ICICI Securities has issued a buy rating on Mphasis with a target price of ₹2,620 in its research report dated May 03, 2026. According to the brokerage's analysis, the company's first-ever formal revenue guidance of high-single to low-double-digit growth for FY27 aligns with consensus expectations while providing better comfort and visibility amid challenging macroeconomic conditions and AI-led deflation trends.
The guidance is supported by record deal TCV in FY26, up 68% YoY, and a healthy deal pipeline that increased 38% YoY. As reported by ICICI Securities, the company has demonstrated strong growth momentum in the BFSI sector. Operating margin expansion has been particularly impressive in FY26, with margins up 80 basis points YoY (excluding hedge losses).
According to the brokerage's analysis, rising share of fixed-price contracts (up 1,000 basis points YoY) and revenue per employee (up 21% over two years) signal a strategic pivot toward an AI-driven business model. ICICI Securities expects margins to remain range-bound in FY27, while the company's 80% OCF/NI target for FY27 addresses concerns on cashflow conversion.
ICICI Securities continues to value Mphasis at 20x on FY28 EPS of ₹131, arriving at the target price of ₹2,620. The brokerage maintains its buy rating on the stock, reflecting confidence in the company's strategic positioning and growth prospects in the evolving AI landscape.
