 approved at the AGM on July 25, 2024
MphasiS Limited has approved the allotment of 7,800 equity shares following the exercise of options under its Employee Stock Options Plan 2016. The resolution was passed by the ESOP Compensation Committee on September 7, 2026. For employees using the cashless scheme approved in July 2024, the Mphasis Employees Equity Reward Trust will deduct the requisite shares to fund exercise costs and taxes. The equity dilution from this allotment is negligible.
- 7,800 equity shares allotted upon exercise of ESOPs
- Allotment approved by ESOP Compensation Committee on 7 September 2026
- Issued under Employee Stock Options Plan 2016 (ESOP 2016)
- Trust to deduct shares to fund exercise price and taxes under the Cashless Scheme approved on 25 July 2024
Mphasis Limited has announced its scheduled participation in the BofA India IT virtual call series on September 9, 2026. The meeting will be conducted in a group virtual format. The company explicitly stated that no Unpublished Price Sensitive Information (UPSI) will be shared during the interaction.
- Participation scheduled for September 9, 2026
- Event: BofA India IT virtual call series
- Meeting format: Group Virtual interaction
- Company confirmed that no UPSI will be shared during the conference
Mphasis Limited has informed stock exchanges that NSE Sustainability Ratings and Analytics Limited has assigned an overall ESG rating of '75' to the company. The rating was independently assigned by the SEBI-registered rating provider based solely on publicly available information without company engagement. This is an informational filing and has no direct impact on financial performance or operations.
- Assigned an overall ESG rating of '75' by NSE Sustainability Ratings and Analytics Limited
- Intimation submitted pursuant to Regulation 30 of SEBI LODR Regulations, 2015
- Company confirmed it did not engage the agency; rating is unsolicited and based on public data
Mphasis has signed a strategic partnership agreement with TechnoPro Holdings, Japan's largest technical talent services firm with approximately 30,000 engineers and researchers. The collaboration aims to bring Mphasis' AI-led platforms, including Mphasis Modernize, Optimize, NeoIP, and Tria, to Japanese enterprises, focusing initially on financial services, automotive, and manufacturing. TechnoPro will also deploy Mphasis Tria internally to enhance its software development and operational workflows. Specific contract values and financial terms were not disclosed.
- Partnership with TechnoPro Holdings, which employs approximately 30,000 engineers and researchers in Japan.
- TechnoPro to deploy Mphasis Tria proprietary Enterprise Agency platform across its workforce.
- Targets enterprise AI modernization across Japanese financial services, automotive, and manufacturing sectors.
- Financial value, revenue sharing, and duration of the agreement were not disclosed.
Mphasis Limited's ESOP Compensation Committee approved the grant of 5,07,460 stock units to eligible employees on 20 August 2026. The grant consists of 4,15,060 stock options under ESOP 2016 at an exercise price of ₹2,371 per option, vesting over 5 years. It also includes 92,400 RSUs under RSU Plan 2021 at an exercise price of ₹10 per unit, vesting equally over 4 years. Each option or RSU entitles the holder to one equity share of face value ₹10 upon exercise.
- Granted 4,15,060 stock options under ESOP 2016 at an exercise price of ₹2,371 per option
- Granted 92,400 RSUs under RSU Plan 2021 at an exercise price of ₹10 per RSU
- ESOPs have a 5-year vesting period and a 60-month exercise period post-vesting
- RSUs vest in equal proportion over 4 years with automatic or 48-month exercise terms
MphasiS Limited's ESOP Compensation Committee approved the allotment of 700 equity shares on 20 August 2026 against the exercise of Restricted Stock Units (RSUs) under its RSU Plan 2021. The Mphasis Employees Benefit Trust will deduct shares as necessary to cover exercise costs and applicable taxes. The equity addition is negligible relative to the overall capital base, representing routine employee compensation administration.
- Allotment of 700 equity shares approved on 20 August 2026
- Issued pursuant to exercise of RSUs under RSU Plan 2021
- Mphasis Employees Benefit Trust will deduct shares to settle funded exercise price and applicable taxes
Financial Performance
Revenue Growth by Segment
Mphasis reported a revenue decline of 3.8% YoY in FY2024 to INR 13,278.5 Cr, primarily due to a slowdown in the mortgage and banking segments which account for over 50% of annual revenues. However, H1 FY2025 saw a recovery with 6.6% YoY growth driven by the banking and insurance verticals. The company achieved a record TCV of $1.3 billion in H1 FY2026, surpassing the total TCV of FY2025.
Geographic Revenue Split
The company exhibits high geographical concentration with the US market contributing 81% of total revenues in FY2024 (down slightly from 82% in FY2023). Other regions including Europe and India contribute the remaining 19%. This concentration makes earnings highly vulnerable to US-specific macroeconomic shifts and regulatory changes.
Profitability Margins
Operating margins remained healthy at 18.2% in FY2024, supported by cost optimization and easing wage inflation. The company targets a long-term operating EBIT margin band of 14.75% to 15.75%. Net margins are susceptible to pricing pressures in the intensely competitive IT services industry and fluctuations in the mortgage segment.
EBITDA Margin
EBITDA margins have remained relatively stable despite revenue volatility. In FY2022, the company maintained robust debt protection with an interest coverage ratio of 28.5x and TD/OPBITDA of 0.6x. Margin stability is supported by a shift toward high-value digital and AI-led services which now comprise one-third of the order book.
Capital Expenditure
While specific annual CAPEX figures are not fully detailed, the company maintains a strong liquidity position with cash and liquid investments of INR 2,982.6 Cr as of September 30, 2024, to fund ongoing digital transformations and potential acquisitions like Silverline.
Credit Rating & Borrowing
ICRA reaffirmed ratings at [ICRA]AA+ (Stable) and [ICRA]A1+. The company maintains a negative net debt position with a gearing of 0.2x as of March 2022, indicating very low reliance on external borrowing and high financial flexibility.
Operational Drivers
Raw Materials
As an IT services firm, the primary 'raw material' is human capital (skilled workforce), which accounts for the largest portion of operating costs. Wage costs and talent acquisition expenses are the critical cost drivers.
Import Sources
Not applicable for IT services; however, talent is primarily sourced from India, the US, and Europe.
Key Suppliers
Not applicable in a traditional manufacturing sense; however, the company leverages the Blackstone Group's ecosystem for client acquisition and strategic partnerships with firms like Kore.ai.
Capacity Expansion
Capacity is measured by headcount and TCV wins. The company closed over $2 billion in TCV on a last 12-month basis as of Q2 FY2026, indicating a significant expansion in service delivery capacity.
Raw Material Costs
Employee benefit expenses and wage inflation are the primary cost factors. Attrition rates have moderated in FY2024, aligning with industry averages, which helps in stabilizing the cost-to-revenue ratio.
Manufacturing Efficiency
Efficiency is tracked through TCV-to-revenue conversion pace and utilization of the NeoIP suite of agents to automate service delivery.
Logistics & Distribution
Distribution is digital; costs are related to global delivery center maintenance and cloud infrastructure.
Strategic Growth
Expected Growth Rate
12-15%
Growth Strategy
Growth is driven by an AI-first strategy, leveraging the NeoIP suite (NeoCrux, NeoZeta) and gaining access to the investment portfolios of Blackstone, ADIA, and UC Investments. The company aims for growth at >2x the industry average by converting its $1.3 billion H1 FY2026 TCV into revenue.
Products & Services
IT services, BPO services, Cloud transformation, AI-led solutions (NeoCrux, NeoZeta), and mortgage processing services.
Brand Portfolio
Mphasis, Silverline (Sonnick Partners LLC), NeoCrux, NeoZeta, NeoIP.
New Products/Services
Launched AI products NeoCrux and NeoZeta; AI-driven deals now represent approximately 33% of the total order book.
Market Expansion
Expanding footprint in the US and Europe through the acquisition of Silverline (Salesforce partner) and eBECS to deepen presence in cloud and digital segments.
Market Share & Ranking
Positioned as a leading mid-tier IT services player; serves 6 of the top global banks and 11 of the top 15 US mortgage lenders.
Strategic Alliances
Strategic alliance with Kore.ai for conversational AI and deep integration with Blackstone Group's portfolio companies for captive-to-direct business conversion.
External Factors
Industry Trends
The industry is shifting toward AI and cloud-based discretionary spending. Mphasis is positioning itself to capture this by ensuring 1/3 of its TCV is AI-led, moving away from traditional legacy maintenance.
Competitive Landscape
Faces intense competition from Tier-1 Indian IT firms (TCS, Infosys) and global consultants (Accenture), which limits its ability to hike prices significantly.
Competitive Moat
Moat is built on deep domain expertise in Banking and Capital Markets (BCM) and a unique 'Blackstone advantage' providing a steady pipeline of captive deals. This is sustainable due to long-term (10+ year) relationships with top-tier global banks.
Macro Economic Sensitivity
Highly sensitive to US GDP growth and interest rate cycles; a 1% change in US interest rates significantly impacts the mortgage servicing business volume.
Consumer Behavior
Clients are shifting from large multi-year legacy contracts to shorter, transformation-heavy AI and digital deals.
Geopolitical Risks
Exposure to US and European regulatory changes regarding data residency and H1-B visa policies which could increase operational costs.
Regulatory & Governance
Industry Regulations
Subject to international data protection laws (GDPR) and US financial service regulations. Compliance is critical as a breach could lead to significant penalties and loss of marquee banking clients.
Environmental Compliance
Direct environmental risk is low due to the service nature of the business; ESG focus is primarily on data security and social governance.
Taxation Policy Impact
The company faces ongoing scrutiny regarding income tax-related matters, which are categorized as contingent liabilities.
Legal Contingencies
Sizeable contingent liabilities exist, primarily related to income tax matters. Materialization of these could impact the INR 2,982.6 Cr liquidity position.
Risk Analysis
Key Uncertainties
US macroeconomic uncertainty and potential reduction in discretionary IT spend pose a 5-10% risk to revenue growth targets.
Geographic Concentration Risk
81% of revenue is derived from the US market, creating a high-risk profile for region-specific economic downturns.
Third Party Dependencies
High dependency on the Blackstone Group for deal flow; any change in Blackstone's stake or investment strategy could impact the 'Direct' business growth.
Technology Obsolescence Risk
Risk of rapid AI evolution making current service offerings obsolete; mitigated by the launch of NeoCrux and NeoZeta AI platforms.
Credit & Counterparty Risk
Low risk due to a marquee client base including 6 of the top global banks and 3 top global insurance companies.
