MphasiS Limited Earnings Summary — Q4 FY2026
Mphasis Reports 14% YoY Revenue Growth and Re-appoints Nitin Rakesh as CEO
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹4,384 Cr is 17.5% higher year-on-year.
- Revenue has compounded at 11.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹490 Cr is 10.8% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 10.2% annualised across the period.
- Operating margin stands at 18.1% in Q1 FY2027.
- Operating margin compressed by 69 bps year-on-year.
- Over the last two years operating margin has expanded by 7 bps.
- PBT margin is 15.6%.
- Expenses grew 18.5% against revenue growth of 17.5%.
- Operating profit of ₹795 Cr is 13.1% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 73/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 4,384 | 4,243 | 4,003 | 3,902 | 3,732 | 3,710 | 3,561 | 3,536 | 3,422 | 3,412 |
| Expenses | Stable | 3,589 | 3,439 | 3,252 | 3,180 | 3,030 | 3,007 | 2,883 | 2,888 | 2,804 | 2,773 |
| Operating Profit | Stable | 795 | 804 | 750 | 722 | 703 | 703 | 678 | 648 | 619 | 639 |
| Operating Margin | Stable | 18.1% | 18.9% | 18.7% | 18.5% | 18.8% | 18.9% | 19.0% | 18.3% | 18.1% | 18.7% |
| Other Income | Volatile | 83 | 108 | 27 | 75 | 81 | 60 | 63 | 59 | 74 | 64 |
| Interest | Accelerating | 49 | 77 | 41 | 44 | 42 | 36 | 39 | 40 | 50 | 50 |
| Depreciation | Stable | 147 | 153 | 143 | 128 | 132 | 135 | 132 | 104 | 105 | 131 |
| Profit Before Tax | Improving | 683 | 681 | 593 | 625 | 610 | 591 | 569 | 563 | 537 | 522 |
| Tax | Improving | 193 | 172 | 151 | 156 | 168 | 145 | 141 | 139 | 133 | 129 |
| Net Profit | Stable | 490 | 510 | 442 | 469 | 442 | 446 | 428 | 423 | 405 | 393 |
| Net Margin | Stable | 11.2% | 12.0% | 11.1% | 12.0% | 11.8% | 12.0% | 12.0% | 12.0% | 11.8% | 11.5% |
Key Takeaways
- Revenue growth was primarily driven by the Banking and Financial Services (BFS) segment, which grew 23.9% YoY to ₹23,033 million.
- The Board recommended a final dividend of ₹62 per equity share for FY2026, pending shareholder approval.
- CEO and Managing Director Nitin Rakesh has been re-appointed for a second five-year term starting October 1, 2026.
- Significant acquisition activity continued post-quarter, including the purchase of OKIN Process customer contracts and 100% of Theory and Practice Business Intelligence (TAP).
- Insurance segment remains a strong growth pillar, surging 60.2% YoY in revenue to ₹6,791 million.
- Profitability was supported by a reduction in current tax expenses compared to the immediate prior quarter.
- The company reported a one-time exceptional charge of ₹354.77 million in Q3 FY26 related to New Labour Code impacts, which did not recur in Q4.
- Operating cash flows for the full year reached ₹12,532.81 million, though this represents a decline from the prior year's ₹19,052.02 million.
Management Guidance
Management is focusing on 'NeoJPTM' through the acquisition of Decision Intelligence platform TAP to enhance cognitive transformation capabilities. Acquisitions in early FY27 target digital transformation and business process outsourcing gaps.
Sentiment Shift
Improving
A strong Q4 performance across BFS and Insurance verticals, coupled with leadership continuity and aggressive M&A, outweighs the moderated full-year cash flow conversion.
Outlook
Bullish on BFS and Insurance verticals; future performance is expected to be bolstered by the integration of AI-led decision intelligence platforms and newly acquired BPO contracts.
From the Annual Report (Key Quotes)
“The Board of Directors of the Company has approved the re-appointment of Mr. Nitin Rakesh as Chief Executive Officer and Managing Director... for a term of 5 consecutive years.”
“TAP is expected to be a key catalyst for Mphasis NeoJPTM, introducing a critical decision intelligence layer to the Group's context engineering layer.”
“Proposed a final dividend of ₹62 per equity share for the year ended 31 March 2026... result in a cash outflow of approximately ₹11,831.99 million.”
Official Quarterly Documents
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This summary is AI-generated from MphasiS Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.