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Mphasis Limited is a global Information Technology solutions provider specializing in cloud and cognitive services. Founded in 1992 and headquartered in Bengaluru, India, the company offers application development and maintenance, infrastructure outsourcing, and business process outsourcing solutions to clients worldwide. Mphasis operates across various sectors including Banking and Financial Services, Logistics and Transportation, Technology Media and Telecom, Insurance, and others. The company uses a Front2Back transformation approach, leveraging cloud and cognitive technologies to deliver personalized digital experiences. Mphasis provides a range of services including application services, blockchain platform, business process services, cloud solutions, cybersecurity, digital transformation, enterprise automation, and infrastructure services. In 2016, Blackstone acquired a majority stake in Mphasis from Hewlett Packard Enterprise. The company has made several acquisitions to strengthen its capabilities, including Datalytyx and Blink UX.
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ICICI Securities recommends Mphasis buy with ₹2620 target
Company insights, generated from the most recent coverage.
Analyst sentiment on Mphasis is sharply divided: CLSA cites stretched valuations while Motilal Oswal sees 27% upside driven by strong AI-led deal wins.
Q1FY27 revenue surged 17.5% YoY with 63% of total contract value wins being AI-led, demonstrating mid-tier agility advantage over large-cap peers in capturing rapid AI deployment opportunities.
Client demand is shifting towards operationalizing AI and automating end-to-end workflows to reduce unit costs, signaling a move away from pure headcount billing.
The Quarter story
The two most recent quarterly results, compared side-by-side.
Mphasis delivers steady revenue growth and a stronger AI focus, but faces margin compression and slower cash generation.
Consolidated revenue grew from $437 Mn in Q1 FY26 to $471 Mn in Q1 FY27, showing steady top-line expansion.
Operating margin slipped from 15.3% in Q1 FY26 to 14.8% in Q1 FY27, indicating rising cost pressures.
Americas revenue rose from $365 Mn in Q1 FY26 to $402 Mn in Q1 FY27, driving overall company growth.
Net operating cash flow fell from $46 Mn in Q1 FY26 to $39 Mn in Q1 FY27, signaling tighter liquidity.
APPS revenue increased from $322 Mn in Q1 FY26 to $356 Mn in Q1 FY27, confirming consistent segment strength.
ITO revenue declined from $50 Mn in Q1 FY26 to $41 Mn in Q1 FY27, reflecting legacy service contraction.
AI-led pipeline share climbed from 68% in Q1 FY26 to 70% in Q1 FY27, reflecting a clear strategic focus.
Security pipeline mix dropped from 15% in Q1 FY26 to 3% in Q1 FY27, showing a major shift in project focus.
EPS rose from ₹23.2 in Q1 FY26 to ₹25.6 in Q1 FY27, keeping earnings resilient.
TCV wins fell from $760 Mn in Q1 FY26 to $461 Mn in Q1 FY27, pointing to a slower deal pipeline.