Mphasis has reported strong financial results for the quarter and financial year ended March 31, 2026. The company achieved a record annual net new TCV of $2.1 billion+, representing a 68% growth, while the Q4 revenue grew by 2.5% QoQ and 7.1% YoY in constant currency. These results are underscored by a significant expansion in AI-led deals, which now account for 69% of the total pipeline.
Financial Performance Overview
Mphasis concluded the fiscal year 2026 with robust growth across its core segments. The direct business, which constitutes 98.6% of the total revenue, recorded a growth of 3.3% sequentially and 9.2% YoY in constant currency. For the full year, the company reported revenue of $1,796 million, marking a 6.7% growth. EPS also saw a positive trend, rising by 10.4% to 99.2 INR for the fiscal year.
Strategic AI Momentum
A primary driver for Mphasis in FY26 has been the aggressive scaling of its AI capabilities. The launch of the NeoIP™ platform and specialized AI suites has enabled the company to achieve a record pipeline, with 69% of deals being AI-led. This momentum is reflected in the strong correlation between TCV wins and revenue, with four large deals secured in the fourth quarter alone, contributing to a total quarterly net new TCV of $407 million.
Segment and Vertical Highlights
The company experienced strong demand across key verticals. The Banking & Financial Services (BFS) sector grew by 6.4% QoQ and 17.4% YoY, driven by wallet share gains. Additionally, the Insurance vertical maintained strong momentum with a 46.5% YoY increase in direct revenue. Geographically, both the Americas and EMEA regions showed resilient sequential growth, with EMEA specifically benefiting from the ramp-up of recent large-scale deals.
Outlook for FY27
Looking ahead, Mphasis remains focused on maintaining its execution discipline. The company has set a growth target of high single-digit to low double-digit for the coming year. Strategic priorities include continued investment in the Neo platform and the integration of the TAP acquisition to further build out its technology stack. Profitability is expected to remain stable, with a target operating margin band of 14.75%–15.75%.
Source: BSE
