IT services firm Mphasis reported a 14% year-on-year (YoY) rise in March-quarter net profit, with artificial intelligence-led deals accounting for a majority of its new contract wins.
The company reported a consolidated net profit of ₹509.6 crore for Q4FY26, up from ₹446.5 crore a year ago, while revenue rose 14.4% YoY and 6% sequentially to ₹4,242.7 crore. In constant currency, the company’s revenue grew 2.5% sequentially and 7.1% YoY.
Earnings per share for the quarter increased 13.7% YoY to ₹26.7.
For the full year, revenue grew 11.6% to ₹15,879.6 crore, while net profit rose to ₹1,862.6 crore from ₹1,702.1 crore in FY25. Mphasis reported constant currency revenue growth of 6.7% YoY for FY26.
The company has witnessed a growing role of AI in its deal pipeline. Mphasis reported total contract value wins of $2.1 billion in FY26, up 68% YoY, with nearly 60% of these deals being AI-led. In the March quarter alone, the company signed deals worth $407 million, of which 64% were driven by AI.
“The value of true AI lies not in isolated use cases, but in systematically embedding intelligence at scale across applications, processes, and decision flows. This shift is enabling enterprises to re-architect themselves around what we describe as agentic AI, systems that are not only predictive, but capable of driving decisions and actions in a governed, autonomous manner,” Chief Executive Officer and Managing Director Nitin Rakesh said during the quarterly earnings call.
He added that the company is also seeing a decisive shift among enterprises from experimentation to scale deployment of AI initiatives.
The company’s operating margin for the quarter stood at 15.4%, expanding 20 basis points sequentially and 10 basis points YoY. However, for the full year, operating margin remained flat at 15.3%.
The banking and financial services segment continued to anchor growth, contributing ₹2303.3 crore in quarterly revenue, followed by technology, media and telecom at ₹689.4 crore and insurance at ₹679.1 crore. The company said it recorded a one-time impact related to the implementation of India’s new labour codes during the year.
Mphasis also continued to invest in building out its AI capabilities through acquisitions. The recent buyout of Canada-based Theory and Practice (TAP), which brings a decision intelligence platform combining AI with behavioural economics, is expected to add a new layer to its AI stack and strengthen its Neo platform strategy.
“Our recent acquisition of TAP creates a combination that allows us to move beyond task automation, towards systems that can reason over business objectives, constraints, and domain context, using AI at scale,” Rakesh said.
This comes as a broader shift is underway in the IT services industry, where firms are moving from traditional headcount-led growth models to AI-enabled, non-linear revenue streams and are balancing AI-driven growth opportunities with pricing pressures in legacy services.
Moreover, the board recommended a final dividend of ₹62 per share for FY26, subject to shareholder approval, and approved the reappointment of CEO Nitin Rakesh for another five-year term starting October 2026.
Shares of Mphasis opened at ₹2,314.5 per share on NSE, up nearly 3% from the previous close.
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