Mphasis Reports 10.79% Rise in Net Profit and 10.34% Revenue Growth for Q2FY26

Mphasis, an IT solutions provider, has reported robust financial results for the second quarter of Fiscal Year 2026 (Q2FY26). The company posted a consolidated net profit of Rs 469 crore, marking a significant increase of 10.79% compared to Rs 423.3 crore in the same quarter of the previous fiscal year (Q2FY25). Revenue from operations also saw a healthy uptick, rising by 10.34% year-on-year to Rs 3,901.91 crore from Rs 3,536.14 crore in Q2FY25. On a sequential basis, Mphasis demonstrated continued growth, with profit rising by 6.18% and revenue by 4.53% from the first quarter of FY26. The company secured new Total Contract Value (TCV) wins amounting to $528 million in its direct business, with an impressive 87% of these wins coming from new-generation services. Total income for the quarter stood at Rs 3,976.5 crore.

Impact: This news is positive for Mphasis investors, indicating strong operational performance and successful strategic execution, particularly in AI. It suggests the company is well-positioned in high-growth areas like new-gen services and AI, potentially leading to increased investor confidence and a positive impact on its stock price. The growth drivers, including insurance, TMT, and BFS verticals, show diversification and strength across key sectors. Impact Rating: 7/10

Definitions: * TCV (Total Contract Value): The total value of a contract over its entire term. For Mphasis, it represents the total revenue expected from new deals signed. * EPS (Earnings Per Share): A company's net profit divided by the number of outstanding shares. It's a key indicator of profitability per share. * YoY (Year-on-Year): A comparison of a company's performance metrics from one period to the same period in the previous year. * New-gen services: Refers to modern, advanced technology services such as cloud computing, artificial intelligence, data analytics, cybersecurity, and digital transformation, as opposed to traditional IT services. * BFS (Banking, Financial Services and Insurance): A sector that includes banks, financial institutions, and insurance companies. * TMT (Technology, Media, and Telecommunications): A combined sector encompassing technology companies, media outlets, and telecommunication providers.