Mphasis Q3 earnings: Net profit declines QoQ, EBIT beats expectations

Mphasis Ltd reported a mixed set of numbers for the December quarter (Q3FY26), with profit declining sequentially and missing market expectations, even as revenue growth remained steady and margins broadly held up.

The IT services firm posted a net profit of ₹442 crore in Q3FY26, down 5.7% quarter-on-quarter from ₹469 crore in the September quarter. The profit figure also fell short of the CNBC-TV18 poll estimate of ₹477 crore, reflecting pressure from higher costs and the impact of exceptional items during the quarter.

Revenue from operations rose 2.6% sequentially to ₹4,002 crore in Q3FY26, compared with ₹3,901 crore in the previous quarter, broadly in line with expectations but marginally below the CNBC-TV18 poll of ₹4,016 crore. The company said revenue growth was supported by continued deal wins and traction across key verticals.

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At the operating level, earnings before interest and tax (EBIT) increased 2.1% quarter-on-quarter to ₹608.7 crore from ₹596 crore in Q2FY26. The EBIT figure was slightly ahead of the CNBC-TV18 poll estimate of ₹607 crore. EBIT margin came in at 15.2%, marginally lower than 15.3% in the previous quarter, but above the street expectation of 15%.

Mphasis said it recorded new total contract value (TCV) wins of $428 million during the quarter, while management reiterated confidence in growth momentum, supported by its AI-led NeoIP platform and strong demand in banking, financial services and insurance (BFSI) and insurance verticals.

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Shares of the company ended 0.04% higher at ₹2,800 ahead of the results announcement on Thursday. The stock has dropped 3.01% in the past one month.