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Revenue
₹4,243 Cr
verified against source
Revenue YoY
7.1%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Mphasis delivered a strong Q4 FY26 with constant currency revenue growth of 7.1% YoY and direct revenue growth of 9.2% YoY, driven by AI-led transformation programs. The company achieved record annual net new TCV of $2.1 billion, up 68% YoY, with 69% of the pipeline AI-tagged. BFSI vertical grew 17.4% YoY in direct revenue, while insurance surged 46.5%. EBITDA margin expanded 20 bps sequentially to 15.4%, within the target band. Management guided for high single-digit to low double-digit growth in FY27, maintaining margins at 14.75-15.75%. Key risks include macro uncertainty, potential productivity pass-through pressures, and working capital intensity from large deal ramp-ups.
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Guidance to track
- Management expects to deliver high single-digit to low double-digit growth in FY27, supported by AI transformation demand and strong pipeline conversion.
- Mphasis remains committed to operating within its stated EBIT margin band of 14.75% to 15.75% while continuing to invest in platforms and capabilities.
- The company expects to maintain an operating cash flow to net income conversion ratio of approximately 80% in FY27.
Risks flagged
- Ongoing macro and geopolitical uncertainty could lead to delayed decision cycles and project completions, as seen in the TMT vertical softness.
- Increased AI-driven productivity gains may lead clients to demand price concessions, though management believes structured commercial models mitigate this.
- Large annuity deals with upfront savings commitments require working capital investment, pressuring cash flow conversion to ~80% from historical >100%.
- Hedge losses from rupee depreciation will continue to weigh on reported EBIT margins in H1 FY27, delaying the benefit of currency tailwinds.
Key quotes
- AI does not primarily create value by upgrading systems. It creates value by upgrading work.
- We are also seeing a decisive move from experimentation to scale deployment.
- The pass through to clients is very measured and structured... a meaningful portion of the productivity gain has to be used and offered in additional automation or AI layers.
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