Athira Sethu
Kochi, 1 Nov 2025
Bengaluru-based Mphasis recorded steady growth in the second quarter of FY26, powered by strong deal wins and a sharp focus on AI-led transformation. Revenue from operations grew 10.34% YoY to ₹3,901.91 crore against ₹3,536.14 crore in Q2 FY25. On a Q-o-Q basis, it rose 4.53%, showing sustained business momentum.
The net profit improved 6.18% sequentially, reflecting efficient execution and stable margins. Operating margins stayed firm at 15.3% within the company’s target band of 14.75–15.75%. This indicates that Mphasis maintained profitability while making heavy investments in AI and modernization.
| Parameter | Q2 FY25 | Q2 FY26 | YoY Growth |
| Revenue (₹ Cr) | 3,536.14 | 3,901.91 | +10.34% |
| Net Profit | — | — | +6.18% (QoQ) |
| Operating Margin | 15.3% | 15.3% | Stable |
| Deal Pipeline (USD Mn) | — | — | +97% |
| Total Contract Value (USD Mn) | 207 | 528 | +155% |
| Headcount | — | — | Stable |
The company has posted the highest-ever revenue and EPS this quarter. CEO Nitin Rakesh said early investments in AI have positioned Mphasis as a strategic partner for the transformation of enterprises in their operations with automation and intelligence.
The company closed USD 528 million in new total contract value, or TCV, during the quarter, a 155% jump from Q2 FY25. More than 87% of these wins were in new-generation digital and AI services. Its deal pipeline grew 97% year-on-year and 9% sequentially, with 69% of the pipeline AI-led, showing growing demand for its new platforms such as NeoIP™, NeoCrux™, and NeoZeta™.
Headcount remained the same, supported by large deal ramp-ups and a focus on AI-first delivery models.
Overall, the quarter reflected broad-based growth across sectors. The BFS vertical grew 17.3% YoY, followed by Insurance at 32%, and TMT at 26%, mainly on the basis of new client wins and expanding the scope with existing accounts.
| Vertical | YoY Growth |
| Banking & Financial Services | 17.3% |
| Insurance | 32.2% |
| TMT (Tech, Media, Telecom)** | 26.7% |
| Logistics & Transportation | -56.5% |
| Others | -7.7% |
With strong AI-led deal wins, record pipelines, and solid profitability, Mphasis expects to outperform industry growth in the coming quarters.
