Mphasis Q1 FY26 results: net profit up 9.2% to ₹441.70 crore, revenue up 9.1%

How did Mphasis perform in Q1 FY26?

Mphasis reported consolidated revenue of ₹3,732 crore for Q1 FY26, against ₹3,422 crore in Q1 FY25 and ₹3,710 crore in Q4 FY25. EBITDA was ₹702.87 crore, compared with ₹618.55 crore a year earlier and ₹702.56 crore in the previous quarter. EBITDA margin was 18.8%, up 0.7 percentage points year on year and down 0.1 percentage points sequentially.

Profit before tax was ₹610.07 crore, up from ₹537.32 crore in Q1 FY25 and ₹591.10 crore in Q4 FY25. Net profit was ₹441.70 crore, compared with ₹404.51 crore a year earlier and ₹446.49 crore in the previous quarter. Basic EPS was ₹23.22, against ₹21.40 in Q1 FY25 and ₹23.51 in Q4 FY25.

On a standalone basis, Q1 FY26 revenue was ₹2,237.37 crore and profit after tax was ₹298.18 crore. The consolidated and standalone financial results were approved by the board and reported as audited.

What changed in Mphasis' costs and profit?

Total expenses increased by ₹244.68 crore, or 8.3%, to ₹3,203 crore from ₹2,959 crore in Q1 FY25. Employee cost rose ₹110.46 crore, or 5.4%, to ₹2,144 crore, while other expenses increased ₹115.25 crore, or 15.0%, to ₹885.13 crore. Depreciation increased ₹26.91 crore, or 25.6%, to ₹131.92 crore, while finance costs fell ₹7.94 crore, or 16.0%, to ₹41.82 crore.

Other income increased by ₹7.40 crore, or 10.1%, to ₹80.95 crore from ₹73.55 crore. There was no exceptional item in either quarter. Profit before tax rose ₹72.75 crore, or 13.5%, to ₹610.07 crore, but tax expense increased ₹35.56 crore, or 26.8%, to ₹168.37 crore, resulting in a ₹37.19 crore, or 9.2%, increase in net profit.

Against Q4 FY25, total expenses rose ₹24.48 crore, or 0.8%, while other income increased ₹21 crore, or 35.0%, to ₹80.95 crore. Tax expense rose ₹23.76 crore, or 16.4%, to ₹168.37 crore, and net profit fell ₹4.79 crore, or 1.1%, to ₹441.70 crore.

How has Mphasis done over the last 8 quarters?

Revenue increased year on year in each of the last six quarters and reached ₹3,732 crore in Q1 FY26. Net profit rose year on year in each of the last five quarters, but declined from ₹446.49 crore in Q4 FY25 to ₹441.70 crore in the latest quarter.

Revenue reached its highest level in the eight-quarter series at ₹3,732 crore in Q1 FY26, while net profit peaked at ₹446.49 crore in Q4 FY25. EBITDA margin peaked at 19.0% in Q3 FY25, bottomed at 18.0% in Q3 FY24 and stood at 18.8% in Q1 FY26.

Which businesses drove the quarter?

Banking and Financial Services reported revenue of ₹1,967.93 crore, up 20.7% from ₹1,630.17 crore in the year-ago quarter. Segment EBIT was ₹630.86 crore, compared with ₹422.27 crore, and the EBIT margin was 32.1%.

Insurance revenue was ₹510.50 crore, up 31.8% from ₹387.29 crore, while EBIT was ₹178.34 crore against ₹132.44 crore. The EBIT margin was 34.9%. Technology Media and Telecom revenue rose 23.1% to ₹675.72 crore from ₹548.96 crore; EBIT was ₹130.45 crore against ₹135.61 crore, with a 19.3% margin.

Logistics and Transportation revenue fell 53.6% to ₹217.09 crore from ₹468.36 crore, and EBIT declined to ₹12.59 crore from ₹151.23 crore. Others revenue was ₹362.90 crore, down 6.0% from ₹386.06 crore, while EBIT was ₹127.15 crore against ₹127.45 crore.

What else did the company announce?

The board approved the audited standalone and consolidated financial results for the quarter ended 30 June 2025 along with the auditors’ report. The same-day filings also included the investor presentation for the Q1 FY26 results and the chairperson’s speech at the 34th Annual General Meeting.

Members approved the declaration of a final dividend of ₹57 per equity share at the 34th AGM. All resolutions in the meeting notice were approved with the requisite majority, and S P Nagarajan was appointed scrutiniser for the e-voting process. The same-day filing did not announce a new fund raise or board appointments.

The results filing also stated that Mphasis Corporation entered into a stockholders agreement on 3 July 2025 to acquire a 26% equity stake in Aokah Inc. for USD 4 million. Aokah is expected to support the generation of customer opportunities with prospective global capability centre end users.

What did Mphasis' management say?

Management said quarterly TCV wins reached $760 million, of which 68% were AI-led. The pipeline rose 16% sequentially and 84% year on year, while Banking and Financial Services pipeline increased 47% and non-BFS pipeline increased 108% year on year. Direct International revenue rose 8.1% year on year at constant currency.

The company maintained FY26 revenue growth guidance of ~2x industry growth and an EBIT operating margin target within 14.75% to 15.75%. Management said Q1 EBIT margin was 15.3%. It also described Logistics as transitory and expected the vertical to recover through the remainder of FY26.

Management identified a gradual Logistics and Transportation recovery dependent on pipeline conversion, a higher effective tax rate from Minimum Alternate Tax in certain subsidiaries, DSO of 84 days after a 9-day increase caused by a one-off customer collection delay, and a 15.5% sequential decline in EMEA Direct following the ramp-down of a global customer’s European work. No analyst concerns were recorded.

How did Mphasis shares react?

The stock rose 4.7% within five minutes, 5.7% within 15 minutes and 5.1% within 30 minutes after the filing appeared after market hours. It closed 0.9% lower on the reaction day from its pre-results close, then was up 1.7% from that close by the next day’s close and up 3.0% by the fifth session.

The Computers - Software & Consulting industry median fell 1.0% on the reaction day, against a 1.6% decline for the Nifty Midcap 150. Mphasis therefore exceeded the industry median by 0.1 percentage points on the reaction day; by the fifth session, its excess return over the industry median was 6.2 percentage points. Earlier result days produced moves of 3.4%, 5.9%, 0.5% and 3.0%.

How did other Computers - Software & Consulting companies do?

Among 52 Computers - Software & Consulting peers that filed for the quarter, the median revenue growth was 7.5%. Mphasis revenue growth of 9.1% was higher than 23 peers and lower than 29 peers. The company therefore had 29 peers growing more slowly and 23 growing faster.

Of the 57 peers used for the profit comparison, 40 reported higher profit. Mphasis’s 9.2% year-on-year net profit growth compares with that peer group, while the available peer figures do not provide a median profit growth rate.