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Informist, Thursday, Jan. 22, 2026

 

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--Mphasis Oct-Dec consol net profit INR 4.42 bln 
--Analysts saw Mphasis Oct-Dec consol net profit at INR 4.80 bln 
--Mphasis Oct-Dec consol revenue INR 40.03 bln 
--Analysts saw Mphasis Oct-Dec consol revenue at INR 40.05 bln 
--Mphasis Oct-Dec consol net profit INR 4.42 bln vs INR 4.69 bln qtr ago 
--Mphasis Oct-Dec consol revenue INR 40.03 bln vs INR 39.02 bln qtr ago 
--Mphasis Apr-Dec consol net profit INR 13.53 bln vs INR 12.56 bln year ago 
--Mphasis Apr-Dec consol revenue INR 116.37 bln vs INR 105.20 bln year ago 
--Mphasis Oct-Dec consol BFS revenue INR 20.91 bln vs INR 20.16 bln qtr ago 
--Mphasis Oct-Dec consol insurance sales INR 6.04 bln vs INR 5.51 bln qtr ago 
--Mphasis Q3 tech media, telecom sales INR 7.42 bln vs INR 7.62 bln qtr ago 
--Mphasis Oct-Dec revenue up 1.5% on qtr in constant currency 
--Mphasis Oct-Dec direct revenue up 1.9% on qtr in constant currency 
--Mphasis Oct-Dec total new contract wins $428 mln vs $528 mln qtr ago 
--Mphasis Oct-Dec operating margin 15.2% vs 15.3% qtr ago 
 

 

By Shakshi Jain

 

MUMBAI – Mid-cap information technology services company Mphasis Ltd. Thursday reported a lower-than-expected bottom line for the December quarter, partially dragged down by a one-time impact from changes prompted by the new labour codes. The company's net profit returned to the declining territory on a sequential basis after registering growth in the trailing quarter. Meanwhile, the top line of the company grew in low single digits sequentially, helped by growth in the banking and financial services and the insurance segments. This growth was also slower than the sequential top line growth recorded in the September quarter.

 

The IT player's consolidated revenue rose 2.6% sequentially and over 12% on year to INR 40.03 billion for the December quarter. This was largely in line with analysts' consensus revenue estimate of INR 40.05 billion. 

 

Mphasis' consolidated net profit for the reporting quarter fell 5.7% sequentially but rose 3.4% on year to INR 4.42 billion. It was partially dragged down by a one-time cost of INR 354.77 million arising from the implementation of the new labour codes. However, even in the absence of the one-time cost, the company's bottom line for the reporting quarter would have still fallen short of the Street's expectation of INR 4.80 billion.

 

The new labour codes mandate that basic pay must account for at least 50% of an employee's total cost to the company. As a result, pay-outs and provisions tied to statutory contributions such as gratuity and leave-related benefits are set to increase for companies. 

 

Operating margin of the company contracted sequentially by 10 basis points to 15.2% in the December quarter.

 

In constant currency terms, Mphasis' revenue grew 1.5% on quarter and 7.4% on year for the December quarter, the company said in a press release. Its direct revenue grew 1.9% sequentially and 9.6% on year in constant currency for the same period.

 

Revenue from the company's core banking and financial services segment rose 3.7% sequentially to INR 20.91 billion in the December quarter, accounting for over 52% of the company's overall top line for the three months. Sales in the insurance segment, which accounted for 15% of Mphasis' overall revenue for the quarter, grew almost 10% sequentially to INR 6.04 billion in Oct-Dec. Meanwhile, revenue contribution from the company's technology, media, and telecom segment fell marginally to INR 7.42 billion in the December quarter. This category contributed 18.5% of the company's overall revenues for the quarter. Revenue from the logistics and transportation segment was largely unchanged on a sequential basis at INR 2.18 billion in the December quarter.

 

Mphasis reported a total contract value of $428 million for the December quarter. This is lower than the $528 million worth of orders bagged by the company in the September quarter and $760 million worth of orders won in the June quarter. 

 

"We are pleased with our continued progress on all metrics around growth across the business. Our Mphasis NeoIP artificial intelligence platform, is supersising our pipeline and deals, paving the way for faster revenue growth and continues gains in wallet share driven wins," the company's Chief Executive Officer and Managing Director Nitin Rakesh said.

 

Mphasis' total expenses grew in tandem with its top line in the December quarter–-2.5% sequentially and over 12% on year to INR 34.35 billion. This was driven by a near 12% sequential rise in depreciation and amortisation expense of the company to INR 1.43 billion and a 9.8% growth in its other expenses to INR 10.27 billion for the quarter. Meanwhile, employee benefit expenses declined 0.8% on quarter to INR 22.24 billion and its finance costs declined 6% sequentially to INR 411.26 million in Oct-Dec, partially limiting the rise in expenses.

 

In the first nine months of 2025-26 (Apr-Mar), the company's consolidated bottom line rose almost 8% on year to INR 13.53 billion and its revenue from operations grew nearly 11% on year to INR 116.37 billion.

 

Mphasis announced its December-quarter earnings post market hours. Ahead of the announcement, shares of the company closed Thursday's session marginally higher at INR 2,810.10 on the National Stock Exchange.  End

 

US$1 = INR 91.63

 

Edited by Tanima Banerjee

 

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