Mphasis reported Q3 FY26 revenue of $451Mn, growing 1.5% sequentially and 7.4% YoY in constant currency. Direct business grew 1.9% QoQ and 9.6% YoY. The company won net new TCV of $428Mn, including 4 large deals. LTM TCV doubled to $2.1Bn. Mphasis is witnessing strong interest in its NeoIP platform, reflected in a record pipeline with 69% AI-led deals.
Financial Performance
Mphasis announced its Q3 FY26 results, with revenue reaching $451Mn. This represents a sequential growth of 1.5% and a year-over-year growth of 7.4% in constant currency terms. The direct business contributed approximately 98% of the overall revenue, growing 1.9% sequentially and 9.6% YoY. The company’s annualized run rate now exceeds $1.8Bn.
EBIT margin remained stable at 15.2%. Operating profit for the quarter grew 2.2% sequentially and 11.6% YoY to INR6,089 million. Operating cash flow generation was $43Mn for the quarter, with DSO at 91 days.
New Deal Wins and Pipeline
Mphasis secured net new TCV wins of $428Mn in Q3, including four large deals. Notably, two of these deals exceeded $50Mn. The company’s LTM TCV has doubled to $2.1Bn, driven by AI-led propositions.
The deal pipeline is at record levels, with 66% YoY growth and 69% of the pipeline being AI-led. The large deal pipeline has increased significantly by 91% YoY.
Segment Performance
The BFS and Insurance verticals continued their growth momentum. At a company level, BFS grew 14.8% YoY. Direct BFS grew 2.5% sequentially and 18% YoY. The Insurance vertical grew 36% YoY. The BFSI vertical performance combined was a strong 3.7% sequential growth and contributed to 66% of revenue. Enterprise Apps now contributes to 75% of overall revenue, increasing 3.7% sequentially.
Strategic Focus on NeoIP
The company is seeing AI adoption, capability, and value creation happening simultaneously. To address this opportunity, Mphasis built and launched its market-leading AI platform, Mphasis NeoIP™.
Looking Ahead
Mphasis expects to continue its sustained steady conversion of pipeline to TCV and TCV to revenue. The company anticipates growth to be greater than 2x of the industry growth, building on the momentum from the last nine months and the correlation between TCV and revenue.
Source: BSE
