Mphasis Limited reported strong performance for Q4 FY2026, marked by a 7.1% YoY revenue growth in constant currency and a record annual net new TCV of $2.12 billion. The company continues to capitalize on its AI-first strategy, with 69% of the pipeline now being AI-led. Management emphasized a shift toward Agentic AI and enterprise decision transformation, supported by the strategic acquisition of Theory and Practice and its Continuum AI platform.
Financial Performance Overview
Mphasis delivered solid financial results for the quarter ended March 31, 2026. Q4 revenue reached $463 million, reflecting a 2.5% sequential growth and 7.1% YoY growth in constant currency. For the full fiscal year, the company achieved revenue growth of 6.7% in constant currency. The EBIT margin for the quarter stood at 15.4%, with an annual margin of 15.3%, maintaining performance within the company’s stated target band of 14.75% to 15.75%.
Record Pipeline and AI Adoption
The company achieved a record annual net new TCV of $2.12 billion, representing a 68% increase YoY. Mphasis is seeing a structural shift in demand, as 69% of its pipeline is now AI-led. Large deals (TCV > $20 million) grew by 40%, underscoring the success of its NeoIP platform and its strategy to transition from experimentation to scaled AI deployment.
Strategic Acquisitions and Future Focus
To bolster its enterprise decision transformation capabilities, Mphasis acquired Theory and Practice, integrating its Continuum AI platform. This move extends Mphasis’s capabilities beyond systems modernization into real-time decision intelligence across supply chain, pricing, and marketing domains. Management highlighted that 80% of AI-driven transformation occurs outside the IT function, and the company is positioning itself to lead this shift through business-centric AI solutions.
Vertical Highlights and Outlook
The BFS (Banking and Financial Services) vertical remains a primary growth driver, reporting 15% YoY growth in Q4. While the TMT sector experienced some near-term softness, the company remains confident in sustaining high single-digit to low double-digit growth in FY27. The Board has recommended a dividend of INR 62 per share for the fiscal year, reflecting confidence in the company’s ongoing momentum and disciplined capital allocation.
Source: BSE
