1. Opening Hook
January 2026 began with markets debating rate cuts, AI replacing jobs, and IT budgets allegedly “tight.”
Naturally, Mphasis showed up saying: pipeline is booming, AI is scaling, margins are calm.
While peers are still explaining why demand is “green shoots but distant,” Mphasis is busy launching platforms, stacking agentic AI everywhere, and casually doubling TCV.
The CEO basically said scale is overrated, outcomes matter, and humans plus bots are the new billing unit.
Traditional IT services are shrinking, but Mphasis claims it’s standing exactly where spending is shifting.
NeoIP is the hero of the quarter, BFSI is printing, and management sounds almost… relaxed.
Read on. It gets more interesting once the numbers start talking and the caveats sneak in wearing optimism.
2. At a Glance
- Revenue $451m – Seasonally weak quarter, still refused to be weak.
- CC growth 7.4% YoY – Not flashy, but steady beats dramatic excuses.
- Net new TCV $428m – Deal wins doing cardio while revenues jog.
- LTM TCV $2.1bn – Doubled in a year, management won’t stop reminding you.
- EBIT margin 15.2% – Right in the comfort band, no heroics attempted.
- Pipeline +66% YoY – AI doing the heavy lifting, humans taking
- credit.
3. Management’s Key Commentary
“Size and scale is no longer a disproportionate asset.”
(Translation: The big boys can’t bully us anymore 😏)
“Clients are recalibrating managed services towards outcomes.”
(Translation: Fewer people, more bots, same invoice ambition)
“NeoIP enables enterprises to start anywhere and scale everywhere.”
(Translation: Wherever you enter, we upsell later)
“69% of our pipeline is AI-led.”
(Translation: If it doesn’t say AI, it doesn’t sell)
“We are not seeing any AI deflation impact.”
(Translation: Don’t worry, pricing pressure hasn’t hit us… yet)
“Margins will remain within 14.75%–15.75%.”
(Translation: Growth yes, margin adventure no 😐)
4. Numbers Decoded
| Metric | Q3 FY26 |
|---|---|
| Revenue | $451m |
| QoQ Growth | +1.5% |
| YoY CC Growth | +7.4% |
| Net New TCV | $428m |
| LTM TCV | $2.1bn |
| EBIT Margin | 15.2% |
| DSO | 91 days |
- TCV is sprinting, revenue is jogging — conversion lag still real.
- Margins are protected like family
