Q3 2026 Mphasis Ltd Earnings Call Transcript
Key Points
- Mphasis Ltd (BOM:526299) reported strong growth in its AI-led pipeline, which grew 66% year-over-year, with 69% of the pipeline being AI-led.
- The company achieved net new TCV wins of USD 428 million, including four large deals, two of which are over $50 million.
- Mphasis Ltd (BOM:526299) launched its flagship AI platform, NeoIP, which has accelerated record deal wins and represents clients contributing more than 50% of company revenue.
- The BFSI vertical showed strong performance, with BFS growing 14.8% year-over-year and insurance growing 36% year-over-year.
- The company maintained its EBIT margin within the stated band of 14.75% to 15.75%, demonstrating margin discipline while investing for growth.
- The company's DSO increased by 2 days quarter-over-quarter, primarily due to unbilled receivables pertaining to milestone contracts.
- Despite strong TCV conversion, the revenue growth rate has not fully matched the pace of deal wins, indicating a lag in deal ramp-up.
- There is a consistent increase in debt, which was used for acquisition payouts and cash flow mismatches across geographies.
- The TMT vertical was impacted by seasonality, which affected its sequential performance.
- The company faces challenges in ensuring that AI-led transformation deals convert to revenue at the expected pace, given the complexity of such deals.
Ladies and gentlemen, and thanks for joining the Mphasis Q3 FY 2026 Earnings Conference Call. I am Govind, your moderator for the day. We have with us today Mr. Nitin Rakesh, CEO of Mphasis; Mr. Aravind Viswanathan, CFO; and Mr. Vinay Kalingara, Head of Investor Relations.
As a reminder, there is a webcast link in the call invite mail that the Mphasis management team will be referring to today. The same presentation is also available on the Mphasis website, www.mphasis.com, in the Investors section under financial and filings as well as on both the BSE and NSE websites. 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 certain risks and uncertainties. A detailed statement in this regard is available on the Q3 results release that was sent out to all of you earlier.
I now hand the floor over to Mr. Nitin
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