Much like its peers in Indian IT, Mphasis has also delivered modest revenue growth. But the firms stole the show with record new contract wins fueled by strong adoption of AI services for the first quarter of FY26.
The company reported gross revenue growth Rs 3,732 crore, a 0.4% quarter-on-quarter (QoQ) and 9.2% year-on-year (YoY) on a reported basis.
When adjusted for constant currency, gross revenue grew 1.0% QoQ and 6.5% YoY.
Direct revenue, a key segment for Mphasis, rose 1.1% QoQ and 10.9% YoY on a reported basis, and 1.6% QoQ and 8.1% YoY in constant currency terms.
A notable highlight from the quarter was Mphasis’s record quarterly total contract value (TCV) wins, which reached $760 million, highest in the last eight quarters.
CEO and MD Nitin Rakesh said that 68% of this is AI-led.
“We were early adopters and implementers of AI based solutions for our clients, which has positioned us well to help with their AI journey, create efficiencies, cost-savings and minimise project risks, while at the same time, accelerating our business,” Rakesh added.
For comparison, the company secured deal wins worth $390 million during Q4 FY25, which was the highest in seven quarters. The company said 59% of those wins were driven by AI-led initiatives.
Among the company’s key deals during the quarter, a leading asset services firm appointed Mphasis to transform its wealth & investment management engineering platform by leveraging AI to deliver savings-led transformation.
The company’s net profit declined slightly by 1.1% QoQ but improved 9.2% compared to the same quarter last year, reaching ₹441.7 crore.
In Q4 of FY25, Mphasis’s revenue in rupee terms stood at ₹3,710 crore, up from ₹3,561.3 crore in the December quarter and ₹3,412 crore a year ago. Net profit for the quarter rose to ₹446.4 crore from ₹427.8 crore in Q3 and ₹393.2 crore in the same period last year.
The post Mphasis Reports Modest Q1 Growth Despite 68% AI-led Deal Wins appeared first on Analytics India Magazine.
