Mphasis has announced its Q2 FY27 results, showcasing robust year-over-year revenue growth of 11.3% in constant currency, driven by AI-led modernization deals and new wins. The company’s pipeline remains strong, with 71% being AI-led, and Total Contract Value (TCV) wins at $466 million for the quarter. Mphasis provided guidance for FY27, anticipating low double-digit revenue growth and stable margins.
Mphasis Q2 FY27 Performance Highlights
Mphasis announced its financial results for the quarter ended September 30, 2026 (Q2 FY27), highlighting broad-based growth and strong Total Contract Value (TCV) wins. Direct revenue saw a growth of 3.5% sequentially (QoQ) and 11.3% year-over-year (YoY) in constant currency terms. Significant contributions came from BFS Direct, which grew 4.5% QoQ and 15.0% YoY, and TMT Direct, up 10.9% QoQ. The company also noted strong sequential growth in the Americas and ROW regions. Growth in APPS and BPO segments was bolstered by AI-led modernization deals and new client acquisitions.
Pipeline and Deal Wins
The company’s pipeline is at record levels, demonstrating a 23% YoY growth, with a substantial 71% of the pipeline being AI-led. The pipeline spans across various verticals, deal sizes, and archetypes. Mphasis secured TCV wins totaling $466 million for the quarter, with 66% of these wins being AI-led. Five large deals were secured in Q2 FY27, contributing to a Trailing Twelve Month (TTM) TCV of $1.8 billion. The company emphasized strong traction in its Tria-led process modernization deals.
Financial Metrics and Margins
Financial performance metrics for Q2 FY27 included a revenue of $486 million, up 3.3% from Q1 FY27. Operating margins remained stable, reported at 14.8% for Q2 FY27. Earnings Per Share (EPS) stood at 29.4 INR for the quarter, marking a 14.6% increase. Cash flow generation was reported at $34 million on a normalized basis.
FY27 Guidance and Outlook
Looking ahead, Mphasis is positioned for continuing momentum into Q3 FY27. The first half of FY27 has set a strong foundation, and the company expects the second half to maintain this momentum. Mphasis anticipates revenue growth in the low double-digits for FY27, despite a potentially uncertain macro environment, driven by strong execution. Disciplined execution is expected to result in stable margins within the target band of 14.75%–15.75%. The company also aims for an 80% conversion of Net Income to Operating Cash Flow, normalized in FY28.
Source: BSE
