Mphasis lifts Q3 revenue as AI deals top USD $428m

Mphasis reported revenue growth and higher earnings per share for the third quarter of FY26, alongside new deal wins totalling USD $428 million in contract value.

Revenue rose 2.6% quarter on quarter and 12.4% year on year on a reported basis for the quarter ended 31 December 2025. In constant currency, revenue grew 1.5% quarter on quarter and 7.4% year on year. Direct revenue increased 3.1% quarter on quarter and 15.9% year on year on a reported basis, while constant currency growth was 1.9% quarter on quarter and 9.6% year on year.

Operating margin came in at 15.2%, and net profit before exceptional items rose 9.5% year on year to INR 4,687 million, though it fell 0.1% from the prior quarter. The quarter included an exceptional item of INR 355 million related to changes in labour laws. Earnings per share before the exceptional item increased 9.0% year on year to INR 24.6, down 0.2% from the prior quarter.

Management attributed momentum to the demand for AI-driven projects.

"We are pleased with our continued progress on all metrics around growth across the business. Our Mphasis NeoIP, Artificial Intelligence (AI) platform, is supersizing our pipeline and deals, paving the way for faster revenue growth and continued gains in wallet share driven wins," said Nitin Rakesh, CEO and Managing Director, Mphasis.

Deal Activity

During the quarter, Mphasis signed new business worth USD $428 million in total contract value.

• A large US bank selected Mphasis for a multi-year programme covering financial crimes and anti-money laundering work, including enterprise data modernisation and "Agentic AI-led intelligence".

• A healthcare company chose the Mphasis Javelina platform for a core administration modernisation covering billing, data flows, self-service, and payment processing.

• Two banking selections focused on mortgages and remittances: a global bank named Mphasis, a strategic partner for mortgage fulfilment services, and another large bank engaged the company for remittance programme work, ramping up "autonomous squads" across design, implementation, testing, and deployment.

Certification and Recognition

Mphasis received ISO 42001:2023 certification from TÜV SÜD for Artificial Intelligence Management Systems and was recognised in several industry reports across banking IT services, payments, ServiceNow, and insurance technology. The company also won the Indian Social Impact Awards 2025 for Most Impactful Integrated CSR Initiative of the Year.

AI Focus

Mphasis positions itself as an AI-led, platform-driven technology services provider and continues investments in its Neo series, including the NeoIP platform. Management linked NeoIP to larger deals and emphasised AI-related work across banking, healthcare, and mortgage verticals.

In the coming quarters, deal conversion and margin performance remain priorities as Mphasis continues to secure new contracts across its core sectors.