Net New TCV
$2.1B
+68% YoY
Record annual net new total contract value, reflecting strong deal conversion and AI-led demand.
MPHASIS
Other
13 Apr 2026
Mphasis Ltd — Q4 FY26
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.
✓ Verified against BSE filing
2-Min Summary
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.
Key Numbers
Pipeline Growth
2.6x initial size
+38% YoY
Pipeline reached all-time high since launch of emphasis.ai, with 69% AI-tagged.
BFSI Direct Revenue Growth
17.4% YoY
+17.4% YoY
Strong growth in banking and financial services, driven by wallet share expansion and new wins.
Insurance Direct Revenue Growth
46.5% YoY
+46.5% YoY
Robust momentum from AI-driven decisioning in underwriting, claims, and risk operations.
Management Guidance
FY27 Revenue Growth: High single-digit to low double-digit
Management expects to deliver high single-digit to low double-digit growth in FY27, supported by AI transformation demand and strong pipeline conversion.
revenueEBIT Margin Target Band: 14.75% to 15.75%
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.
marginsOperating Cash Flow to Net Income Conversion: ~80%
The company expects to maintain an operating cash flow to net income conversion ratio of approximately 80% in FY27.
otherKey Risks
Macroeconomic uncertainty and client decision delays
Ongoing macro and geopolitical uncertainty could lead to delayed decision cycles and project completions, as seen in the TMT vertical softness.
medium · management_commentaryProductivity pass-through pressure from AI
Increased AI-driven productivity gains may lead clients to demand price concessions, though management believes structured commercial models mitigate this.
medium · analyst_questionWorking capital intensity from large deals
Large annuity deals with upfront savings commitments require working capital investment, pressuring cash flow conversion to ~80% from historical >100%.
medium · analyst_questionHedge losses impacting reported margins
Hedge losses from rupee depreciation will continue to weigh on reported EBIT margins in H1 FY27, delaying the benefit of currency tailwinds.
low · management_commentaryNotable 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.