Earnings Review
Mphasis Q2 sales beat view on growth in insurance vertical
This story was originally published at 07:48 IST on 31 October 2025
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--Mphasis Jul-Sept consol net profit INR 4.69 bl
--Analysts saw Mphasis Jul-Sept consol net profit at INR 4.63 bln
--Mphasis Jul-Sept consol revenue INR 39.02 bln
--Analysts saw Mphasis Jul-Sept consol revenue at INR 38.77 bln
--Mphasis Jul-Sept consol net profit INR 4.69 bln vs INR 4.42 bln qtr ago
--Mphasis Jul-Sept consol revenue INR 39.02 bln vs INR 37.32 bln qtr ago
--Mphasis Apr-Sept consol net profit INR 9.11 bln vs INR 8.28 bln year ago
--Mphasis Apr-Sept consol revenue INR 76.34 bln vs INR 69.59 bln year ago
--Mphasis Jul-Sept new total contract wins $528 mln vs $760 mln qtr ago
--Mphasis won six large deal in Jul-Sept
--Mphasis Jul-Sept operating margin 15.3%, unch from qtr ago
--Mphasis Q2 gross revenue at $445 mln, up 2% on qtr in constant currency
--Mphasis: See steady ramp-up of large deals in upcoming quarters
--Mphasis Jul-Sept BFS revenue $228 mln, dn 0.7% on qtr in constant currency
--Mphasis Q2 insurance revenue $62 mln, up 4.4% on qtr in constant currency
--Mphasis Q2 tech, media, telecom sale $86 mln, up 9.1% QoQ constant currency
--Mphasis Q2 logistics, transport sale $25 mln, dn 2.7% QoQ constant currency
--Mphasis: Target EBIT margin within band of 14.75-15.75%
By Anshul Choudhary
MUMBAI – Mphasis Ltd. reported a slightly better-than-expected revenue for the September quarter, led by a ramp-up in large deals won in the insurance segment and strong conversion in the technology, media, and telecommunication vertical. The company managed to beat expectations despite its largest business of banking and financial services reporting a sequential decline in revenue.
Mphasis reported a consolidated gross revenue of $445 million for the September quarter. This translated into sequential growth of 2% in constant currency terms, better than analysts' expectations of 1-1.8% rise.
In rupee terms, the consolidated revenue rose 4.5% on quarter to just over INR 39 billion, slightly better than analysts' expectations of INR 38.77 billion. Its consolidated net profit rose over 6% on quarter to INR 4.69 billion, largely in line with expectations. Compared to a year ago, revenue was up 10% and the net profit rose nearly 11%.
A slightly lower tax outgo during the quarter helped the company meet expectations on the net profit front. The company's tax expense was down 7.5% on quarter at INR 1.56 billion, largely due to higher deferred tax write-back.
The company's operating margin for Jul-Sept was unchanged on quarter at 15.3%, better than the expectations of most analysts. Among the estimates available with Informist, 10 brokerages had expected the company's operating margin to fall, one had expected it to be unchanged, and one had anticipated a rise. The company continues to maintain the margin target band of 14.75-15.75%.
SEGMENTAL PERFORMANCE
The company's largest segment of banking and financial services reported revenue of $228 million, down 1% on quarter in constant currency terms. However, growth in other verticals more than offset the decline in revenue from the banking vertical.
The company's technology, media, and telecom vertical reported the highest growth and its revenue was up over 9% on quarter in constant currency terms to $86 million. Revenue from the insurance segment rose 4.4% on quarter to $62 million during the September quarter.
"Insurance growth driven by ramp-up in recent large deal wins," the company said in a press release. "Continued wins and conversion driving revenue growth in TMT."
Revenue from its smallest segment of logistics and transportation was unchanged on quarter at $25 million. The company expects this segment to report sequential growth from the December quarter.
In terms of regions, revenue from Americas rose 2.1% on quarter to $372 million. Revenue from Europe, West Asia, and Africa rose 7.5% on quarter to $41 million. At the same times, revenue from rest of the world fell 3.5% on quarter to $32 million.
ORDER WINS
Mphasis reported total contract value wins worth $528 million in the September quarter. This included a new deal worth over $100 million from a new client in the banking and financial services vertical and two deals of over $50 million each. Overall, the company won six large deals, with a contract value of more than $20 million each, during the September quarter.
Its order wins during the September were lower than the $760 million worth of deals won in the June quarter, but better than the $207 million worth of deals won in the September quarter last year.
For the six months ended September, Mphasis reported a consolidated net profit of INR 9.11 billion, up 10% on year. Its revenue for the six months also rose nearly 10% to INR 76.34 billion. On Thursday, shares of the company closed 0.7% higher at INR 2,893.70 on the National Stock Exchange. End
US$1 = INR 88.69
Edited by Avishek Dutta
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