Mphasis Ltd. shares leaped 8% on Friday after the midcap IT exporter clocked its fastest sequential constant-currency revenue expansion in years.
Traders piled into the stock following an across-the-board operational beat in the September quarter. Constant-currency revenue expanded 3.3% sequentially and 9.7% from a year earlier, prompting leadership to signal that full-year FY27 top-line growth will land at the upper bound of its high-single to low-double-digit target band. Revenue in dollar terms rose 3.2% to $486 million from $471 million in the preceding three months, while rupee revenue climbed 4.5% to ₹4,580.9 crore.
Net profit climbed 14.6% quarter-on-quarter to ₹561.1 crore. But beneath the headline bottom line lay a sharp non-operating boost: other income vaulted 78% to ₹147.2 crore from ₹82.9 crore in the prior quarter. Operating profit kept pace with top-line growth as earnings before interest and tax (EBIT) grew 4.5% sequentially to ₹677.4 crore. EBIT margin held flat at 14.8%—hugging the lower boundary of the company's unchanged annual target corridor of 14.75% to 15.75%.
| Metric | Q2 FY27 | Q1 FY27 | QoQ Change (%) | YoY Change (%) |\n| :--- | :--- | :--- | :--- | :--- |\n| Rupee Revenue | ₹4,580.9 Cr | ₹4,384.0 Cr | +4.5% | — |\n| Dollar Revenue | $486.0 M | $471.0 M | +3.2% | — |\n| EBIT | ₹677.4 Cr | ₹648.1 Cr | +4.5% | — |\n| EBIT Margin | 14.80% | 14.80% | Flat | — |\n| Net Profit | ₹561.1 Cr | ₹489.5 Cr | +14.6% | — |\n| Total Contract Value | $466 M | $461 M | +1.1% | — |
Deal activity showed steady institutional uptake. Total contract value (TCV) closed at $466 million for the quarter, up from $461 million in the previous three-month period, anchored by five large contract wins. Deal momentum in smaller tickets gathered pace as well—contracts valued below $20 million surged 26% over the trailing 12-month period, during which overall TCV reached $1.8 billion.
Artificial intelligence workloads formed the core of new bookings. Two-thirds of the quarter's contract value—roughly 66%—came from AI-led engagements. The broader pipeline hit a fresh record, climbing 4.4% from the prior quarter and 23% over the prior year, with AI mandates representing 71% of total enterprise bids.
Cash conversion remains the final operational test. Mphasis reiterated an operational cash flow conversion target of 80% of net income for the fiscal year, with balance-sheet metrics expected to normalise fully in FY28 as second-half revenue momentum carries through.