Mphasis Limited reported a 68% increase in new Total Contract Value (TCV) wins to USD 2.1 billion in FY26, with 60% of these wins being AI-led. Chairman Girish S. Paranjpe shared this update during his address at the 35th Annual General Meeting held on July 23, 2026. The company’s AI-led pipeline currently stands at 69%, reflecting strong demand as it helps enterprises transition from pilot projects to production-scale software.

Paranjpe acknowledged that while the macro environment remains complex due to geopolitical tensions and budget pressures, the primary hesitation among enterprises stems from the rapid pace of technological change. He noted that the lack of a repeatable playbook for enterprise AI adoption is causing delays in decision-making, though this is viewed as prudence rather than irrationality.

The company is leveraging its NeoIP platform and the Enterprise Agency Platform Mphasis Tria to address these challenges. These platforms combine infrastructure, domain knowledge, and decision intelligence to facilitate scalable AI transformation. Paranjpe emphasized that Mphasis is actively helping write the playbook for enterprise AI adoption, focusing on specific decisions and delivering visible value at each step.

Financial and Operational Highlights

The strong performance in TCV wins and pipeline growth is being monitored closely by the board. Paranjpe indicated that while the translation of this pipeline into revenue growth is underway, it is not yet complete. Large AI transformation programmes typically ramp up over time, but the leading indicators provide confidence for the future.

Strategic Outlook

Paranjpe highlighted that Mphasis is not immune to the broader environment, with some client decisions taking longer than expected. The company remains focused on serving clients and converting its robust pipeline into sustained revenue growth. The board expressed full support for the management team's strategy, which prioritizes staying focused and building capabilities before the market rewards them.

The Chairman also addressed the company's workforce and community initiatives, acknowledging the contributions of its 32,000 employees. He cited the work of the Mphasis F1 Foundation, including the One Billion Drops initiative and partnerships with Plaksha University, TEACH, and Vigyanshaala, as examples of the company's commitment to being a responsible corporate citizen.

Mphasis Limited has issued an addendum to the notice of its 35th Annual General Meeting (AGM) to provide greater clarity regarding the remuneration of Chief Executive Officer and Managing Director Nitin Rakesh. The company specified that while the total annual salary and variable pay will generally be capped at 5% of net profits, this limit could be breached if stock options and Restricted Stock Units (RSUs) granted over multiple years are exercised in a single financial year. Consequently, the company is seeking shareholder approval to allow the total remuneration to extend up to 7% of net profits in such specific scenarios.

Remuneration Structure Details

The addendum outlines that the base remuneration, comprising annual salary and annual variable pay along with stock compensation, shall not exceed 5% of the net profits of the company in any financial year. This calculation is based on the provisions of Section 198 of the Companies Act, 2013. The company further noted that Mr. Nitin Rakesh may receive additional equity-linked incentives during his proposed tenure, subject to the recommendations of the nomination and remuneration committee.

Conditions for Increased Remuneration

A key disclosure in the addendum addresses the potential impact of exercising stock options and RSUs. Since the exercise periods for these equity incentives can span multiple financial years, a collective exercise in a single year could push the aggregate remuneration above the standard 5% threshold. To accommodate this, the company has requested member approval to pay overall managerial remuneration up to 7% of net profits should this situation arise.

AGM and Shareholder Approval

The 35th AGM is scheduled to be held on Thursday, July 23, 2026, at 9:00 am IST via Video Conferencing. Item number 6 of the special business pertains to the re-appointment of Mr. Nitin Rakesh for a term of five years effective October 01, 2026, and the approval of his remuneration. The addendum serves to ensure transparency and assist shareholders in making an informed decision regarding the special resolution. The notice will be published in Business Standard and Samyuktha Karnataka and is available on the company's website.