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Mphasis Ltd

| Standalone Audited Results for the Quarter and Year Ended March 31, 2026

Report Source

⬤29th Apr 26

Summary : Mphasis reported strong FY26 growth driven by AI-led solutions and strategic acquisitions, with a recommended dividend of Rs 62.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated FY26 Employee benefits expense: 89,187.10 million.
  2. Consolidated FY26 Finance costs: 2,040.58 million.
  3. Consolidated FY26 Depreciation and amortization expense: 5,552.73 million.
  4. Consolidated FY26 Other expenses: 39,775.50 million.
  5. Consolidated FY26 Exceptional item (labour laws impact): 354.77 million.
  6. Standalone FY26 Employee benefits expense: 31,117.25 million.
  7. Standalone FY26 Finance costs: 601.59 million.
  8. Standalone FY26 Depreciation and amortization expense: 1,815.56 million.
  9. Standalone FY26 Other expenses: 43,887.23 million.
  10. Standalone FY26 Exceptional item (labour laws impact): 344.02 million.
  11. Consolidated FY26 Revenue from operations: 158,796.47 million.
  12. Consolidated FY26 Banking and Financial Services revenue: 83,786.05 million.
  13. Consolidated FY26 Logistics and Transportation revenue: 8,718.76 million.
  14. Consolidated FY26 Technology Media and Telecom revenue: 28,696.39 million.
  15. Consolidated FY26 Insurance revenue: 23,443.81 million.
  16. Consolidated FY26 Others revenue: 15,456.24 million.
  17. Standalone FY26 Revenue from operations: 94,671.23 million.
  18. Consolidated Net cash from operating activities FY26: 12,532.81 million (vs 19,052.02 million in FY25).
  19. Consolidated Net cash used in investing activities FY26: (2,106.63) million (vs 440.58 million generated in FY25).
  20. Consolidated Net cash used in financing activities FY26: (9,432.49) million (vs (17,557.10) million in FY25).
  21. Consolidated Cash and cash equivalents at end of FY26: 11,229.22 million (vs 9,863.45 million in FY25).
  22. Standalone Net cash from operating activities FY26: 17,657.30 million (vs 8,394.52 million in FY25).
  23. Standalone Net cash from investing activities FY26: 4,781.12 million (vs (3,449.07) million used in FY25).
  24. Standalone Net cash used in financing activities FY26: (12,430.50) million (vs (11,772.66) million in FY25).
  25. Standalone Cash and cash equivalents at end of FY26: 7,402.25 million (vs 6,530.19 million in FY25).
  26. Consolidated Total Assets as of March 31, 2026: 177,819.24 million (vs 149,066.29 million in FY25).
  27. Consolidated Total Equity as of March 31, 2026: 107,437.12 million (vs 96,283.96 million in FY25).
  28. Consolidated Goodwill as of March 31, 2026: 47,676.84 million (vs 42,907.06 million in FY25).
  29. Standalone Total Assets as of March 31, 2026: 89,679.38 million (vs 82,466.28 million in FY25).
  30. Standalone Total Equity as of March 31, 2026: 64,743.02 million (vs 62,989.86 million in FY25).
  31. Audited standalone and consolidated financial results were approved.
  32. Auditors issued unmodified opinions on both standalone and consolidated results.
  33. Consolidated results include the Holding Company and its subsidiaries/associate.
  34. Standalone results pertain to Mphasis Limited only.

Corporate Overview

  1. Global presence through numerous subsidiaries (e.g., US, Europe, Asia).
  2. Significant revenue dependency on clients in the United States of America.
  3. Fluctuations in earnings, foreign exchange rates, revenue, and profits.
  4. Intense competition in IT services.
  5. Wage increases in India and ability to attract/retain skilled professionals.
  6. Time and cost overruns on fixed-price/fixed-time frame contracts.
  7. Restrictions on immigration and industry segment concentration.
  8. Managing international operations and high dependency on US clients.
  9. Reduced demand for technology in key focus areas.
  10. Disruptions in telecommunication networks or system failures.
  11. Integrating potential acquisitions successfully.
  12. Liability for damages on service contracts.
  13. Withdrawal of fiscal governmental incentives.
  14. Political instability, global pandemics, legal restrictions on capital/acquisitions.
  15. Unauthorized use of intellectual property and general economic conditions.
  16. Revenues are highly dependent on clients in the United States of America.
  17. AI-led, platform-driven technology solutions provider.
  18. Human-in-the-loop intelligence for global enterprises.
  19. Mphasis.ai unit and AI-powered 'Tribes' focus on client outcomes.
  20. NeoIP™™ platform orchestrates AI solutions across enterprise IT value chain.
  21. Ontosphere provides dynamic, ever-evolving knowledge base for innovation.
  22. CEO Nitin Rakesh expressed satisfaction with achieving FY26 growth and margin guidance.
  23. Optimistic about strong momentum entering FY27, driven by healthy pipeline and TCV.
  24. Highlighted traction of AI-led propositions and continued investment in AI efforts and NeoIP™™ suite.
  25. Emphasized strategic acquisitions like TAP for advanced AI capabilities and reasoning.
  26. Global enterprises seeking modernization and AI integration.
  27. Telecommunications and technology companies.
  28. Global banks for talent transformation and lending operations.
  29. Mid-size banks for payments operations transformation.
  30. Banking and Financial Services
  31. Logistics and Transportation
  32. Technology Media and Telecom
  33. Insurance
  34. Others
  35. Acquisition of EDZ systems (cyber security) for USD 17.00 million.
  36. Acquisition of tsQs Inc (software testing) for USD 27.00 million.
  37. Acquisition of 26% equity stake in Aokah Inc. for USD 4 million.
  38. Acquisition of Locate Software Inc (digital transformation) for USD 8.50 million.
  39. Acquisition of remaining 49% voting rights in Mrald Limited for GBP 49.
  40. Subsequent acquisition of OKIN Process, Inc. (BPO services) for up to USD 5.5 million.
  41. Subsequent acquisition of Theory and Practice Business Intelligence Inc. (AI platform) for up to CAD 30 million.

Risk Factors

  1. Revenue highly dependent on US clients.
  2. Intense competition in IT services.
  3. Impact of new labor laws.
  4. Challenges integrating acquired businesses.

Key Drivers

  1. Strong revenue growth and TCV wins.
  2. AI-led propositions gaining market traction.
  3. Strategic acquisitions expanding capabilities.
  4. Recommended final dividend of Rs 62.

Auditor’s Report

  1. Unmodified opinion on both consolidated and standalone financial results for FY26.

Board Commentary

  1. Re-appointment of Mr. Nitin Rakesh as Chief Executive Officer and Managing Director for 5 years from October 1, 2026.
  2. Re-appointment of Ms. Maureen Anne Erasmus as an Independent Director for a second and final term of 5 years from December 20, 2026.
  3. Recommended a final dividend of Rs 62/- per equity share for FY ended March 31, 2026.
  4. Subject to approval of shareholders at the ensuing Annual General Meeting (AGM).
  5. If approved, dividend will be paid within 30 days of the AGM.
  6. Fluctuations in earnings, foreign exchange rates, revenue, and profits.
  7. Ability to generate and manage growth.
  8. Intense competition in IT services.
  9. Wage increases in India and ability to attract/retain skilled professionals.
  10. Time and cost overruns on fixed-price/fixed-time frame contracts.
  11. Restrictions on immigration and industry segment concentration.
  12. Ability to manage international operations.
  13. Revenues being highly dependent on clients in the United States of America.
  14. Reduced demand for technology in key focus areas.
  15. Disruptions in telecommunication networks or system failures.
  16. Ability to successfully complete and integrate potential acquisitions.
  17. Liability for damages on service contracts.
  18. Withdrawal of fiscal governmental incentives.
  19. Political instability, adverse impact of global pandemics.
  20. Legal restrictions on raising capital or acquiring companies.
  21. Unauthorized use of intellectual property and general economic conditions.
  22. Impact of New Labour Codes (Code on Wages, Industrial Relations Code, Code on Social Security, Occupational Safety, Health and Working Conditions Code) on employee benefits.
  23. One-time impact of INR 355 million (consolidated) / INR 344.02 million (standalone) presented as an exceptional item for FY26 due to New Labour Codes.
  24. Acquisition of EDZ systems (cyber security business) for USD 17.00 million.
  25. Acquisition of tsQs Inc (software testing business) for USD 27.00 million.
  26. Acquisition of 26% equity stake in Aokah Inc. for USD 4 million.
  27. Acquisition of Locate Software Inc (digital transformation) for USD 8.50 million.
  28. Acquisition of remaining 49% voting rights in Mrald Limited for GBP 49.
  29. Subsequent acquisition of OKIN Process, Inc. (BPO services) for up to USD 5.5 million.
  30. Subsequent acquisition of Theory and Practice Business Intelligence Inc. (AI platform) for up to CAD 30 million.

Corporate Governance

  1. Ms. Maureen Anne Erasmus re-appointed as an Independent Director for 5 years.
  2. Nomination and Remuneration Committee (NRC) recommended board appointments.

Management Discussion & Analysis

Future Strategy

  1. Stepping into FY27 with strong momentum.
  2. Continuing to double down on AI efforts.
  3. Strengthening the NeoIP™™ suite.
  4. Leveraging acquisitions like TAP to move beyond task automation to AI-driven systems.
  5. Focus on customer-centricity through Front2Back™ transformation framework.
  6. Continuous investments in platforms for efficiency and relevance.

Industry Overview

  1. Focus on AI-led and platform-driven technology solutions.
  2. Emphasis on digital transformation and leveraging AI at scale.
  3. Growth in cyber security and software testing services.
  4. Expansion in digital transformation management services.

Operational Focus Areas

  1. Customer-centricity and hyper-personalized digital experiences.
  2. Front2Back™ transformation framework leveraging cloud and cognitive technologies.
  3. Service transformation to secure, adaptive, cloud-first operating models.
  4. Continuous investments in Neo series platforms for efficiency.
  5. Perpetual intelligent engineering for end-to-end enterprise transformation.

Performance Drivers

  1. Strong revenue growth (11.6% YoY reported, 6.7% YoY CC for FY26).
  2. Significant increase in New Total Contract Value (TCV) wins (68% YoY to USD 2.1 billion, 60% AI-led).
  3. Traction of AI-led propositions and strengthening of NeoIP™™ suite.
  4. Strategic acquisitions expanding capabilities and market reach.
  5. Consistent operating margin (15.3% for FY26).

Critical Risks

  1. Fluctuations in earnings, foreign exchange rates, revenue, and profits.
  2. Ability to generate and manage growth.
  3. Intense competition in IT services.
  4. Wage increases in India and ability to attract/retain skilled professionals.
  5. Time and cost overruns on fixed-price/fixed-time frame contracts.
  6. Restrictions on immigration and industry segment concentration.
  7. Ability to manage international operations.
  8. Revenues being highly dependent on clients in the United States of America.
  9. Reduced demand for technology in key focus areas.
  10. Disruptions in telecommunication networks or system failures.
  11. Ability to successfully complete and integrate potential acquisitions.
  12. Liability for damages on service contracts.
  13. Withdrawal of fiscal governmental incentives.
  14. Political instability, adverse impact of global pandemics.
  15. Legal restrictions on raising capital or acquiring companies.
  16. Unauthorized use of intellectual property and general economic conditions.
Mphasis Ltd (MPHASIS) Quarterly Report Analysis & Insights | Dhanarthi