Mphasis
Mphasis
Information Technology F&OKey Fundamentals
MidcapComputer Software & ConsultingInformation TechnologyTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 64.7%
Weaknesses
4- The company has delivered a poor sales growth of 10.3% over past five years.
- Promoters have pledged 100% of their holding.
- Debtor days have increased from 78.6 to 96.4 days.
- Promoter holding has decreased over last 3 years: -25.0%
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoMphasis Ltd, with a market cap of ₹43,660 Cr and a PE of 22.9x, is a mid-large-cap IT services company that has delivered 10% compounded sales and 11% compounded profit growth over 10 years while maintaining an ROE of ~19%. However, the stock has declined 22% over the past year, promoter holding has fallen 25% over three years with 100% of promoter shares pledged, and debtor days have risen from 78.6 to 96.4 days.
- Consistent long-term ROE averaging 18-20% over 3, 5, and 10 years, with last year at 19%, indicating efficient capital allocation
- TTM revenue growth has accelerated to 14% compared to 5% compounded sales growth over 3 years, signaling a potential demand recovery
- TTM profit growth of 11% outpaces the 5% compounded profit growth of the last 3 years, reflecting improving profitability trajectory
- Healthy dividend payout ratio of 64.7% with a dividend yield of 2.71%, providing meaningful shareholder returns relative to IT sector peers
- 10-year compounded profit growth of 11% demonstrates sustained long-term earnings compounding ability
- PE ratio of 22.9x is moderate for an IT services company, compared to the broader IT sector where large-caps often trade at 25-35x
- 10-year stock CAGR of 16% shows the company has created meaningful long-term wealth despite recent underperformance
- Price-to-book ratio of 4.07x, combined with ~19% ROE, reflects a business that earns well above its cost of equity
- Promoters have pledged 100% of their holding, creating significant risk of forced selling in a market downturn
- Promoter holding has decreased by 25% over the last 3 years, signaling potential lack of long-term commitment from controlling shareholders
- Debtor days have increased from 78.6 to 96.4 days, indicating deteriorating working capital efficiency and potential collection challenges
- 5-year compounded sales growth of only 10% is modest for a mid-cap IT company, flagged as poor relative to peers
- Stock has declined 22% over 1 year and has a negative 3-year CAGR of -2%, indicating sustained market scepticism
- 5-year stock CAGR is -5%, meaning the stock has destroyed value for medium-term investors despite business growth
- 3-year compounded profit growth of only 5% suggests margin pressure or slower deal conversion during the recent period
- Significant divergence between business growth (10% sales CAGR over 10 years) and 5-year stock return (-5% CAGR) suggests the stock may have been overvalued earlier and is still correcting
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- Stock down 11.3% YTD Sep 02
Mphasis shares settled at ₹2,509 on Sep 2, down 11.30% year-to-date with the stock currently in a downtrend below its 200 DMA of ₹2,483.50.
- Q1 net profit dips sequentially Aug 18
Net profit for Q1 FY27 (June 2026) fell to ₹489.18 crore from ₹511.36 crore in Q4 FY26, a sequential decline despite revenue growth.
- Strategic AI deal in Japan Sep 02
Mphasis partnered with TechnoPro Holdings (~30,000 engineers) to deploy AI-powered enterprise solutions in Japan, targeting financial services and manufacturing sectors using Mphasis Tria and NeoIP platforms.
- Strong annual revenue growth Aug 18
Consolidated revenue rose ~11.6% to ₹15,879.65 crore in FY26 from ₹14,229.99 crore in FY25, with healthy operating cash flow of ₹1,253 crore and debt-to-equity of just 0.17.
- Healthy institutional ownership Aug 18
DII holds 45.31% and FII holds 19.50% as of March 2026, with bullish investor sentiment and share price up 13% over the past six months.
- Virtual analyst meet Sep 9 Sep 03
Mphasis scheduled a virtual analyst meet on September 9, 2026 as part of the BofA India IT virtual call series; no unpublished price-sensitive information to be shared.
- Bengaluru green CSR initiative Sep 11
Mphasis partnered with SGBS Unnati Foundation and BMRCL for metro corridor maintenance, supporting 100,000 tree plantings and 1,200 percolation wells to conserve 153 million litres of rainwater.
TL;DR: Mphasis is executing well on growth, with FY26 revenue up 11.6% and a significant AI partnership in Japan expanding its geographic and capability footprint. Key risks include sequential profit softness in Q1 and the stock trading below its 200 DMA with an 11.3% YTD decline. The Japan AI deal with TechnoPro and strong institutional backing suggest improving strategic positioning, though near-term price action remains under pressure.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,252 | 3,276 | 3,338 | 3,412 | 3,422 | 3,536 | 3,561 | 3,710 | 3,732 | 3,902 | 4,003 | 4,243 | 4,384 |
| Expenses | 2,665 | 2,681 | 2,737 | 2,773 | 2,804 | 2,888 | 2,883 | 3,007 | 3,030 | 3,180 | 3,252 | 3,439 | 3,589 |
| Operating Profit | 587 | 596 | 601 | 639 | 619 | 648 | 678 | 703 | 703 | 722 | 750 | 804 | 795 |
| OPM % | 18% | 18% | 18% | 19% | 18% | 18% | 19% | 19% | 19% | 18% | 19% | 19% | 18% |
| Other Income | 50 | 49 | 54 | 64 | 74 | 59 | 63 | 60 | 81 | 75 | 27 | 108 | 83 |
| Interest | 24 | 34 | 53 | 50 | 50 | 40 | 39 | 36 | 42 | 44 | 41 | 77 | 49 |
| Depreciation | 87 | 89 | 103 | 131 | 105 | 104 | 132 | 135 | 132 | 128 | 143 | 153 | 147 |
| PBT | 526 | 522 | 499 | 522 | 537 | 563 | 569 | 591 | 610 | 625 | 593 | 681 | 683 |
| Tax % | 25% | 25% | 25% | 25% | 25% | 25% | 25% | 24% | 28% | 25% | 25% | 25% | 28% |
| Net Profit | 396 | 392 | 374 | 393 | 405 | 423 | 428 | 446 | 442 | 469 | 442 | 510 | 490 |
| EPS in Rs | 21.01 | 20.78 | 19.79 | 20.81 | 21.39 | 22.37 | 22.56 | 23.49 | 23.22 | 24.65 | 23.21 | 26.71 | 25.65 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 5,795 | 6,081 | 6,076 | 6,546 | 7,731 | 8,844 | 9,722 | 11,961 | 13,798 | 13,279 | 14,230 | 15,880 | 16,531 |
| Expenses | 4,925 | 5,218 | 5,108 | 5,483 | 6,407 | 7,193 | 7,919 | 9,844 | 11,365 | 10,857 | 11,583 | 12,901 | 13,461 |
| Operating Profit | 870 | 863 | 969 | 1,062 | 1,324 | 1,650 | 1,803 | 2,118 | 2,434 | 2,422 | 2,647 | 2,978 | 3,070 |
| OPM % | 15% | 14% | 16% | 16% | 17% | 19% | 19% | 18% | 18% | 18% | 19% | 19% | 19% |
| Other Income | 194 | 172 | 223 | 149 | 177 | 178 | 133 | 160 | 162 | 218 | 255 | 290 | 293 |
| Interest | 28 | 24 | 14 | 13 | 17 | 81 | 63 | 74 | 97 | 161 | 166 | 204 | 211 |
| Depreciation | 98 | 121 | 79 | 71 | 76 | 232 | 242 | 291 | 325 | 410 | 476 | 555 | 570 |
| PBT | 938 | 890 | 1,099 | 1,128 | 1,407 | 1,515 | 1,631 | 1,913 | 2,173 | 2,068 | 2,260 | 2,509 | 2,582 |
| Tax % | 28% | 29% | 28% | 26% | 24% | 22% | 25% | 25% | 25% | 25% | 25% | 26% | — |
| Net Profit | 675 | 632 | 792 | 838 | 1,073 | 1,185 | 1,217 | 1,431 | 1,638 | 1,555 | 1,702 | 1,863 | 1,910 |
| EPS in Rs | 32.1 | 30.05 | 37.62 | 43.34 | 57.64 | 63.52 | 65.06 | 76.19 | 86.94 | 82.27 | 89.55 | 97.61 | 100 |
| Div. Payout % | 50% | 67% | 45% | 46% | 47% | 55% | 100% | 60% | 58% | 67% | 64% | 64% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 210 | 210 | 210 | 193 | 186 | 187 | 187 | 188 | 188 | 189 | 190 | 191 |
| Reserves | 5,270 | 5,645 | 5,942 | 5,289 | 5,064 | 5,643 | 6,340 | 6,755 | 7,746 | 8,606 | 9,438 | 10,553 |
| Borrowings | 575 | 461 | 260 | 390 | 543 | 571 | 513 | 527 | 198 | 1,544 | 1,888 | 2,620 |
| Other Liabilities | 1,312 | 1,092 | 889 | 1,109 | 1,576 | 2,339 | 2,324 | 3,214 | 3,373 | 3,662 | 3,228 | 4,246 |
| Total Liabilities | 7,367 | 7,408 | 7,301 | 6,980 | 7,368 | 8,740 | 9,365 | 10,684 | 11,506 | 14,000 | 14,744 | 17,609 |
| Fixed Assets | 2,334 | 1,597 | 1,921 | 1,884 | 2,170 | 3,013 | 3,020 | 3,774 | 4,060 | 5,533 | 5,781 | 6,435 |
| CWIP | 20 | 56 | 1 | 2 | 3 | 17 | 3 | 11 | 32 | 61 | 0 | 0 |
| Investments | 1,443 | 2,122 | 2,396 | 1,782 | 1,329 | 1,326 | 1,846 | 1,813 | 1,753 | 3,090 | 2,208 | 1,769 |
| Other Assets | 3,569 | 3,633 | 2,983 | 3,312 | 3,866 | 4,384 | 4,496 | 5,087 | 5,662 | 5,316 | 6,754 | 9,404 |
| Total Assets | 7,367 | 7,408 | 7,301 | 6,980 | 7,368 | 8,740 | 9,365 | 10,684 | 11,506 | 14,000 | 14,744 | 17,609 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 616 | 731 | 664 | 723 | 950 | 1,321 | 1,455 | 1,716 | 1,462 | 2,180 | 1,905 | 1,253 |
| Investing | -380 | -175 | 267 | 507 | 280 | 142 | -810 | -271 | 196 | -2,496 | 32 | -173 |
| Financing | -186 | -568 | -710 | -1,380 | -1,342 | -825 | -861 | -1,389 | -1,440 | 77 | -1,756 | -943 |
| Net Cash Flow | 50 | -12 | 221 | -149 | -112 | 638 | -217 | 56 | 217 | -239 | 181 | 137 |
| Free Cash Flow | 559 | 609 | 549 | 692 | 868 | 1,197 | 1,329 | 1,597 | 1,351 | 2,088 | 1,845 | 937 |
| CFO/OP | 103 | 112 | 99 | 94 | 98 | 104 | 100 | 98 | 84 | 114 | 99 | 66 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 39 | 39 | 38 | 45 | 45 | 34 | 35 | 68 | 67 | 67 | 73 | 96 |
| Cash Conversion Cycle | 39 | 39 | 38 | 45 | 45 | 34 | 35 | 68 | 67 | 67 | 73 | 96 |
| Working Capital Days | -5 | 20 | 29 | 21 | 19 | 6 | 15 | 13 | 19 | -27 | -22 | -19 |
| ROCE % | 16% | 15% | 18% | 19% | 24% | 26% | 25% | 27% | 29% | 24% | 22% | 22% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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69 extracted metrics + investor summaries across FY05–FY27.
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Company Information
Mphasis a global Information Technology (IT) solutions provider specializing in providing cloud and cognitive services, applies next-generation technology to help enterprises transform businesses globally.(Source : 202003 Annual Report Page No:36)
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