Mphasis Limited reported consolidated revenue from operations of ₹43,840.54 million for the quarter ended June 30, 2026, representing a 17.5% increase compared to ₹37,324.89 million in the same period last year. Consolidated net profit after tax (PAT) rose 10.8% to ₹4,895.06 million from ₹4,417.03 million in Q1FY26. The growth was underpinned by strong deal momentum, with Total Contract Value (TCV) wins reaching USD 461 million, 63% of which were attributed to AI-led initiatives.

The Board of Directors, at its meeting held on July 23, 2026, approved the audited standalone and consolidated financial results for Q1FY26. Statutory auditors B S R & Co. LLP issued an unmodified audit opinion on the results. Shareholders also approved a final dividend of ₹62 per equity share for FY26 at the Annual General Meeting held on the same day. The company’s Chief Executive Officer and Managing Director, Nitin Rakesh, highlighted early market acceptance of the Mphasis Tria™ platform as a key driver for the quarter’s performance.

Financial Performance Overview

Consolidated revenue grew 3.3% quarter-on-quarter and 17.5% year-on-year on a reported basis. In USD terms, revenue increased 7.7% YoY, while constant currency growth stood at 8.3% YoY. Direct revenue expanded 9.2% YoY in USD terms. Despite top-line growth, margins faced pressure due to strategic investments and acquisition-related costs. Gross margin declined by 200 basis points (bps) year-on-year to 26.9%. Operating margin fell by 50 bps to 14.8%, and net margin decreased by 60 bps to 11.2%.

Standalone revenue from operations reached ₹27,010.80 million, up 20.7% YoY from ₹22,373.71 million. Standalone PAT surged 54.0% to ₹4,592.13 million from ₹2,981.83 million in the corresponding period last year. Standalone basic EPS grew 53.4% to ₹24.06 from ₹15.68.

Segment Performance and Acquisitions

The Banking and Financial Services segment remained the largest contributor, generating ₹23,547.99 million in revenue, a 19.7% YoY increase. The Technology, Media and Telecom segment saw significant growth, with revenue rising 20.2% to ₹8,123.97 million. Insurance segment revenue grew 30.4% to ₹6,659.29 million. Conversely, the Logistics and Transportation segment declined 13.4% YoY to ₹1,879.11 million.

Mphasis completed several strategic acquisitions during the period. On April 21, 2026, it acquired Theory and Practice Business Intelligence Inc. (TAP) for a cash consideration of ₹180.21 million (CAD 2.66 million). TAP contributed ₹9.04 million to group revenue but resulted in a loss of ₹149.50 million, impacting consolidated profits. Additionally, the company acquired OKIN Process, Inc., for ₹521.59 million (USD 5.50 million), which contributed ₹379.33 million to revenues. A subsequent event disclosed on July 1, 2026, involves a definitive agreement to acquire a customer contract from Red Oak Tech, Inc., for up to ₹2,650.55 million (USD 28 million), subject to closing conditions.

What the Numbers Show

The divergence between standalone and consolidated net profit growth warrants attention. While standalone PAT jumped 54.0% to ₹4,592.13 million, consolidated PAT grew only 10.8% to ₹4,895.06 million. This gap is largely attributable to integration costs and losses from recent acquisitions, particularly the ₹149.50 million loss from TAP. Furthermore, employee benefits expense rose 12.3% YoY to ₹24,087.40 million, outpacing revenue growth and contributing to margin compression. The decline in gross margin by 200 bps suggests that cost-to-serve metrics are currently lagging behind top-line expansion, a trend management aims to address through AI-led efficiency gains in subsequent quarters.

Mphasis Limited shareholders have formally approved a final dividend of ₹62 per equity share and re-appointed Nitin Rakesh as Chief Executive Officer and Managing Director for a term of five years. The resolutions were passed at the company’s 35th Annual General Meeting (AGM) held via video conferencing on July 23, 2026. The voting results, scrutinized by S P Nagarajan, confirm broad investor support for the management’s proposals, including the adoption of audited financial statements for FY26.

The dividend declaration, which applies to equity shares with a face value of ₹10 each, received near-unanimous support. Shareholders cast 17,31,21,419 votes in favor, representing 100% of the valid votes polled, with only 406 votes against. This payout underscores the company’s commitment to returning capital to investors following the closure of the financial year ended March 31, 2026. The record date for determining dividend entitlement was July 16, 2026.

Voting Results and Director Re-appointments

In addition to the dividend, the AGM secured approval for key leadership changes. Nitin Rakesh’s re-appointment as CEO and Managing Director, effective October 01, 2026, was passed as a special resolution with 94.10% support (16,25,21,776 votes in favor). His remuneration structure includes a standard cap of 5% of net profits, extendable to 7% in scenarios involving the exercise of stock options or Restricted Stock Units (RSUs).

Shareholders also re-appointed directors Kabir Mathur and Pankaj Sood, who retire by rotation. Both ordinary resolutions passed with approximately 96.7% support. Furthermore, Independent Director Maureen Anne Erasmus was re-appointed for a five-year term effective December 20, 2026, securing 97.39% approval. All resolutions were conducted in compliance with Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Meeting Proceedings and Compliance

The AGM was chaired by Girish Srikrishna Paranjpe, Independent Director and Chairperson of the Board. Key managerial personnel, including CFO Aravind Viswanathan and Company Secretary Mayank Verma, attended the meeting. The remote e-voting facility was provided by National Securities Depository Limited (NSDL), with the voting window open from July 18 to July 22, 2026. Scrutinizer S P Nagarajan, a practicing Company Secretary, certified that the voting process adhered to Section 108 of the Companies Act, 2013 and Secretarial Standard-2 (SS-2). Statutory Auditors B S R & Co. LLP were also present to address queries regarding the audited standalone and consolidated financial statements for FY26.