Mphasis (MPHL IN) – Q2FY27 Result Update – Growth outlook strengthens but weighs on margins – BUY
Published on 06 Nov 2026
MPHL delivered a healthy Q2FY27 performance, with revenue growth of 3.3% QoQ CC, ahead of our estimate of 3.0% (ex. Logistics 3.8% QoQ growth), marking its strongest sequential growth in three years. Growth was led by BFS (+4.4% QoQ) and TMT (+9.9% QoQ), while Insurance also returned to sequential growth (+1.8%). BPO (+6.6%) and APPS (+3.5%) sustained momentum, partly offset by weakness in ITO (-4.9%) and Logistics & Transportation (-12.0%). Deal momentum remained robust, with net new TCV of US$466mn (66% AI-led), taking TTM TCV to US$1.8bn. The pipeline reached a record high, up 23% YoY, with 71% AI-led, while shorter-cycle deals (below US$20mn) grew 26% on a TTM basis, supporting near-term revenue conversion. We value the stock at a PE of 21x Sept. 28 earnings to arrive at revised TP of INR 2,960 (earlier 2,920) and retain our “BUY” rating.
