5 days ago
Mphasis Q1 profit up 8.4% on-year on strong BFSI, TMT show
Blackstone-backed mid-sized IT firm Mphasis on Friday reported a first-quarter net profit of Rs 442 crore, up 8.4% from a year earlier by 1.1% lower for the quarter ended June 30 rose 9.2% YoY to Rs 3,732 crore, lifted by strong performance in its verticals serving the banking, financial services & insurance (BFSI) and technology, media & telecommunications sectors, despite a 50% fall in logistics & transportation business. On year, the revenue was almost the growth was boosted by the Americas, which constitutes more than 80% of revenue share, and India, led by ramp ups in recent large reported strong deal wins. Quarterly total contract value (TCV) at $760 million was the highest on record and up 138% from a year earlier. The management said 68% of these were the four large deals won in the June quarter, three were $100 million contracts and one was $50 million. Order from It saw a 47% increase in the banking and financial services (BFS) segment from a year earlier. Non-BFS orders rose 108%.Operating margin was flat sequentially at 15.3% and a tad higher from 15% a year an investor presentation, Mphasis CEO and managing director Nitin Rakesh and chief financial officer Aravind Viswanathan highlighted continued volatility and lack of tailwinds in the market, with decision cycles remaining elongated due to uncertainty and geopolitics and cyber still dominating Bengaluru-headquartered firm expects its growth in the congoing fiscal 2026 to be two times faster than the industry, 'on the back of our Q1 performance and steady conversion of TCV to revenue', according to the investor presentation. It targets an operating (EBIT) margin of 14.75-15.75% for the fiscal experts estimate the IT sector to grow around 3-5% this fiscal said its wholly owned US subsidiary, Mphasis Corporation, acquired a 26% stake through preferred shares in Bengaluru-based Aokah, a platform-as-a-service company designed to help enterprises set up, scale, and optimise global capability shares ended 1.3% lower at Rs 2,619.55 on the BSE Friday.
