Mphasis Ltd. share price target

We attended the Mphasis Analyst Day, where management laid out its transition from a services-led model toward a platform-led, outcome-based AI model.

Mphasis Tria' unveiled. A governed Enterprise Agency Platform, delivering outcomes'. Moving from Agentic AI to Agency

Launched Mphasis Tria platform with aim to scale subscription/ARR rev. mix to 20-30% Maintain operating margins while improving gross margins We attended MPHL investor day, the company is shifting its operating model from traditional services to a combination of subscription/ARR +implementation + managed service model. The new operating model revenue mix is in low-single-digit that it aims to scale to 20-30% in the medium term. With those efforts, the company launched Mphasis Tria, its new enterprise AI platform to capture institutional memories and...

Mphasis has taken its first steps towards a platform-led, outcome-based pricing model with the launch of Mphasis Tria, its Enterprise Agency platform.

Q4FY26 & FY26 Performance: Mphasis reported revenues of US$ 463 mn, up 2.5% QoQ/ 7.1% YoY in CC terms. Direct Revenue (98.6% of the mix) grew 3.3% QoQ/ 9.2% YoY in CC terms. The EBIT margin stood at ~ 15.4%, up 20 bps QoQ. The company reported PAT of ~ 510 crore, up 15% QoQ/ 14% YoY. For FY26, revenue stood at US$ 1796 mn, up 6.7% YoY CC. EBIT margin came at 15.3%, flat YoY while...

Mphasis’ first-ever formal revenue guidance of high-single to low-double-digit growth for FY27, is in line with consensus expectations, but provides better comfort and visibility amid uncertainty from challenging macros and AIled deflation.

Delivers on FY26 guidance. Guides for FY27 revenue growth of high single digit -low double digit with stable EBIT margin

Mphasis’s (MPHL) 4QFY26 revenue rose 2.5% QoQ in constant currency (CC), in line with our estimate of 2.5% QoQ CC. Direct revenue rose 3.3% QoQ CC and 9.2% YoY CC. TCV rose 4.4% YoY to USD407m.

Mphasis' earnings remained resilient in Q3FY26, marked by continued momentum in strategic deal wins and robust execution across its core verticals. The quarter was supported by strong pipeline conversion, successful ramp-up of large deals and...

We met with the CFO of Mphasis to discuss AI, demand trends, large deals, and the balance sheet. Management’s key message was that the current AI debate is running ahead of business reality.

Broadly in-line performance in 3Q. Likely to have a robust 4Q exit QoQ. Likely high single digit USD growth in FY26. >2x Industry rate

Q3FY26 Performance: Mphasis reported revenues of US$ 451 mn, up 1.4% QoQ/ 7.6% YoY (up 1.5% QoQ/7.4% YoY in CC terms). Direct Revenue (97.9% of the mix) grew 1.9% QoQ/ 9.6% YoY in CC terms. Reported EBIT margin at 15.2%, was down ~6 bps QoQ/ ~11 bps YoY. Adjusted PAT (ex-one off from new labour code) stood...

Mphasis’s (MPHL) 3QFY26 revenue rose 1.5% QoQ in Constant Currency (CC), largely in line with our estimate of 1.3% QoQ CC. Direct revenue rose 1.9% QoQ CC and 9.6% YoY CC.

The likely loss of a top 5 customer (in the logistics space) has impacted growth but offset to an extent by BFSI and Technology verticals

Q2FY26 Performance: Mphasis reported revenues of US$ 445 mn, up 1.8% QoQ/ 3.6% YoY (up 2% QoQ/6% YoY in CC terms). Direct Revenue (97.5% of the mix) 2.2% QoQ/ 7.9% YoY in CC terms. The EBIT margin at 15.3%, was flat QoQ/ down ~10 bps YoY. PAT came at 469 crore (up 6.2% QoQ/ 10.8% YoY). It won a broad based...

Mphasis’s (MPHL) 2QFY26 net revenue rose 1.2% QoQ in Constant Currency (CC), largely in line with our estimate of 1.5% QoQ CC.

driven by its AI-driven growth initiatives and steady conversion of pipeline to revenue. Therefore, we reiterate our ACCUMULATE rating on the stock, with a revised target price of Rs. 3,113 based on 28x FY27E adjusted EPS....

Mphasis weak and volatile QoQ growth for many quarters was due to - high US mortgage rates, underinvestment in large deals, client specific

The revenue growth performance (+1.0% QoQ CC) was tad below our estimates (+1.4% QoQ CC), attributed to L&T business (down 46% QoQ) due to client-specific investments, which largely got offset through continued momentum in other parts of the portfolio. More importantly, the Direct business stood on a strong footing, grew 1.6% QoQ CC, led by BFS (+8.1% QoQ) and Insurance (+21.0% QoQ). The record high deal TCV of USD760m (80%+ New Gen) aided by four large deal wins in Q1 of three 100m+ TCV and one...

Mphasis demonstrated strong financial performance, with 2.9% q/q, 5.4% y/y revenue growth in CC, driven by significant contribution from the BFS sector (50% of revenue) and a sharp rebound in the Technology, Media & Telecommunications segment (18% of revenue).