Mphasis Q2 FY26 Concall Decoded – The AI Priesthood Meets Profit Nirvana

1. Opening Hook

Just when tech Twitter was busy hallucinating about “AI gods,” Mphasis quietly dropped NeoIP — an AI platform that promises to “continuously transform enterprises.” Somewhere, ChatGPT sighed in envy. CEO Nitin Rakesh basically said, “We built this before AI was cool.” He’s not wrong — their NEXT Labs has been tinkering with LLMs since 2014.

As the Bhagavad Gita reminds us, “You have the right to work, but not to the fruits thereof.” Mphasis clearly disagrees — they’re collecting both the karma and the cash. Stick around; the sermon on “AI enlightenment through margin discipline” only gets better.

2. At a Glance

Revenue up 6% YoY: CEO calls it “highest ever”; Excel calls it “a good day.”
EBIT margin 15.3%: Holding steady — CFO says “disciplined execution,” we heard “tight yoga.”
EPS ₹24.7, up 10.2% YoY: Shareholders mildly impressed.
TCV $528 Mn: Two quarters running — clearly they’ve found the cheat code.
BFSI up 13.8% YoY: Even without ATMs dispensing joy.
Pipeline up 97% YoY: CFO claims “AI-led.” Translation: everyone wants a chatbot.

3. Management’s Key Commentary

“We built our AI journey a decade ago; others are just discovering it.”
(Translation: We were nerds before it was profitable 😏)

“NeoIP rewires enterprise DNA — it learns, adapts, and grows.”
(Sounds like Skynet but with a PowerPoint deck.)

“42% of TCV wins were AI-led.”
(The other 58% were still humans pretending to be AI.)

“Our BFSI growth at 13.8% proves resilience despite ATM business fading.”
(Who needs ATMs when you can print AI deals?)

“Our fixed-price contracts now exceed 50% of revenue.”
(Because risk looks better on the client’s balance sheet.)

“EBIT margin steady within 14.75–15.75% band.”
(Also known as the corporate version of intermittent fasting.)

“We expect growth at twice the industry rate.”
(Assumes the industry keeps napping.)

4. Numbers Decoded

Source table

Metric	Q2 FY26	YoY Change	One-Line Analysis
Revenue	$445 Mn	+6%	Highest ever, CFO smirk visible from space.
EBIT Margin	15.3%	Flat	The Zen of staying in the band.
EPS	₹24.7	+10.2%	Profits hit gym, avoided inflation.
TCV Wins	$528 Mn	+180% YoY large deal pipeline	Large deals raining; investors dancing.
Direct Business	97.5%	+7.9% YoY	Indirect business officially on vacation.
BFSI Revenue	+13.8% YoY		Still Mphasis’ sugar daddy.
Insurance & TMT Growth	+25%+ YoY		AI magic paying premiums and subscriptions.
Pipeline Growth	+97% YoY		Proof that Excel cells can dream too.

5. Analyst Questions

Kotak: “Will Q3 be strong despite furloughs?”
Nitin: “Depends on which way the corporate Santa blows.”

Investec: “Is mortgage refinance reviving?”
Nitin: “Maybe. Depends on Fed, astrology, and karma.”

Equirus: “Can TCV stay

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