Mphasis Limited, a leading IT solutions provider, has announced its consolidated financial results for the first quarter ended June 30, 2025, showcasing robust performance in revenue and profitability.

Financial Highlights

Key Developments

The company's Board of Directors reviewed and approved these results at their meeting held on July 24, 2025. The financial statements were prepared in accordance with Indian Accounting Standards and have undergone review by the Audit Committee.

Investor Communication

Mphasis has taken steps to ensure transparent communication with its stakeholders:

1. The financial results were published in two newspapers: Business Standard (in English) and Samyuktha Karnataka (in Kannada).
2. An investor/analyst call was conducted on July 25, 2025, with the audio recording made available on the company's website.

Recent Strategic Moves

Acquisition of EDZ Systems

On October 1, 2024, Mphasis Corporation, a wholly-owned subsidiary, acquired certain security business assets of EDZ Systems. This strategic move is expected to enhance Mphasis' capabilities in cybersecurity services.

SDS Inc. Business Acquisition

On February 12, 2025, Mphasis Corporation obtained control over the software testing business of SDS Inc., focusing on serving a strategic customer.

Investment in Aokia Inc.

On July 1, 2025, Mphasis Corporation entered into a shareholders agreement to acquire an 11.76% equity stake in Aokia Inc. for a consideration of USD 4 million. This investment aims to support Mphasis in generating customer opportunities with prospective global capability center customers.

Framework Agreement with Lucata Venture Inc.

On July 3, 2025, Mphasis Corporation entered into a framework agreement with Lucata Venture Inc. to acquire their AI and machine learning assets for a consideration of USD 64 million, including a contingent consideration of USD 5 million.

These strategic initiatives demonstrate Mphasis' commitment to expanding its service offerings and market presence in key technology areas such as cybersecurity, software testing, and artificial intelligence.

Outlook

While specific forward-looking statements are not provided, the company's recent acquisitions and investments suggest a focus on enhancing its technological capabilities and expanding its customer base in strategic areas.

Mphasis continues to position itself as a strong player in the IT solutions space, with a clear emphasis on innovation and strategic growth initiatives.

Mphasis Limited , a leading IT services and solutions provider, has reported impressive financial results for Q1, demonstrating strong growth and continued focus on artificial intelligence (AI) and next-generation technologies.

Financial Highlights

Mphasis delivered robust financial performance in Q1:

• Revenue reached $437.00 million, up 8.1% year-over-year in constant currency
• Achieved record Total Contract Value (TCV) wins of $760.00 million, including four large deals with three exceeding $100.00 million and one over $50.00 million
• Deal pipeline grew 84% year-over-year and 16% quarter-over-quarter, with 68% of the pipeline being AI-led
• Operating margin remained stable at 15.3%
• Earnings per share was INR 23.20
• Operating cash flow reached $52.00 million

Segment Performance

Mphasis reported revenue contributions from various segments:

AI-Driven Growth

The company's focus on AI-led solutions continues to yield significant results:

• 68% of the pipeline is AI-led
• Strong growth in AI-driven solutions across segments

Future Outlook

Mphasis expects to grow approximately 2X the industry growth rate, targeting operating margins within 14.75%-15.75%. With its strong quarterly performance and strategic focus on AI and next-generation technologies, Mphasis appears well-positioned to continue its growth trajectory and deliver value to its clients and shareholders in the coming quarters.

The company's record-breaking TCV wins and consistent year-over-year growth in revenue demonstrate its resilience and adaptability in a dynamic market environment. As Mphasis continues to expand its AI-led offerings and secure high-value contracts, it is likely to maintain its competitive edge in the IT services sector.