Mphasis Q2 Results: First half deal wins surpass all of FY25, pipeline at record

Shares of Mphasis Ltd. are in focus on Friday, October 31, after the company reported steady second quarter earnings on Thursday night.

Its revenue in US Dollar terms increased by 1.7%, while revenue in constant currency terms was up 2% sequentially.

The company's earnings before interest tax (EBIT) margin remained unchanged from the previous quarter at 15.3%.

Mphasis said it expects industry growth to be more than 2x, on the back of its performance in the first half of this fiscal and also the steady conversion of strong total contract value (TCV) wins to revenue. It has targeted operating EBIT margin to be between the  14.75% - 15.75% band.

Deal wins for the quarter stood at $528 million, taking the total contract value in the first half of FY26 to $1.28 billion, which is more than the entire FY25 TCV of $1.26 billion.

Order pipeline was at record levels, witnessing a 9% sequential growth and 97% increase from the previous year. As much as 69% of the order pipeline was AI-led.

The company's profit after tax (PAT) increased to ₹469 crore compared to 441.7 crore in the previous quarter and ₹423.3 crore in the same period last year.

Its rupee revenue was at ₹3,901.9 crore in the September quarter, compared to ₹3,732.4 crore in the previous one and ₹3,536.1 crore in the second quarter last year.

Mphasis reported its highest-ever revenue and earnings per share (EPS) growth, led by the insurance and the technology, media, telecommunications (TMT) verticals.

Americas grew sequentially by 2.1%, led by ramp ups in recent large deals.

The momentum of the banking and financial services (BFS) continued with 13.8% growth. BFS Direct grew 17.3% from the previous year.

The logistics and transportation vertical is expecting sequential growth from the third quarter.

Mphasis shares ended the previous session 0.7% up at ₹2,896 apiece. The stock has gained 9.1% in the past month and 17.3% in the last six months.

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