Q1 2026 Mphasis Ltd Earnings Call Transcript
Key Points
- Mphasis Ltd (BOM:526299) reported its highest-ever quarterly Total Contract Value (TCV) of USD 760 million, with 68% being AI-led.
- The company has seen a significant increase in its AI-led offerings, with over 250 AI/ML models available on major cloud marketplaces.
- Mphasis Ltd (BOM:526299) achieved a 20%+ year-over-year growth in its BFS, Insurance, and TMT verticals.
- The company has successfully expanded its client base, adding new clients in various revenue categories, including $100 million-plus and $50 million-plus categories.
- Mphasis Ltd (BOM:526299) maintained a stable EBIT margin of 15.3% while continuing to invest in AI-driven growth initiatives.
- The EMEA region experienced a 15% sequential decline in constant currency terms due to a ramp-down of a global customer.
- The logistics and transportation vertical faced challenges due to customer-specific investments, impacting growth.
- There was a delay in collections from a top customer, affecting operating cash flow and increasing DSO by 9 days.
- The company's nonstrategic ATM business saw a decrease in revenue, impacting overall performance.
- Despite strong deal wins, the macroeconomic environment remains uncertain, requiring cautious execution in upcoming quarters.
Good morning, ladies and gentlemen, and thank you for joining the Mphasis Q1 FY26 earnings conference call. I am Miro, your moderator for the day. We have with us today Mr. Nitin Rakesh, CEO of Mphasis; Mr. Aravind Viswanathan, CFO; and Mr. Mani Kalangara, Head of Investor Relations.
As a reminder, the webcast linked to call invite is in the mail that the Mphasis management team will be referring to today. The same presentation is also available on the website of the Mphasis that is www.mphasis.com, in the Investors section under the Financial and Filing as well as both on BSE and NSE website. I request you to have the presentation handy. (Operator Instructions)
Please note that this conference is being recorded. Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. A detailed statement in regards to this is available in the Q1 results release that was sent out to all of you earlier.
I now hand over the
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