Mphasis reported its highest sequential revenue growth in the last three years for the January–March quarter of FY25, driven by robust performance across BFSI, TMT, and insurance segments.
The company’s revenue rose 2.6% sequentially in USD terms and 2.9% in constant currency, supported by strong deal wins and a record pipeline.
Revenue in rupee terms stood at ₹3,710 crore for Q4, 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.
Mphasis secured deal wins worth $390 million during the quarter, the highest in seven quarters, with 59% of those wins driven by AI-led initiatives, according to its investor presentation. The company’s total contract value (TCV) pipeline was at record levels, growing 26% sequentially and 86% year-on-year.
“In this uncertain macro environment, our focus is on continued investments in growth, keeping Tech and AI at the core, and leveraging solutions to transform and modernise our client’s technology and operations stack,” said Nitin Rakesh, CEO and MD of Mphasis.
Growth was led by the BFS and TMT verticals, with insurance also contributing significantly. The BFSI vertical posted a sequential growth of 5.6% and a year-on-year increase of 11.8%, while TMT grew 8.2% sequentially and 18.1% annually.
In contrast, the logistics and ‘others’ verticals were hit by macroeconomic uncertainties. The logistics segment declined by 7.7% from Q3 and 15.5% compared to last year, while the ‘others’ category fell 3.4% sequentially and 15.1% year-on-year.
The management stated that the company closed two large deals in Q4 and 13 large deals in FY25, with continued traction in proactive deal wins. They emphasized a broad-based spread of TCV wins across client archetypes and verticals.
Looking forward, Mphasis aims to maintain EBIT margins between 14.75% and 15.75% and expects to outperform industry growth, fueled by the successful conversion of TCV into revenue and sustained deal momentum.
Mid size IT firms have been performing better than their larger peers this quarter.
For example, LTIMindtree, the consulting arm of L&T, reported positive Q4 FY25 results with modest growth. With a 2.6% YoY increase in consolidated net profit for the fourth quarter of FY25, reaching ₹1,128.5 crore, up from ₹1,100.7 crore last fiscal.
Persistent Systems delivered better-than-expected results with a 25% year-on-year rise in consolidated net profit and revenues for Q4 FY25.
WNS posted quarterly revenue of $336.3 million, showcasing flat growth compared to the same period last year and only $3 million up from $333 million reported in the last quarter.
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