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Mphasis in Q1FY27 reported revenues of US$ 471 mn

ICICIdirect Research 24 Jul 2026 DISCLAIMER

News: Mphasis in Q1FY27 reported revenues of US$ 471 mn, up 2.1% QoQ/ 8.3% YoY in CC terms. Direct Revenue grew 2.2% QoQ/ 9.9% YoY in CC terms. Geography wise on a QoQ CC basis, Others (7% of the mix) and Americas (85% of the mix) grew by 5.5% and 3.8% while EMEA (8% of the mix) declined by 15.4%. Vertical wise on a QoQ CC basis, TMT (18% of the mix), Others (10% of the mix) and BFSI (53% of the mix) grew by 15.5%, 5.2% and 0.7% while Logistics (4% of the mix) and Insurance (15% of the mix) declined 15.7% and 3.1%. The EBIT margin stood at 14.8%, down ~60 bps QoQ. PAT stood at ₹490 crore, down 4% QoQ/ up 11% YoY. The company reported TCV wins of US$ 461 mn, up 13% QoQ/ down 39% YoY on a higher base, with ~ 63% being AI-led and included 3 large deals with one >US$100 mn deal. 

View: Mphasis reported a steady quarter with 2.1% QoQ CC growth, supported by strong Americas performance and continued traction in BFSI, while TMT saw a sharp sequential rebound; however, Logistics, Insurance and EMEA remained weak. Deal momentum remains healthy with US$461 mn TCV, TTM TCV exceeding US$1.8 bn and a strong backlog, while ~70% of the pipeline is AI-led. Management expects Q2FY27 to deliver its best sequential CC growth in the last three years, supported by deal ramp-ups, shorter-cycle deals and growing traction for Mphasis TRIA, which is already influencing large deals and moving opportunities from pilots to business adoption. The company maintained its FY27 revenue growth guidance of high single-digit to low double-digit and EBIT margin band of 14.75–15.75%. We await management commentary for further insights.

Impact: Positive

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