Mphasis reports strong Q2 FY26 revenue, AI-led growth, strategic acquisitions

Mphasis Limited reported gross revenue of $445 million for Q2 FY26, a 5.3% quarter-on-quarter and 11.4% year-on-year increase. Net profit grew 6.2% quarter-on-quarter and 10.8% year-on-year to ₹4,691 million. Earnings per share rose 10.2% year-on-year to ₹24.7. The company's direct revenue grew 5.5% quarter-on-quarter and 13.4% year-on-year. The company recorded new total contract value (TCV) wins of $528 million in Direct, with 87% from new-gen services. The overall pipeline is 69% AI-led, reflecting a 9% quarter-on-quarter and 97% year-on-year growth.

Key growth drivers include banking and financial services (BFS) revenue, up 17.3% year-on-year in Direct, and continued momentum in insurance and TMT verticals, both experiencing over 25% year-on-year growth in Direct. Mphasis also launched its NeoIP™ Agentic Platform, a unified AI platform, and expects over 2X industry growth, targeting an operating (EBIT) margin of 14.75%–15.75%.

Strategic acquisitions contributed to this growth, including the cybersecurity business of EDZ systems, the software testing business of tsQs Inc., and the digital transformation management business of Locate Software Inc., with total consideration values of $17.00 million, $27.00 million, and $8.50 million respectively. Additionally, Mphasis acquired a 26% equity stake in Aokah Inc. for $4 million.