Mphasis Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Mphasis Ltd filed with BSE on 04 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Mphasis reported Q4 FY26 revenue of $463 million, up 2.5% quarter-on-quarter and 7.1% year-on-year in constant currency, with full-year constant currency growth of 6.7%. Management highlighted record annual net new TCV of $2.1 billion, a 38% year-on-year increase in pipeline with 69% of it AI-led, and EBIT margin of 15.4% for the quarter. The Board recommended a dividend of INR 62 per share for FY26, and management guided to high single-digit to low double-digit growth for FY27 within a stated margin band.
Numbers mentioned
Revenue: $463 Mn (Q4 FY26)
p. 6
“Q4FY26 revenue came in at $463 Mn, reflecting growth of 2.5% quarter-on-quarter and 7.1% YoY in constant currency.”
Nitin Rakesh, page 6 of the filed PDF · View the filing
Full year revenue growth: 6.7% in constant currency (FY26)
p. 6
“For the full year, revenues grew 6.7% in constant currency terms.”
Nitin Rakesh, page 6 of the filed PDF · View the filing
Direct revenue: $456 Mn (Q4 FY26)
p. 6
“Direct revenues for the quarter were $456 Mn, crossing an annualized run rate of $1.8 Bn and contributing 98.6% of total revenue.”
Nitin Rakesh, page 6 of the filed PDF · View the filing
Net new TCV: $2.1 Bn (FY26)
p. 6
“Over the past year, we achieved our highest-ever annual net new TCV of over $2.1 Bn - representing a 68% increase YoY.”
Nitin Rakesh, page 6 of the filed PDF · View the filing
Net new TCV: $407 Mn (Q4 FY26)
p. 6
“We continued this momentum in the quarter, delivering $407 Mn in net new TCV, including four large deals.”
Nitin Rakesh, page 6 of the filed PDF · View the filing
EBIT margin: 15.4% (Q4 FY26)
p. 8
“Q4FY26 EBIT margin expanded by 20 basis points sequentially to 15.4%, while full-year EBIT margin remained stable at 15.3%.”
Nitin Rakesh, page 8 of the filed PDF · View the filing
Operating profit: INR 6,525 million (Q4 FY26)
p. 8
“Operating profit for the quarter grew 7.2% QoQ and 15.0% YoY to INR 6,525 million.”
Nitin Rakesh, page 8 of the filed PDF · View the filing
EPS: INR 26.7 (Q4 FY26)
p. 8
“EPS increased 8.6% sequentially and 13.7% YoY to INR 26.7.”
Nitin Rakesh, page 8 of the filed PDF · View the filing
Operating cash flow: $21 Mn (Q4 FY26)
p. 8
“Operating cash flow for the quarter was $21 Mn.”
Nitin Rakesh, page 8 of the filed PDF · View the filing
Dividend: INR 62 per share (FY26)
p. 8
“I am also pleased to share that the Board has recommended a dividend of INR 62 per share for FY26.”
Nitin Rakesh, page 8 of the filed PDF · View the filing
Pipeline growth: 38% YoY (FY26)
p. 6
“Overall pipeline increased 38% YoY, with strong momentum across verticals.”
Nitin Rakesh, page 6 of the filed PDF · View the filing
AI-led pipeline share: 69%
p. 6
“Today, 69% of our pipeline is AI-led, reflecting a structural shift in client demand toward AI-driven transformation.”
Nitin Rakesh, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — high single-digit to low double-digit growth · FY27
stated conditionally by Nitin Rakesh
p. 9
“Despite ongoing macro uncertainty, we expect to deliver high single-digit to low double-digit growth, supported by disciplined execution and increasing demand for AI-led transformation in FY27.”
Nitin Rakesh, page 9 of the filed PDF · View the filing
EBIT margin band — 14.75% to 15.75% · FY27
stated firmly by Nitin Rakesh
p. 9
“we remain committed to operating within our target band of 14.75% to 15.75%, while continuing to invest in platforms and capabilities.”
Nitin Rakesh, page 9 of the filed PDF · View the filing
Operating cash flow to net income conversion — approximately 80% · FY27
stated firmly by Nitin Rakesh
p. 9
“We also expect to maintain an operating cash flow to net income conversion ratio of approximat ely 80%.”
Nitin Rakesh, page 9 of the filed PDF · View the filing
Logistics vertical recovery — FY27
stated as an aspiration by Nitin Rakesh
p. 13
“And we do expect this to gradually recover through FY27.”
Nitin Rakesh, page 13 of the filed PDF · View the filing
TMT segment growth — coming quarters
stated conditionally by Nitin Rakesh
p. 7
“We expect this segment to return to sequential growth in the coming quarters.”
Nitin Rakesh, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said tech budgets have not been cut broadly, spend is being reprioritized toward AI programs with clear ROI, and business functions are willing to fund AI outside traditional tech budgets.
Answered by Nitin Rakesh
Asked by Nitin Padmanabhan: How are client budgets shifting to fund AI-led transformation outside of IT, and what is the top 100 enterprises' thinking?
p. 9
“What we are seeing is reprioritization or prioritization, where spend is continuing to shift towards AI-led programs with clear ROI.”
Nitin Rakesh, page 9 of the filed PDF · View the filing
CFO explained DSO improved by a day, contract assets moved into current receivables as milestones were accepted, and adjusted DSO would be lower excluding a temporary remittance delay.
Answered by Aravind Viswanathan
Asked by Nitin Padmanabhan: How should investors think about DSO and free cash flow conversion given growth in BFSI and lower conversion dynamics?
p. 10
“DSO improved by a day. You've seen current receivables go up, but you've also seen contract assets come down, which means basically the unbilled on fixed price prior to milestone has actually moved to a situation, where the customers have accepted the milestone.”
Aravind Viswanathan, page 10 of the filed PDF · View the filing
Management pointed to the NeoIP platform and years of prior investment enabling faster time to market and deeper business transformation beyond IT modernization.
Answered by Nitin Rakesh
Asked by Sandeep Shah: How does Mphasis differentiate in modernization deals given rising competition from other vendors touting AI capability?
p. 11
“the biggest differentiation really comes out of the stack that we've built and continued investment in deploying that stack at enterprise clients and delivering value that comes out of that stack.”
Nitin Rakesh, page 11 of the filed PDF · View the filing
CFO said the hedge book runs for four more quarters, so hedge loss headwinds would persist through H1 FY27 before tapering.
Answered by Aravind Viswanathan
Asked by Sandeep Shah: How should the hedge losses affecting EBIT margin be modeled going forward given rupee depreciation?
p. 12
“you will see continued impact of hedge losses in at least the first half of FY27 and then it will kind of taper down a bit.”
Aravind Viswanathan, page 12 of the filed PDF · View the filing
Management expressed confidence based on strong pipeline buildup in BFS and stable large client segment performance.
Answered by Nitin Rakesh
Asked by Vibhor Singhal: Can the strong BFSI growth momentum be sustained into FY27?
p. 13
“for us to be able to grow to the aspiration and the guidance that we are showing, we have to make sure that BFS and Insurance both continue to play a role there. And hence, we are fairly confident that we'll be able to sustain the growth momentum.”
Nitin Rakesh, page 13 of the filed PDF · View the filing
CFO attributed this to a deliberate shift toward larger annuity deals requiring upfront working capital investment such as year-one savings commitments to clients.
Answered by Aravind Viswanathan
Asked by Dipesh Mehta: Why has OCF to net income conversion fallen from historical levels above 100% to a targeted 80%?
p. 15
“as we kind of pivoted to a lot more annuity, large deals with savings that we are passing on to clients, that has necessitated certain amount of investments from a working capital standpoint, where customers ask for year one savings and things like that.”
Aravind Viswanathan, page 15 of the filed PDF · View the filing
Management said the environment is the same as peers but attributed differences to the ability to execute value-based deals and prior investment in large-deal capability.
Answered by Nitin Rakesh
Asked by Abhishek Shindadkar: Why is Mphasis not seeing the project deferrals that peers have reported?
p. 16
“the ability to drive value and the ability to do value-based deals, while having the capability and the competency, both from a people's standpoint and from a tech standpoint becomes important.”
Nitin Rakesh, page 16 of the filed PDF · View the filing
Management said pass-through of productivity gains to clients is measured and structured, with a portion reinvested into additional automation, and cited wallet share gains in top banking accounts.
Answered by Nitin Rakesh
Asked by Rishi Jhunjhunwala: Are large BFSI clients pushing for productivity pass-backs, and is Mphasis gaining wallet share from this dynamic?
p. 17
“We've seen this in top banking accounts already, where we've gained wallet share, because the delivery of productivity through our teams, through a commercial construct that we believe worked for both, was superior to our peers.”
Nitin Rakesh, page 17 of the filed PDF · View the filing
Risks flagged
TMT vertical softness from project completions and delayed decision cycles linked to macro and geopolitical uncertainty
p. 7
“The TMT vertical saw some near-term softness due to project completions and delayed decision cycles linked to macro and geopolitical uncertainty.”
Nitin Rakesh, page 7 of the filed PDF · View the filing
Continued rupee-hedging losses expected to weigh on reported margins in H1 FY27
p. 12
“you will see continued impact of hedge losses in at least the first half of FY27 and then it will kind of taper down a bit.”
Aravind Viswanathan, page 12 of the filed PDF · View the filing
Oil price sensitivity for transportation and airline clients amid geopolitical tensions
p. 14
“we're keeping an eye on what happens to oil prices purely based on the sensitivities in transportation and airlines.”
Nitin Rakesh, page 14 of the filed PDF · View the filing
Ongoing macroeconomic uncertainty affecting growth outlook
p. 9
“Despite ongoing macro uncertainty, we expect to deliver high single-digit to low double-digit growth, supported by disciplined execution and increasing demand for AI-led transformation in FY27.”
Nitin Rakesh, page 9 of the filed PDF · View the filing
Industry-wide pressure from productivity passbacks and AI deflation on commercial models
p. 12
“a lot of the commentary in the sector has been focused a lot on things like productivity passbacks and AI deflation.”
Nitin Rakesh, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.