News ArticleMphasis Posts 11.3% Year-on-Year Revenue Growth in Q2 FY27 Led by AI-Driven Modernization and Expanding Client Base
Company reports $466 million quarterly TCV with 66% from AI-led deals and continues broad-based growth across BFS, Insurance, and TMT sectors
Mphasis Limited announced its financial results for the quarter ended September 30, 2026, highlighting a revenue growth driven by AI-led modernization deals, a strong $466 million quarterly TCV with 66% AI-led wins, and expansion in key client segments across Banking, Financial Services, and Technology sectors.
Mphasis Limited
Investor Presentation
Mphasis Limited reported a significant revenue increase in the quarter ended September 30, 2026, underpinned by a robust pipeline of AI-led deals and strong client engagement across verticals including banking, insurance, and technology.
The company achieved a total contract value (TCV) win of $466 million for Q2 FY27, with 66% of these wins driven by artificial intelligence initiatives. Over the trailing twelve months, the TCV reached $1.8 billion, supported by multiple large and smaller deal wins.
Revenue in Q2 FY27 grew 11.3% year-on-year and 3.5% quarter-on-quarter on a direct basis. The Americas and Rest of World regions posted strong sequential growth, while key delivery segments APPS and BPO witnessed growth propelled by AI-led modernization deals and new client acquisitions.
Vertical performance highlights include Banking and Financial Services growing 15.0% year-on-year and 4.5% quarter-on-quarter, Insurance recording 14.7% year-on-year growth, and Technology, Media & Telecom (TMT) achieving 14.5% year-on-year and 10.9% quarter-on-quarter growth. Healthcare within the Others segment continues to drive growth.
Mphasis's client pyramid expanded, with notable revenue increases from top clients. Specifically, the top 1-5 clients grew 15.1% year-on-year with quarterly growth of 4.1%, indicative of deepening client relationships and larger deal sizes.
Operating margins remained stable at 14.8% in Q2 FY27, and the company reported earnings per share of 29.4 INR. The normalized cash flow generation for the quarter was $34 million after adjusting for remittances totaling $39.5 million received post-quarter end.
Highlights
- $466 million total contract value wins in Q2 FY27, 66% driven by AI-led deals
- 11.3% year-on-year and 3.5% quarter-on-quarter revenue growth in Q2 FY27
- Banking and Financial Services vertical grew 15.0% year-on-year
- Insurance vertical grew 14.7% year-on-year; TMT vertical grew 14.5% year-on-year
- Top 1-5 clients grew 15.1% year-on-year in revenue
- Operating margin steady at 14.8% for the quarter, EPS at 29.4 INR
Key Data Snapshot
What happened
- Mphasis reported revenue growth of 11.3% year-on-year and 3.5% quarter-on-quarter for Q2 FY27.
- The company secured $466 million in total contract value (TCV) wins during Q2 FY27, with 66% of deals being AI-led.
- Trailing twelve months TCV reached $1.8 billion, supported by large and smaller deals.
- Operating margin remained steady at 14.8% during the quarter.
Financial performance
- Segment revenue growth was broad-based, including 15.0% YoY growth in Banking & Financial Services and 14.7% YoY growth in Insurance.
- Technology, Media & Telecom vertical grew 14.5% YoY and 10.9% QoQ, driven by new deal ramp-ups.
- Earnings per share (EPS) stood at 29.4 INR for Q2 FY27.
- Normalized cash flow generation was $34 million after adjusting for remittances received post-quarter end.
Operational performance
- Strong AI-led deal momentum continued to drive growth and pipeline expansion.
- Client expansion includes significant increases in top client revenue, with the top 1-5 clients growing 15.1% YoY.
- APPS and BPO segments showed growth fueled by AI-led modernization and new deals.
- Geographically, Americas and Rest of World showed strong sequential revenue growth.
Highlights
- $466 million total contract value wins in Q2 FY27, 66% driven by AI-led deals
- 11.3% year-on-year and 3.5% quarter-on-quarter revenue growth in Q2 FY27
- Banking and Financial Services vertical grew 15.0% year-on-year
- Insurance vertical grew 14.7% year-on-year; TMT vertical grew 14.5% year-on-year
- Top 1-5 clients grew 15.1% year-on-year in revenue
- Operating margin steady at 14.8% for the quarter, EPS at 29.4 INR
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Source Information
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