Mphasis Reports 17.5% YoY Revenue Growth in Q1 FY27; Secures $461 Million in New Deal Wins Driven by AI Demand

Information technology services provider Mphasis Limited (BSE: 526299, NSE: MPHASIS) announced its consolidated audited financial results for the first quarter ended June 30, 2026 (Q1 FY27).

The company reported strong top-line growth, with reported revenue from operations reaching ₹42,426.68 million (₹4,242.67 crore). This represents a 17.5% year-on-year (YoY) increase compared to ₹37,324.89 million in Q1 FY26 and a 3.3% sequential growth over ₹43,840.54 million in Q4 FY26. In constant currency terms, revenue grew 2.1% quarter-on-quarter (QoQ) and 8.3% YoY.

Net profit for the quarter rose 15.4% YoY to ₹5,096.40 million (₹509.64 crore), compared to ₹4,417.03 million in Q1 FY26 and ₹4,895.06 million in Q4 FY26.

Financial and Margin Performance Summary

Mphasis maintained its profitability profile while securing strategic enterprise deals across its core business segments:

Revenue from Operations: Stood at ₹42,426.68 million, compared to ₹43,840.54 million in Q4 FY26 and ₹37,324.89 million in Q1 FY26. Full-year FY26 revenue stood at ₹158,796.47 million.

Other Income: Reached ₹1,079.17 million, up from ₹828.57 million in Q4 FY26 and ₹809.48 million in Q1 FY26.

Total Income: Combined income aggregated ₹43,505.85 million for Q1 FY27.

Profit Before Tax (PBT): Stood at ₹6,813.17 million, compared to ₹6,827.85 million in Q4 FY26 and ₹6,100.71 million in Q1 FY26. PBT reflects a net loss from equity-accounted investees of ₹17.24 million.

Tax Expenses: Totaled ₹1,716.77 million, comprising ₹1,158.70 million in current tax and ₹558.07 million in deferred tax.

Net Profit (PAT): Came in at ₹5,096.40 million, delivering an EPS of ₹26.73 per equity share (face value ₹10/- each), up from ₹23.22 per share in Q1 FY26 and ₹25.65 in Q4 FY26.

Margins: Gross margin for the quarter stood at 26.9% (declining 140 bps QoQ and 200 bps YoY), operating margin was 14.8% (down 60 bps QoQ and 50 bps YoY), and net margin stood at 11.2%.

Total Comprehensive Income: Totaled ₹5,874.20 million for the quarter, supported by a net gain in the fair value of cash flow hedge derivatives worth ₹1,470.29 million within Other Comprehensive Income (OCI).

Operational Highlights & TCV Wins

During Q1 FY27, Mphasis logged Total Contract Value (TCV) wins amounting to USD 461 million, with 63% of new wins being AI-led.

Key strategic deal closures during the quarter included:

Global Tech Firm: A major agreement with a Tier 1 global technology company to support online store, retail, commerce, data platforms, and quality engineering organizations.

US Telecom Leader: Selected by a Tier 1 US telecom carrier to optimize enterprise operations through AI-driven automation, process efficiency, and platform modernization.

Investment Banking Expansion: Chosen by a top-tier investment bank for strategic technology programs spanning cryptocurrency platforms, tokenization, and multi-currency capabilities.

US Banking Sector: Secured a new mandate with a top US bank to modernize fraud and claims processing, core banking operations, and retail functions.

Direct Revenue and Operational Breakdown

Total expenses incurred during Q1 FY27 amounted to ₹36,675.44 million, compared to ₹37,844.57 million in Q4 FY26 and ₹32,033.66 million in Q1 FY26.

Key operational costs included:

Employee Benefits Expense: Accounted for ₹23,076.14 million (ranging between 44% to 54% of CGU revenue across business units).

Other Expenses: Stood at ₹11,297.96 million, compared to ₹11,801.45 million in Q4 FY26 and ₹8,851.32 million in Q1 FY26.

Depreciation & Amortization: Totaled ₹1,470.55 million.

Finance Costs: Stood at ₹773.38 million, compared to ₹485.17 million in Q4 FY26 and ₹418.23 million in Q1 FY26.

Business Segment Revenue & Segment Results

Mphasis operates across five core industry verticals:

1. Banking and Financial Services (BFS)

Segment Revenue: ₹23,032.86 million in Q1 FY27, up 17.0% YoY from ₹19,679.28 million in Q1 FY26.

Segment Result: ₹7,852.18 million, compared to ₹6,308.59 million in Q1 FY26 and ₹7,601.47 million in Q4 FY26.

2. Technology Media and Telecom (TMT)

Segment Revenue: ₹6,893.72 million in Q1 FY27, up 2.0% YoY from ₹6,757.20 million in Q1 FY26.

Segment Result: ₹1,168.80 million, compared to ₹1,304.54 million in Q1 FY26 and ₹2,111.63 million in Q4 FY26.

3. Insurance

Segment Revenue: ₹6,791.01 million in Q1 FY27, up 33.0% YoY from ₹5,105.00 million in Q1 FY26.

Segment Result: ₹1,857.03 million, compared to ₹1,783.37 million in Q1 FY26 and ₹857.25 million in Q4 FY26.

4. Logistics and Transportation

Segment Revenue: ₹2,181.53 million in Q1 FY27, compared to ₹2,170.93 million in Q1 FY26.

Segment Result: ₹341.16 million, compared to ₹125.88 million in Q1 FY26 and ₹253.27 million in Q4 FY26.

5. Others & Unallocated Hedges

Others Segment Revenue: ₹4,168.96 million, with segment profit standing at ₹1,428.49 million.

Unallocated Hedge Impact: Accounted for -₹641.40 million across segment revenue and segment profit calculations.

Capital Footprint

As of June 30, 2026, the paid-up equity share capital of Mphasis Limited stood at ₹1,908.27 million (comprising fully paid equity shares of face value ₹10/- each). Reserves and other equity stood at ₹105,528.85 million (₹10,552.89 crore), compared to ₹100,038.17 million reported as of June 30, 2025.

"We are pleased with the momentum as we enter the financial year, and the early market acceptance of Mphasis TriaTM, which has elevated us to a platform-led AI partner for enterprise clients. Q1 FY27 was a strong start, with revenue growth of 2.1% sequentially in constant currency, with strong pipeline and TCV wins. We expect further acceleration in sequential growth in Q2 FY27, as we continue to gain wallet share, as well as capture additional AI led market share," said Nitin Rakesh, CEO & Managing Director, Mphasis.

Shares of MphasiS Limited was last trading in BSE at Rs. 2232.10 as compared to the previous close of Rs. 2274.15. The total number of shares traded during the day was 14891 in over 2333 trades.

The stock hit an intraday high of Rs. 2281.50 and intraday low of 2212.00. The net turnover during the day was Rs. 33346317.00.

Source : Equity Bulls

Keywords

Mphasis INE356A01018 Q1FY27 Q1FY2027 ResultUpdate