Mphasis' Q2 FY 2025-26 Quarterly Results

Result Summary

• Mphasis Ltd reported a 4.3% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 10.6%.
• Its expenses for the quarter were up by 4.6% QoQ and 10.5% YoY.
• The net profit increased 6.2% QoQ and increased 10.8% YoY.
• The earnings per share (EPS) of Mphasis Ltd stood at 24.54 during Q2 FY 2025-26.

Financial Statments for Q2 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 prominent IT services company headquartered in India, known for providing various solutions in the information technology and business process outsourcing sectors. The company primarily focuses on cloud and cognitive services, digital transformation, and cyber security solutions, catering to a wide range of industries including banking, financial services, and insurance (BFSI), healthcare, and retail. Mphasis has established a strong presence in both domestic and international markets, with a significant client base in North America. The company is recognized for its innovative approach to integrating advanced technologies such as artificial intelligence and machine learning into its service offerings. While specific recent major developments are not provided, Mphasis is known for continuously expanding its technological capabilities and enhancing its service portfolio to maintain its competitive edge in the industry.

Revenue

In Q2FY26, Mphasis Ltd reported a total income of ₹3976.55 crores, reflecting a quarter-over-quarter (QoQ) increase of 4.3% from ₹3813.44 crores in Q1FY26 and a year-over-year (YoY) growth of 10.6% from ₹3594.90 crores in Q2FY25. This consistent growth in revenue underscores the company's ability to expand its market reach and capitalize on its services. The growth rates indicate a steady upward trend in revenue generation, potentially driven by increased demand for the company's offerings or successful client engagements. The financial data suggests a robust revenue performance compared to the previous quarters and the corresponding quarter of the previous year, highlighting the company's resilience in its operational sectors.

Profitability

Mphasis Ltd's profitability metrics for Q2FY26 show a positive trajectory. The profit before tax (PBT) was reported at ₹624.78 crores, which represents a QoQ increase of 2.4% from ₹610.07 crores in Q1FY26 and a YoY growth of 11.1% from ₹562.57 crores in Q2FY25. After accounting for taxes, the profit after tax (PAT) stands at ₹469.07 crores, marking a 6.2% QoQ increase from ₹441.70 crores and a 10.8% YoY increase from ₹423.33 crores. Earnings per share (EPS) also rose to ₹24.54, up 6.1% QoQ from ₹23.14 and 10.6% YoY from ₹22.18. These figures indicate an improvement in the company's profitability over the analyzed periods, possibly due to effective cost management or revenue growth outpacing expense increases.

Operating Metrics

The financial data for Mphasis Ltd reveals that total expenses in Q2FY26 amounted to ₹3351.77 crores, with a QoQ increase of 4.6% from ₹3203.36 crores in Q1FY26 and a YoY rise of 10.5% from ₹3032.32 crores in Q2FY25. This increase in expenses aligns closely with the revenue growth, suggesting that the company maintained a stable cost structure relative to its income. Additionally, the tax expenses were reduced by 7.5% QoQ, from ₹168.37 crores in Q1FY26 to ₹155.71 crores in Q2FY26, while showing an 11.8% YoY increase from ₹139.24 crores in Q2FY25. The reduction in tax expenses QoQ may reflect tax optimizations or changes in tax regulations. The overall operating metrics indicate controlled expense management in relation to revenue growth, contributing to the company's financial performance during the quarter.