MphasiS is an IT services company focused on digital transformation, cloud, data analytics and AI-driven enterprise modernization, and this quarter arrives with its strongest demand setup in years — a record pipeline up 28% YoY and five straight quarters of TCV above $400 Mn. The print will be tested against management's guide for the best sequential constant currency growth in three years, and against delivery within the 14.75%–15.75% EBIT margin band despite hedge losses, utilization ramp-up costs and the TAP earn-out drag.
| Results date | November 05, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 4,384.05 Cr (+3.3% QoQ / +17.5% YoY) |
| Previous quarter PAT | Rs. 489.51 Cr (-3.95% QoQ / +10.82% YoY) |
| Market cap | Rs. 48,226.17 Cr |
| CMP | Rs. 2,525.6 |
A board meeting is scheduled for November 5, 2026 (New York) to consider the Q2/H1 FY27 audited results. The trading window remains closed from September 23 to November 7, 2026.
The Q2 FY27 earnings call is scheduled for November 6, 2026 at 8:30 AM IST, after the results.
The central test this quarter is management's guide to the best sequential constant currency growth in three years — against the last four quarters' +2.0%, +1.5%, +2.5% and +2.1% QoQ CC run, that requires clearing roughly +2.5% QoQ CC, supported by a record pipeline (+8% QoQ / +28% YoY, 70% AI-led) and a partial-quarter contribution from the Red Oak Tech contract acquisition of up to Rs. 2,650.55 Mn (USD 28 Mn).
The demand backdrop is supportive but not guaranteed: NASSCOM's Q1 FY27 print showed industry revenue up just 1% QoQ with BFSI leading at +4.4% YoY, and the TCV-to-revenue correlation has slipped to 0.74 from over 0.9 as short-burst deals rise, making ramp pace on large deals the swing variable.
On margins, the rupee held in the mid-90s through the quarter — well above the ~Rs. 88/USD level above which Mphasis's hedge losses kick in — so the guided hedge-loss headwind should persist, while the Q1 utilization drop and TAP earn-out drag are the other identified compressing forces within the 14.75%–15.75% EBIT band.
Management has framed FY27 as the year the platform-first thesis shows up in the growth trajectory, not just in pipeline metrics, and the upcoming call is the first full test of that claim alongside the sequential growth guide.
FY27 guidance scorecard: Management reaffirmed the full-year frame at Q1; the call should update progress on each leg.
Q2 FY27-specific checks
Bookings and pipeline momentum
Red Oak closing and strategic execution
Management said Red Oak will contribute from next quarter but not for the full quarter, with consummation expected around end of August. On whether it lifts full-year growth above guidance, management pointed to broad-based momentum rather than a revised number.
Insurance segment costs rose 18% QoQ on transformation-program team ramp-ups, with the quarter's -3.1% QoQ revenue dip attributed to project milestone completions. Management expects normalization over the next two quarters, and Insurance grew about 35% in FY26.
The CFO said the hedge book runs four more quarters, with losses persisting at least through H1 FY27 and tapering in H2. The company does not report ex-FX margins, stating that forex is a realistic part of the business.
Management guided Q2 FY27 to the best sequential constant currency growth in three years, citing the highest pipeline it has ever carried and the strongest short-cycle deal activity. Q1 FY27 CC growth was +2.1% QoQ, and deal ramp costs were described as the predictable leading indicator of the revenue growth that follows.
The Q4 FY26 CFO explained the ~80% OCF-to-net-income target as a conscious trade-off to fund working capital for large annuity deals that offer clients year-one savings. Q1 FY27 OCF was $39 Mn.
Disclaimer: This earnings preview is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.