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Earnings Call Transcript

Mphasis Earnings Call Transcript: Key Takeaways

Mphasis Q1 FY27 results show a pivot to AI-led growth through the 'Mphasis.ai' platform, despite near-term margin pressure from the Radook/Tap acquisition and ramp-up costs.

Guidance and delivery
Management target Revenue 10.0% FY27
Highlights
Revenue growth8.3% YoY growth in constant currency; 2.1% sequential growth.
MarginsEBITDA margin at 15.0%, impacted by acquisition and ramp-up costs.
Order bookQ1 TCV at $461M; fifth consecutive quarter above $400M.
Demand visibilityStrong pipeline at $2.8x previous size; TMT and BFSI recovering.
Management confidenceHigh; emphasizing AI-led deals and strong pipeline conversion.

Growth

Revenue grew 8.3% YoY in constant currency, driven by the Americas and BPO segments.

Outlook

Projecting best sequential CC growth in three years for Q2; FY27 growth high-single to low-double digits.

Risks

Margin compression due to acquisition costs and lower utilization; macro volatility in logistics/transportation.

Last quarter's promises, checked

Delivered

  • Guided 'better-than-industry' growth → delivered 6.7% FY26 CC growth (= BEAT)
  • Guided 14.75%-15.75% EBIT margin → delivered 15.3% FY26 EBIT margin (= BEAT)
  • Guided ~80% OCF/Net Income conversion → delivered ~80% FY26 conversion (= BEAT)

Partly delivered

  • Guided TMT recovery → delivered 16.4% QoQ growth but noted prior softness (= PARTIAL)

Missed

  • Guided ITO service line growth → delivered 21.6% YoY decline (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: MPHASIS. Summary written with AI assistance from the document.

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Mphasis Ltd: key numbers

Share price
₹2,234.00
Market cap
₹42,463 Cr
Revenue (annual)
₹15,880 Cr
Net profit (annual)
₹1,863 Cr
P/E (TTM)
22.2×Sector 22.1×
Promoter holding
30.54%-0.01% QoQ
FII holding
19.50%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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