Mphasis' Q1 FY 2025-26 Quarterly Results

Result Summary

• Mphasis Ltd reported a 9.7% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 9.1%.
• Its expenses for the quarter were up by 8.4% QoQ and 8.3% YoY.
• The net profit increased 12.3% QoQ and increased 9.2% YoY.
• The earnings per share (EPS) of Mphasis Ltd stood at 23.1 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Mphasis Ltd is a leading information technology services company that provides a range of services including application development and maintenance, infrastructure outsourcing services, and business process outsourcing solutions. Mphasis operates in the IT and IT-enabled services sector and has a significant presence in the banking, financial services, and insurance domains. The company is known for its strong capabilities in cloud and cognitive services, as well as its focus on digital transformation strategies for its clients. While specific recent developments are not detailed here, Mphasis has consistently been involved in strategic partnerships and innovations to enhance its service offerings, as is typical in the fast-evolving technology industry.

Revenue

In the first quarter of FY26, Mphasis Ltd reported a total income of ₹3813.44 crores, marking a quarter-over-quarter (QoQ) growth of 9.7% from ₹3476.23 crores in Q4FY25, and a year-over-year (YoY) increase of 9.1% from ₹3496.01 crores in Q1FY25. The significant growth in total income reflects the company's ability to expand its revenue base consistently. This increase in revenue could be attributed to various factors, including new client acquisitions, expansion of existing client engagements, or an increased market demand for its services. The consistent growth in revenue over the periods analyzed underscores Mphasis's competitive standing in the IT services industry.

Profitability

For Q1FY26, Mphasis Ltd recorded a profit before tax of ₹610.07 crores, which represents a QoQ rise of 16.8% from the ₹522.31 crores reported in Q4FY25 and a YoY growth of 13.5% from ₹537.32 crores in Q1FY25. The company's profit after tax for the same period was ₹441.70 crores, increasing by 12.3% QoQ from ₹393.22 crores in the previous quarter, and by 9.2% YoY from ₹404.51 crores in Q1FY25. The effective tax for Q1FY26 stood at ₹168.37 crores, showing a substantial QoQ increase of 30.4% and a YoY rise of 26.8%. This profitability growth aligns with the upward trend in revenue, highlighting efficient cost management and operational effectiveness.

Operating Metrics

Mphasis Ltd's earnings per share (EPS) for Q1FY26 was ₹23.10, reflecting a QoQ increase of 12.1% from ₹20.60 in Q4FY25, and a YoY rise of 8.5% from ₹21.30 in Q1FY25. The total expenses for the period were ₹3203.36 crores, up by 8.4% QoQ from ₹2953.93 crores, and a YoY increase of 8.3% from ₹2958.68 crores. The growth in expenses is consistent with the increase in revenue, suggesting that the company is investing in resources to support its operational expansion. The financial metrics indicate a balanced approach to managing costs while enhancing profitability, contributing to the overall financial health of Mphasis Ltd.