Mphasis reported a strong second quarter for FY27, with revenue rising 17.4% YoY to Rs 4,580.93 crore and net profit increasing by 19.6% to Rs 561.13 crore. The company saw significant momentum with USD 466 million in new contract wins, 66% of which are AI-led. While growth remains robust, the company is evaluating a new CAD 6.60 million tax demand from Canadian authorities.
Mphasis Q2 FY27: Profits Rise on AI Momentum
Net Profit: Rs 561.13 crore | New TCV Wins: USD 466 million
Reader Takeaway: Strong AI-led contract growth drives earnings, though a new Canadian tax demand warrants monitoring for potential impact.
What just happened
Mphasis Limited announced its financial results for the quarter ending September 30, 2026. The company reported a consolidated revenue of Rs 4,580.93 crore, a 17.4% increase compared to the same period last year. Net profit attributable to equity owners reached Rs 561.13 crore, up 19.6% year-on-year. Sequential growth also remained positive, with revenue up 4.5% and net profit up 14.6% quarter-over-quarter.
Why this matters
The company’s performance highlights a significant uptake in its AI-led service offerings, which accounted for 66% of the USD 466 million in new Total Contract Value (TCV) wins during the quarter. Key new contracts include enterprise technology services for a major tech firm and digital commerce modernization for a telecommunications client, signaling strong demand for Mphasis's specialized IT solutions.
Tax and Regulatory Matter
Mphasis disclosed a new tax demand notice from the Canada Revenue Agency. The demand, totaling CAD 6.60 million (approximately Rs 44.59 crore), relates to GST/HST on Canadian operations. The company stated it is currently evaluating the basis for this demand.
Governance Update
The Board of Directors has updated its list of authorized personnel under Regulation 30(5) for determining information materiality. The authorized team for exchange disclosures now includes the CEO, CFO, General Counsel, and the Company Secretary.
What to track next
Investors should monitor the progression of the new AI-led contracts and the eventual resolution or financial impact of the Canadian tax demand. Margin stability will also remain a key area of focus, as operating margins remained flat sequentially at 14.8%.