Mphasis management has shared positive guidance during their recent earnings call, setting expectations for strong performance in the upcoming quarter. The company's leadership outlined their growth projections and strategic targets for the remainder of the fiscal year.

Growth Projections for Q4 FY26

The management team expects Q4 FY26 to emerge as the strongest sequential growth quarter for the year. This projection indicates the company's confidence in accelerating business momentum as it approaches the final quarter of fiscal year 2026.

Strategic Guidance Alignment

The Q4 FY26 growth expectations align with Mphasis's broader strategic guidance of achieving growth rates that exceed twice the industry average. This ambitious target demonstrates the company's commitment to outperforming market benchmarks and capturing a larger share of industry growth.

Management Outlook

During the concall update, management expressed confidence in their ability to deliver on these growth projections. The guidance reflects the company's assessment of market opportunities and internal capabilities as it positions itself for the final quarter of the fiscal year.

Mphasis Limited has delivered a strong financial performance for the quarter ended 31 December 2025, demonstrating consistent growth momentum across multiple business segments. The IT services company's consolidated results reflect robust operational execution and strategic positioning in key markets.

Financial Performance Overview

The company's Q3 FY26 results showcase solid growth trajectory with revenue expansion and maintained profitability levels. Key financial metrics demonstrate the company's ability to navigate market challenges while delivering value to stakeholders.

Segment-wise Performance Analysis

The company's diversified business portfolio delivered mixed results across different industry verticals, with Banking and Financial Services leading growth while Logistics and Transportation faced headwinds.

Banking and Financial Services Drives Growth

Banking and Financial Services segment emerged as the primary growth driver, generating revenue of ₹20,912.49 million in Q3 FY26, representing a significant 20.8% year-over-year increase. This segment contributed over 52% of total revenue and demonstrated strong momentum with segment result of ₹6,453.19 million.

Technology and Insurance Segments Show Resilience

Technology Media and Telecom segment recorded revenue of ₹7,423.01 million, up 23.1% year-over-year, while the Insurance segment achieved ₹6,039.93 million, marking a substantial 45.4% annual growth. These segments collectively contributed approximately 33% of total revenue.

Nine-Month Performance Highlights

For the nine months ended 31 December 2025, Mphasis demonstrated consistent performance with total revenue of ₹116,369.79 million, up 10.6% from ₹105,199.46 million in the corresponding period last year. Net profit for the nine-month period reached ₹13,529.62 million compared to ₹12,556.47 million in the previous year, reflecting a 7.7% increase.

Exceptional Items and Regulatory Impact

The company reported an exceptional item of ₹354.77 million in Q3 FY26 related to the impact of changes in labour laws. On 21 November 2025, the Government of India notified four Labour Codes consolidating 29 existing labour laws, which resulted in incremental costs for employee benefits calculations including gratuity, leave encashment, and provident fund contributions.

Strategic Acquisitions and Investments

During the reporting period, Mphasis executed several strategic acquisitions to strengthen its capabilities. The company acquired a 26% equity stake in Aokah Inc. for ₹355.17 million in July 2025, and completed acquisitions of EDZ systems' cybersecurity business for ₹1,396.03 million and tsQs Inc's software testing business for ₹2,266.78 million.

Operational Metrics and Market Position

The company's operational efficiency remained stable with total expenses of ₹34,348.75 million in Q3 FY26. Employee benefits expense stood at ₹22,239.15 million, reflecting the company's continued investment in talent acquisition and retention. The effective tax rate for the quarter was approximately 25.4%, demonstrating efficient tax management strategies.