Mphasis posts Q1FY27 revenue growth of 9.9% y-o-y, eyes best sequential quarter in three years
AI Summary
Mphasis Limited reported a revenue increase of 9.9% year-on-year for Q1 FY27, driven by its AI platform Mphasis TRIA, with total contract value wins reaching $461 million. Despite a slight dip in operating margin to 14.8% and a 4% decline in earnings per share, the company maintains a positive outlook for Q2 FY27, expecting strong sequential growth. The stock is currently trading at ₹2,235.50, significantly below its 52-week high.
Mphasis Limited reported revenue of $471 million for the first quarter of FY27 (ended June 30, 2026), up 9.9 per cent year-on-year and 2.2 per cent sequentially in constant currency terms, as the Bengaluru-based IT services firm rode momentum from its newly launched AI platform Mphasis TRIA.
The company’s stock traded at ₹2,235.50 on the NSE as of midday on July 24, touching an intraday high of ₹2,340, though it remains about 26 per cent below its 52-week high of ₹3,037.20 recorded in September 2025. Total market capitalisation stood at approximately ₹42,691 crore.
Net new total contract value (TCV) wins for the quarter came in at $461 million, including three large deals, one of which exceeded $100 million. The trailing twelve-month TCV crossed $1.8 billion. Management noted that 63 per cent of TCV wins were AI-led, with the AI-led pipeline now accounting for 70 per cent of the overall pipeline — up from 12 per cent in mid-2024. The overall pipeline grew 8 per cent sequentially and 28 per cent year-on-year.
Operating margin came in at 14.8 per cent for Q1FY27, slightly below the prior quarter’s 14.4 per cent and at the lower end of the company’s stated guidance band of 14.75 per cent–15.75 per cent, after absorbing acquisition-related costs. Earnings per share declined 4 per cent sequentially to ₹25.6.
Among verticals, Technology, Media and Telecom grew 16.4 per cent sequentially and 13.6 per cent year-on-year, driven by new deal ramp-ups. Banking and Financial Services, the largest vertical at $248 million, grew a modest 0.8 per cent sequentially. Insurance slipped 3.1 per cent quarter-on-quarter after four consecutive quarters of strong growth.
Chief Executive Nitin Rakesh said the company expects Q2FY27 to deliver the best sequential growth in constant currency terms in three years. Full-year guidance of high single-digit to low double-digit growth was maintained, alongside an 80 per cent net income-to-operating cash flow conversion target.
Days Sales Outstanding rose to 95 days in Q1FY27, up 11 days year-on-year.
Original Article
Published on Hindu BusinessLine