Mphasis announced strong Q2FY26 results, driven by its AI-led strategy. TCV wins reached $528 million, and AI contributed significantly to pipeline growth. Revenue increased, and the company continues to expand its AI capabilities with new platforms and solutions. Mphasis is focused on sustained execution and expanding AI propositions, expecting to outperform industry growth significantly.
Q2FY26 Performance Highlights
Mphasis reported strong financial results for Q2FY26, demonstrating the effectiveness of its strategic focus on AI and digital transformation. Key highlights include:
* Highest-ever Revenue and EPS.
* TCV wins reached $528 million.
* AI is driving significant pipeline growth.
AI-Driven Growth
Mphasis’s AI-led strategy is a key driver of its recent success. The company continues to invest in AI-driven growth initiatives, expanding its capabilities and solutions. Key developments include:
* Launch of the NeoIP™™ platform, a unified AI platform with purpose-built agents.
* Pipeline at record levels, with 69% AI-led.
* Continued investments in scaling AI-led propositions.
Financial Performance
* Revenue growth driven by Insurance and TMT verticals.
* BFS momentum continued with 13.8% YoY growth.
* Sustained strong TCV wins: $528 million, including one $100+ million deal with a new BFS client and two $50+ million deals.
* H1FY26 TCV exceeds full-year FY25 TCV; TTM TCV at $2.03 billion.
Client and Vertical Performance
Mphasis experienced growth across key verticals and client segments. Notable achievements include:
* BFS revenue growth driven by wallet share gains and new accounts; BFS Direct grew 17.3% YoY.
* Insurance and TMT verticals continued growth momentum with 25%+ YoY growth in Direct.
* Client pyramid strengthened by the addition of more clients in the $10Mn+ to $100Mn+ bands.
Outlook and Strategy
Mphasis is focused on sustained execution and expanding AI propositions. The company’s outlook includes:
* Focus on conversion of pipeline to TCV and TCV to revenue.
* Expectation of >2X industry growth, supported by strong H1 performance.
* Target operating (EBIT) margin within band of 14.75% – 15.75%.
DSO Movement
DSO has increased by 5 days.
Source: BSE
