Mphasis Ltd logo

Mphasis Ltd

MPHASIS NSE

Mphasis a global Information Technology (IT) solutions provider specializing in providing cloud and cognitive services, applies next-generation technology to help enterprises transform businesses globally.(Source : 202003 Annual Report Page No:36)

AI Verdict: HOLD Confidence: 5%

Mphasis trades at a PE of 24x with consistent 19% ROE and healthy 64.7% dividend payout, but poor sales growth of 10.3% over 5 years and a 25.1% decline in promoter holding over 3 years warrant caution. The stock has underperformed with a -16% return over the past year despite 71% analyst buy ratings, suggesting limited near-term upside at current valuations.

Key Fundamentals

MidcapComputer Software & ConsultingInformation Technology
Market Cap
₹43,133 Cr
Volatility
Moderate
P/E Ratio
23.15
EBITDA
₹2,943 Cr
Return on Equity
17.68%
Debt to Equity
0.14
Book Value
₹562.88
EPS
₹82.67
52W High
₹3,037.2
52W Low
₹2,013

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 64.7%

Weaknesses

3
  • The company has delivered a poor sales growth of 10.3% over past five years.
  • Debtor days have increased from 78.6 to 96.4 days.
  • Promoter holding has decreased over last 3 years: -25.1%

Growth Rate

Revenue Growth
9.63% ↗
Net Income Growth
9.67% ↘
Cash Flow Change
-12.59% ↘
ROE
0.00% ↘
ROCE
3.25% ↘
EBITDA Margin (Avg.)
-9.34% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Mphasis trades at a PE of 24x with consistent 19% ROE and healthy 64.7% dividend payout, but poor sales growth of 10.3% over 5 years and a 25.1% decline in promoter holding over 3 years warrant caution. The stock has underperformed with a -16% return over the past year despite 71% analyst buy ratings, suggesting limited near-term upside at current valuations.

Bull Case 8
  • Strong analyst consensus with 71.43% buy ratings (25 out of 35 analysts recommend buy)
  • Consistent ROE of 19% over 5 years and 18% over 3 years indicates efficient capital allocation
  • Healthy dividend payout ratio of 64.7% with a current dividend yield of 2.65%, attractive for income investors
  • TTM revenue growth accelerating to 12% compared to 5% compounded sales growth over 3 years, signaling recovery
  • TTM profit growth of 13% outpacing 3-year CAGR of 5%, indicating improving profitability trajectory
  • 10-year compounded profit growth of 11% demonstrates long-term earnings consistency
  • PE of 24x is reasonable for an IT company with 19% ROE and double-digit earnings growth
  • 10-year stock CAGR of 15% shows strong long-term wealth creation track record
Bear Case 8
  • Promoter holding has decreased by 25.1% over last 3 years, signaling potential lack of confidence from Blackstone
  • Stock has delivered -16% return over the past 1 year, significantly underperforming the broader market
  • Debtor days have increased from 78.6 to 96.4 days, indicating deteriorating working capital efficiency
  • Poor 5-year sales CAGR of only 10% reflects sluggish top-line growth for a mid-cap IT company
  • 3-year stock CAGR of only 7% and 5-year CAGR of just 2% show prolonged underperformance
  • 3-year compounded profit growth of only 5% lags industry peers in the IT sector
  • Price-to-book ratio of 4.16x is elevated relative to modest single-digit revenue growth over 3 years
  • Market cap of Rs 41,883 Cr with only 5% 3-year sales CAGR suggests the stock is priced for growth it has not delivered

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 4
  • Stock down 20% YTD May 28

    Mphasis shares have fallen 20% since the start of the year amid mounting macroeconomic concerns affecting IT stocks.

  • Lost 7th largest IT rank May 28

    Mphasis lost its position as India's 7th-largest IT services company to Coforge, which reported $1.87 billion in revenue (up 29% YoY) versus Mphasis' $1.8 billion.

  • Blackstone pledges entire 30.55% stake May 27

    Blackstone pledged its entire 30.55% stake in Mphasis to raise ~$700 million (USD 550 million facility) to refinance its acquisition loan, creating new encumbrances on promoter shares.

  • Stock fell on Tria launch day May 27

    Mphasis shares ended 1.28% lower at ₹2,236.20 on NSE on the day of the Tria platform launch, underperforming the benchmark Nifty.

Positives 5
  • Tria AI platform launched May 27

    Mphasis launched Mphasis Tria, a three-layer enterprise AI platform with outcome-based pricing, investing 1.5% of FY26 revenue. Already piloting with Fortune 50 clients across payments, demand forecasting and pricing optimization.

  • Bullish analyst targets raised May 29

    Nomura (₹2,620), HSBC (₹2,780), JPMorgan (₹2,650), and Motilal Oswal (₹3,100 buy) issued bullish targets post-Tria launch, citing shift to outcome-based model and TTM TCV above USD 2 billion.

  • AI deal momentum accelerating May 27

    AI-related deals grew 68% in FY26 vs FY25 with average deal size increasing from $52 million to $74 million, signaling strong enterprise AI demand.

  • Revenue growth guidance intact May 28

    Management expects high single-digit to low double-digit growth in FY27; Motilal Oswal forecasts USD revenue CAGR of ~10% and INR PAT CAGR of ~15% over FY26-28.

  • Platform-led recurring revenue model May 27

    Mphasis unveiled Modernize and Optimize product lines with ARR tracking from FY28, shifting from bespoke services to scalable platform-based commercial model with recurring revenue potential.

Neutral 5
  • Block trade of Rs 23.15 crore Jun 23

    Approximately 1,02,945 shares traded at Rs 2,249.10 per share on NSE block deal window, totaling Rs 23.15 crores between institutional investors.

  • Trading window closed for Q1FY26 Jun 22

    Mphasis closed trading window for designated persons from June 23, 2026 until 48 hours after Q1FY26 results declaration.

  • No promoter share encumbrance in FY26 Jun 17

    BCP Topco IX Pte. Ltd. declared no encumbrance on shares during FY25-26 under SEBI Takeover Regulations (separate from the May refinancing event).

  • Investec conference attendance Jun 9

    Mphasis attended the Confluence Investec Conference on June 12, 2026 in Chennai, confirming no UPSI would be shared.

  • Investor/Analyst Day 2026 held May 27

    Mphasis held its Investor/Financial Analyst Day on May 27, 2026, presenting its platform strategy and AI transformation roadmap.

TL;DR: Mphasis is making a bold strategic pivot from traditional IT services to a platform-led, outcome-based AI model with the Tria launch, drawing bullish analyst upgrades and strong AI deal momentum (68% growth, larger deal sizes). Key risks include the 20% YTD stock decline, loss of ranking to Coforge, and Blackstone's full stake pledge for refinancing. The trend is cautiously improving as the company lays FY27-28 foundations for ARR-based revenue, but execution on the platform transition remains unproven and near-term macro headwinds persist for the IT sector.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
3,361
3,252
3,276
3,338
3,412
3,422
3,536
3,561
3,710
3,732
3,902
4,003
4,243
Expenses
2,763
2,665
2,681
2,737
2,773
2,804
2,888
2,883
3,007
3,030
3,180
3,252
3,439
Operating Profit
599
587
596
601
639
619
648
678
703
703
722
750
804
OPM %
18%
18%
18%
18%
19%
18%
18%
19%
19%
19%
18%
19%
19%
Other Income
43
50
49
54
64
74
59
63
60
81
75
27
108
Interest
24
24
34
53
50
50
40
39
36
42
44
41
77
Depreciation
83
87
89
103
131
105
104
132
135
132
128
143
153
PBT
534
526
522
499
522
537
563
569
591
610
625
593
681
Tax %
24%
25%
25%
25%
25%
25%
25%
25%
24%
28%
25%
25%
25%
Net Profit
405
396
392
374
393
405
423
428
446
442
469
442
510
EPS in Rs
21.51
21.01
20.78
19.79
20.81
21.39
22.37
22.56
23.49
23.22
24.65
23.21
26.71
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
5,795
6,081
6,076
6,546
7,731
8,844
9,722
11,961
13,798
13,279
14,230
15,880
Expenses
4,925
5,218
5,108
5,483
6,407
7,193
7,919
9,844
11,365
10,857
11,583
12,901
Operating Profit
870
863
969
1,062
1,324
1,650
1,803
2,118
2,434
2,422
2,647
2,978
OPM %
15%
14%
16%
16%
17%
19%
19%
18%
18%
18%
19%
19%
Other Income
194
172
223
149
177
178
133
160
162
218
255
290
Interest
28
24
14
13
17
81
63
74
97
161
166
204
Depreciation
98
121
79
71
76
232
242
291
325
410
476
555
PBT
938
890
1,099
1,128
1,407
1,515
1,631
1,913
2,173
2,068
2,260
2,509
Tax %
28%
29%
28%
26%
24%
22%
25%
25%
25%
25%
25%
26%
Net Profit
675
632
792
838
1,073
1,185
1,217
1,431
1,638
1,555
1,702
1,863
EPS in Rs
32.1
30.05
37.62
43.34
57.64
63.52
65.06
76.19
86.94
82.27
89.55
97.61
Div. Payout %
50%
67%
45%
46%
47%
55%
100%
60%
58%
67%
64%
64%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
210
210
210
193
186
187
187
188
188
189
190
191
Reserves
5,270
5,645
5,942
5,289
5,064
5,643
6,340
6,755
7,746
8,606
9,438
10,553
Borrowings
575
461
260
390
543
571
513
527
198
1,544
1,116
2,620
Other Liabilities
1,312
1,092
889
1,109
1,576
2,339
2,324
3,214
3,373
3,662
4,000
4,419
Total Liabilities
7,367
7,408
7,301
6,980
7,368
8,740
9,365
10,684
11,506
14,000
14,744
17,782
Fixed Assets
2,334
1,597
1,921
1,884
2,170
3,013
3,020
3,774
4,060
5,533
5,781
6,435
CWIP
20
56
1
2
3
17
3
11
32
61
0
0
Investments
1,443
2,122
2,396
1,782
1,329
1,326
1,846
1,813
1,753
3,090
2,208
1,769
Other Assets
3,569
3,633
2,983
3,312
3,866
4,384
4,496
5,087
5,662
5,316
6,754
9,577
Total Assets
7,367
7,408
7,301
6,980
7,368
8,740
9,365
10,684
11,506
14,000
14,744
17,782
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
616
731
664
723
950
1,321
1,455
1,716
1,462
2,180
1,905
839
Investing
-380
-175
267
507
280
142
-810
-271
196
-2,496
32
478
Financing
-186
-568
-710
-1,380
-1,342
-825
-861
-1,389
-1,440
77
-1,756
-1,243
Net Cash Flow
50
-12
221
-149
-112
638
-217
56
217
-239
181
75
Free Cash Flow
559
609
549
692
868
1,197
1,329
1,597
1,351
2,088
1,845
782
CFO/OP
103
112
99
94
98
104
100
98
84
114
99
44
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
39
39
38
45
45
34
35
68
67
67
73
96
Cash Conversion Cycle
39
39
38
45
45
34
35
68
67
67
73
96
Working Capital Days
-5
20
29
21
19
6
15
13
19
-27
-22
12
ROCE %
16%
15%
18%
19%
24%
26%
25%
27%
29%
24%
23%
23%

Shareholding Pattern

As of Mar 2026
DIIs 45.65%
Promoters 30.55%
FIIs 19.50%
Public 2.92%
Others 1.38%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
56.03%
55.99%
55.95%
55.90%
55.80%
55.72%
55.70%
55.65%
55.63%
55.58%
55.57%
55.52%
55.45%
40.35%
40.32%
40.23%
40.14%
40.10%
40.10%
30.59%
30.55%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
15.71%
14.84%
18.32%
18.25%
20.78%
20.61%
19.00%
18.52%
19.79%
19.50%
DIIs
16.71%
18.13%
17.49%
17.21%
17.18%
17.46%
16.85%
19.54%
21.00%
20.49%
22.02%
23.80%
24.74%
35.94%
36.97%
34.62%
34.91%
36.50%
37.07%
45.25%
45.65%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
3.88%
3.96%
4.26%
4.33%
4.36%
4.82%
4.43%
4.53%
4.07%
4.63%
3.74%
3.65%
3.64%
4.06%
3.46%
3.32%
3.22%
3.23%
3.04%
2.97%
2.92%
Others
23.37%
21.92%
22.30%
22.57%
22.67%
21.99%
23.02%
20.28%
19.30%
19.30%
18.67%
1.32%
1.33%
1.32%
1.00%
1.06%
1.12%
1.17%
1.27%
1.40%
1.38%
No. of Shareholders
0
65,810
73,634
1,07,259
1,20,785
1,26,895
1,51,470
1,77,533
1,69,215
1,77,013
1,53,792
1,48,428
1,47,350
1,67,593
1,49,318
1,43,700
1,39,813
1,52,602
1,45,611
1,40,263
1,32,916

Documents

1
Concall - May 2017 May 2017
2
Concall - Aug 2017 Aug 2017
3
Concall - Nov 2017 Nov 2017
4
Concall - Feb 2018 Feb 2018
5
Concall - Mar 2018 Mar 2018

Frequently Asked Questions about Mphasis Ltd

What does Mphasis Ltd do?
Mphasis a global Information Technology (IT) solutions provider specializing in providing cloud and cognitive services, applies next-generation technology to help enterprises transform businesses globally.(Source : 202003 Annual Report Page No:36)
Where is Mphasis Ltd (MPHASIS) listed?
Mphasis Ltd is listed on the Indian stock exchanges. It is listed on NSE: MPHASIS and BSE: 526299. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Mphasis Ltd belong to?
Mphasis Ltd operates in the Information Technology sector within the IT - Software industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Mphasis Ltd?
Mphasis Ltd has a market capitalisation of approximately ₹43132.86 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Mphasis Ltd?
The Price-to-Earnings (PE) ratio of Mphasis Ltd is 23.15. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Mphasis Ltd?
Over the past 52 weeks, Mphasis Ltd has traded between a low of ₹2,013 and a high of ₹3,037.2. This range helps investors understand the stock's price volatility and recent trading levels.
Does Mphasis Ltd pay dividends?
Yes, Mphasis Ltd has a dividend yield of 2.74%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Mphasis Ltd?
Mphasis Ltd has a Return on Equity (ROE) of 17.68%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Mphasis Ltd on Tapetide?
On Tapetide, you can view Mphasis Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Mphasis a global Information Technology (IT) solutions provider specializing in providing cloud and cognitive services, applies next-generation technology to help enterprises transform businesses globally.(Source : 202003 Annual Report Page No:36)

Website mphasis.com
CEO Mr. Nitin Omprakash Rakesh
Employees 30,157
Listed 2004-06-04
Face Value ₹ 10
Issued Size 19,05,57,873

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