1. At a Glance – Blink and You’ll Miss the Boredom (but Numbers Don’t Lie)
Mphasis is currently sitting at a market capitalisation of ₹53,705 Cr, with the stock trading around ₹2,810. Over the last 3 months, the return is a very underwhelming -0.31%, which is basically the market saying, “haan bhai, dekha… but meh.” Dividend yield is a respectable 2.03%, ROCE stands tall at 22.7%, ROE at 18.2%, and the company is priced at a P/E of ~29.4x—not cheap, not obscene, just politely expensive.
Now zoom into the latest quarter (Q3 FY26 – Dec 2025). Revenue came in at ₹4,003 Cr, up 12.4% YoY. PAT stood at ₹442 Cr, growing 9.38% YoY. Operating margins hovered at ~19%, which in IT land is the equivalent of wearing crisp ironed clothes—nothing flashy, but signals discipline.
Debt? ₹1,979 Cr, with Debt/Equity at 0.21, so no heart attacks yet. Promoters? Down to 30.6% after Blackstone’s chunky sell-down—more on that drama later. EPS for the quarter is ₹23.21, which annualises neatly (hold that thought, EPS police incoming later).
Bottom line: this is not a meme stock, not a rocket, not a fallen angel. It’s that studious kid in class who keeps scoring 75–80% every year. Question is—does consistency excite you, or bore you to death?
2. Introduction – The Middle Child of Indian IT
Mphasis is that mid-sized IT company which has survived every phase of Indian IT history without becoming either a superstar or a cautionary tale. Founded long before “cloud-native” became a buzzword, it went through the EDS → HP era, and then in 2016, got adopted by Blackstone, the PE giant that loves predictable cash flows more than your CA loves depreciation schedules.
Since then, Mphasis has played a very specific game. Not chasing vanity growth. Not competing head-on with TCS or Infosys. Instead, it parked itself comfortably in BFSI-heavy, North America–centric, application-led services, quietly compounding revenue at ~8–10% and profits at ~7–11% over long periods.
Is it sexy? No.
Is it stable? Very much yes.
In FY25, total sales were ₹14,230 Cr, and TTM sales are ₹15,347 Cr. PAT TTM stands at ₹1,799 Cr, with EPS ₹94.57. Dividend payout ratio is a juicy ~64%, which explains why long-term shareholders treat this stock like a fixed deposit that occasionally
jogs.
But here’s the twist. In the last 6–8 quarters, Mphasis has been screaming “AI! AI! AI!” louder than a startup pitch deck. New AI BU, large TCV wins, proactive deal closures, and an attempt to convince the market that it’s no longer just a legacy BFSI coder-for-hire.
So the real question: is this a genuine transformation… or just IT companies doing PowerPoint cosplay?
3. Business Model – WTF Do They Even Do?
Let’s simplify this before your eyes glaze over.
Mphasis sells IT services, mainly to banks, insurers, and financial institutions, mostly in North America. That’s it. Everything else is garnish.
Revenue Split (Q2 FY23 reference, structure unchanged):
- Application Services – 67.5%
- BPO – 20.5%
- ITO – 12%
Translation: they write, maintain, modernise, and migrate applications that banks are too scared to touch themselves.
Vertical Exposure (FY23):
- BFSI – 54%
- Insurance – 8%
- TMT – 13%
- Logistics & Transport – 13%
- Others – 12%
Yes, BFSI is more than half the business. Yes, that’s concentration risk. But BFSI clients are sticky, pay regularly, and don’t randomly cancel projects because a VC didn’t wire money.
Geographically, America contributes ~82% of revenue. Which means Mphasis wakes up every morning praying to the US Fed, the US mortgage market, and US CIO budgets.
Now comes the “new-age” masala:
- Cloud
- Cognitive
- AI
- Cybersecurity
- Blockchain
- DevOps
Are these real? Yes.
Are they 100% of revenue? No.
Are they growing faster than legacy? Yes.
Mphasis is basically saying: “We’ll keep milking the old cow, but we’re also raising a new calf called AI.” Fair strategy. Risk? Execution.
Would you trust
