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Informist, Thursday, Apr. 30, 2026

By Shakshi Jain and J. Navya Shruthi

NEW DELHI/MUMBAI – Mid-cap information technology services company Mphasis Ltd. expects to return to growth on a sequential basis in its technology, media, and telecom vertical in coming quarters, the company management said in a post-earnings conference call with analysts Thursday. In the banking and financial services segment, as well the insurance segment, the management is confident of sustaining the growth momentum in financial year 2026-27 (Apr-Mar).

"The TMT vertical saw some near-term softness due to project completions and delayed decision cycles due to macro and geopolitical uncertainty. We expect this segment to return to sequential growth in the coming quarters," Mphasis Chief Executive Officer and Managing Director Nitin Rakesh said.

In the March quarter, consolidated revenues from the company's technology, media, and telecom segment declined over 7% sequentially to INR 6.89 billion. Meanwhile, contribution from the banking and financial services segment, which accounts for a majority of the company's overall topline, rose over 10% on quarter to INR 23.03 billion. In the insurance segment, the consolidated revenue in Jan-Mar added up to INR 6.79 billion, up over 12% quarter-on-quarter.

Overall, Mphasis' consolidated net profit rose over 15% sequentially to INR 5.10 billion in the March quarter while its revenue rose 6% on quarter to INR 42.43 billion.

In FY27, Mphasis is targeting high-single-digit to low-double-digit growth, as per a presentation to investors. In terms of margins, the company aims to maintain the metric in the 14.75-15.75% band in the ongoing financial year. 

The company's deal pipeline growth remains broad-based and well-balanced across multiple dimensions, Rakesh said, later adding that productivity gains tied to artificial intelligence have increased year-on-year and the pass through to clients has been measured and structured. "But we're also using the meaningful portion of the saves in asking the client to reinvest into the expanded scope, additional automation, additional AI layers and organisation work."

Answering a question on client sentiment, Rakesh said, "I don't think we have seen any major cuts in pure tech budgets, but that's only part of the story." There is a sense of urgency to act at the enterprise side, given the pace of innovation, he said, adding that some of the spending is linked to complying with innovation to gain efficiency and drive business outcomes, but some of it is also very defensive in nature. 

According to Rakesh, clients are going to be selective, but they're not pulling back on spends. 

For differentiation of the company's modernisation offerings, Rakesh credited its technology stack. "Compared to a typical modernisation program that would have taken us years, we are now managing to deliver these in a fraction of time...So, the biggest differentiation really comes out of the stack that we've built and continued investment in deploying that stack at enterprise clients and delivering value that comes out of that stack."

At 1111 IST, shares of Mphasis traded over 2% higher at INR 2,299.80 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

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