More Stories

Informist, Friday, Jul. 24, 2026

 

Please click here to read all liners published on this story

--Mphasis Apr-Jun consol net profit INR 4.90 bln
--Analysts saw Mphasis Apr-Jun consol net profit at INR 5.30 bln
--Mphasis Apr-Jun consol revenue INR 43.84 bln
--Analysts saw Mphasis Apr-Jun consol revenue at INR 44.29 bln
--Mphasis Apr-Jun consol net profit INR 4.90 bln vs INR 5.10 bln qtr ago
--Mphasis Apr-Jun consol revenue INR 43.84 bln vs INR 42.43 bln qtr ago
--Mphasis Apr-Jun consol BFS revenue INR 23.55 bln vs INR 23.03 bln qtr ago
--Mphasis Q1 consol insurance revenue INR 6.66 bln vs INR 6.79 bln qtr ago
--Mphasis Q1 tech media, telecom sales INR 8.12 bln vs INR 6.89 bln qtr ago
--Mphasis Q1 logistics, transport sales INR 1.88 bln vs INR 2.18 bln qtr ago
--Mphasis Apr-Jun direct revenue up 2.2% on qtr in constant currency
--Mphasis Apr-Jun operating margin 14.8%, down 60 bps on qtr
--Mphasis Apr-Jun total new contract wins $461 mln vs $407 mln qtr ago
--Mphasis Q1 gross sales at $471 mln, up 2.1% on qtr in constant currency
--Mphasis Q1 BFS pipeline dn 2% on qtr, non-BFS pipeline up 18% on qtr
--Mphasis Q1 direct sales from Americas up 3.9% QoQ in constant currency
--Mphasis Q1 BFS revenue $248 mln
--Mphasis Q1 BFS direct revenue up 0.8% on qtr in constant currency
--Mphasis Q1 insurance sales $70 mln, dn 3.1% QoQ constant currency
--Mphasis Q1 tech media, telecom sales $86 mln
--Mphasis Q1 tech media, telecom sales up 16.4% QoQ in constant currency
--Mphasis:See Q2 to record best QoQ growth in constant currency in last 3 yrs
--Mphasis: See Q2 growth to be broad-based
--Mphasis maintains revenue, margin guidance for FY27
--Mphasis retains view of high-single to low double-digit growth in FY27
--Mphasis retains view on FY27 margins at 14.75.75%
 

 

By Sunil Raghu

 

AHMEDABAD – Mphasis Ltd. reported a sequential fall in its consolidated net profit for the June quarter, driven by a fall in sales and lower operating margins, despite a steady ramp-up in recent large deals and gains in strategic accounts. Its consolidated revenue for the quarter clocked subdued growth on a sequential basis, courtesy a slight improvement in the tech media, telecom sales verticals and higher sales across the Americas and rest of the world. The company also saw a rise in its key expense during the quarter, employee costs, from both the trailing quarter and a year ago, putting pressure on its financials.

 

The company failed to meet the expectations of the Street in both net profit and revenue terms. Analysts had expected Mphasis to report a moderate sequential rise in its consolidated net profit and revenues for the June quarter on the back of execution of a healthy order book, ramp-up of large deals, and some inorganic contribution from the recently acquired Theory and Practice Business Intelligence Inc.

 

The mid-cap information technology major reported a consolidated net profit of INR 4.9 billion for the reporting quarter, down nearly 4% sequentially and up over 11% on year. This was below analysts' consensus estimate of INR 5.3 billion. The company's consolidated revenue for the quarter rose a little over 3% sequentially and more than 17% on year to INR 43.84 billion, also a tad below the INR 44.29 billion estimated by the Street. 

 

For the quarter ended June, the IT major reported revenue of $471 million, compared to $463 million in the trailing quarter. This was higher than the $468.08 million in revenue estimated by the Street. In constant currency terms, the company's revenue for the reporting quarter grew 2.1% on a sequential basis. Its direct business sales for the quarter grew 1.9% sequentially in dollar terms and 2.2% in constant currency. 

 

Revenue from the company's largest segment, banking and financial services, grew over 2% sequentially to INR 23.55 billion. In dollar terms, revenue from the segment was $248 million in the reporting quarter, up nearly 1% sequentially in constant currency terms. The growth was driven by wallet share gains and growth in new deal wins, Mphasis said in a post-earnings investor presentation.  

 

Sales from the insurance segment fell 2% sequentially to INR 6.66 billion in Apr-Jun. In dollar terms, revenue from the segment was $70 million in the reporting quarter, down over 3% in constant currency terms. 

 

Revenue from the company's logistics and transportation vertical fell 14% on a sequential basis to INR 1.88 billion in the reporting quarter, led by the impact of war in West Asia. In dollar terms, revenue from the segment fell nearly 16% from the previous quarter to $20 million.

 

Revenue from its technology, media, and telecommunication vertical rose over 18% to INR 8.12 billion. In dollar terms, revenue from the segment was $86 million, up over 16% sequentially in constant currency.

 

Revenue from the company's business from Americas was $402 million in the reporting quarter, up nearly 4% sequentially in constant currency terms. The company's sales from the Europe, West Asia, and the Africa region were $38 million in the June quarter, down nearly around 15% in constant currency terms. The rest of the world segment earned 6% higher revenue at $32 million, courtesy global capability centres.  

 

 

The company's total expenses in the June quarter rose over 3% on quarter to INR 37.85 billion, driven by an over 4% sequential jump each in other expenses at INR 11.80 billion and employee benefit costs at INR 24.09 billion. Its finance costs for the quarter dropped over 37% sequentially to INR 485 million. The company's operating margin fell 60 basis points to 14.8% from 15.4% in the March quarter.
 
For Apr-Jun, Mphasis' net new total contract value was $461 million, much higher than the $407 million a quarter ago. This was primarily due to three big contract wins, the company said. 

 

The company expects to deliver between high single-digit and low double-digit growth going forward on the back of strong execution despite macroeconomic uncertainities, it said in its presentation. It expects the September quarter to see the "best sequential growth" in constant currency terms in the last three years. 

 

The company also seeks disciplined execution with stable margins in the target band of 14.75-15.75%, and an 80% conversion of net income to operating cash flow, the company said.

 

"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," Nitin Rakesh, chief executive officer and management director, said in a press release on the June quarter earnings. 

 

On Thursday, shares of the company closed at INR 2,232.40, down almost 2% on the National Stock Exchange.  End

 

US$1 = INR 96.58

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.