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.

HDFC Mutual Fund has officially crossed the 5% shareholding threshold in Mphasis Limited, triggering mandatory disclosure requirements under securities regulations. The fund's aggregate holdings reached 5.01% of the company's paid-up equity share capital as of January 16, 2026.

Shareholding Details and Acquisition

The disclosure reveals that HDFC Mutual Fund's total shareholding increased from 4.90% to 5.01% through open market acquisitions. The fund acquired 2,04,615 additional shares, representing 0.11% of the company's total share capital.

Company Capital Structure

Mphasis Limited's paid-up equity share capital stands at ₹190.56 crores, comprising 19,05,57,873 equity shares of ₹10.00 each. The company's shares are listed on both BSE Limited and the National Stock Exchange of India Limited.

HDFC Mutual Fund Schemes Involved

The shareholding is distributed across multiple HDFC Mutual Fund schemes managed by HDFC Trustee Company Limited. The participating schemes include:

• HDFC BSE 500 ETF and Index Fund
• HDFC Arbitrage Fund and Value Fund
• HDFC Balanced Advantage Fund
• HDFC Innovation Fund and Technology Fund
• HDFC Large and Mid Cap Fund
• HDFC Multi Cap Fund and Mid Cap Fund
• Various NIFTY-based ETFs and Index Funds
• HDFC ELSS Tax Saver

Regulatory Compliance

The disclosure was made in accordance with Regulation 29(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires disclosure when an entity's shareholding crosses the 5% threshold in a listed company. HDFC Asset Management Company Limited, as the investment manager for HDFC Mutual Fund, confirmed that the fund does not belong to the promoter or promoter group of Mphasis Limited.

The acquisition represents a strategic investment by one of India's leading mutual fund houses in the IT services company, reflecting confidence in Mphasis Limited's business prospects and growth potential in the technology sector.