Athira Sethu
Kochi, 24 July 2026
Mphasis shares are likely to remain in focus on Friday, July 24, after the IT services company reported June quarter results that beat revenue expectations despite weaker margins. The company also maintained its FY27 revenue and profitability guidance, while expressing confidence in stronger growth in the coming quarters. Mphasis said it expects the September quarter to deliver its best sequential constant currency revenue growth in the last three years, supported by a record deal pipeline, strong order wins, and growing demand for its AI-led services.
| Particulars | Q1 FY27 | Q4 FY26 |
| Constant Currency Revenue Growth | 2.1% QoQ | – |
| EBIT Margin | 14.8% | 15.4% |
| Margin Change | Down 60 bps | – |
| Total Contract Value (TCV) | $461 million | $407 million |
| Large Deals Signed | 3 | – |
| Biggest Deal Value | Over $100 million | – |
| Trailing 12-Month TCV | Above $1.8 billion | – |
FY27 Guidance
| Metric | Guidance |
| Revenue Growth | High single-digit to low double-digit (constant currency) |
| EBIT Margin | 14.75%–15.75% |
| Operating Cash Flow Conversion | Around 80% of net income |
Key Highlights
| Area | Details |
| Q2 Outlook | Expected to deliver the strongest sequential constant currency revenue growth in the last three years |
| Deal Pipeline | Record high, up 8% QoQ and 28% YoY |
| AI Business | AI-led pipeline has grown 2.8 times since the launch of Mphasis AI |
| Growth Drivers | Strong backlog and higher short-cycle deal activity expected to support future revenue |
Brokerage View
| Brokerage | Rating | Target Price | Key View |
| JPMorgan | Overweight | ₹2,600 | Revenue and deal wins exceeded expectations, though margins missed estimates. Positive on Q2 growth outlook and FY27 guidance. |
