Mphasis Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 4,580.93 Cr (+17.40% YoY) and PAT growth of +19.62% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,580.93 Cr (+17.40% YoY) |
| PAT (Q2) | Rs. 561.13 Cr (+19.62% YoY) |
| EBITDA margin | 18.10% (-39 bps YoY) |
| EPS (Q2) | Rs. 29.39 (+19.20% YoY) |
Mphasis delivered 17.4% YoY reported revenue growth (9.7% CC) with PAT up 19.6% and EBIT margin of 14.79% inside the guided band, while TCV of USD 466 Mn extended a six-quarter streak above USD 400 Mn. However, execution slipped on cash: H1 CFO/PAT was 0.30x vs the guided ~80%, receivables grew far faster than revenue, and the Red Oak acquisition failed to close. Insurance margin normalization and a receivables correction are the swing items for the next print.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Sequential CC growth clears the +1.5–2.5% band | "ahead of the recent +1.5%–2.5% QoQ band is the guided base case" | +3.3% QoQ CC (press release) | Played out |
| Reported growth flattered by mid-90s rupee | "reported growth aided by a rupee that sat in the mid-90s" | +17.40% reported vs +9.7% CC YoY | Played out |
| EBIT margin flat within the band at best | "reported EBIT margin flat within the band at best" | 14.79%, flat QoQ, −48 bps YoY | Played out |
| Hedge-loss drag present | "the guided hedge-loss drag… should still be present" | Present in policy terms but not quantified in the filing — amount | Not observable |
| Red Oak partial-quarter add (~0.6% per one broker, pre-call note) | "one broker estimates the Q2 contribution at ~0.6%" | Zero — deal not consummated | Contradicted |
| TCV streak extension | "a sixth consecutive quarter above $400 Mn TCV" | USD 466 Mn, 66% AI-led | Played out |
| Utilization recovery | "whether that reversal shows up this quarter" | Employee costs +2.73% QoQ vs revenue +4.49%; margin flat | Partially |
| DSO direction off 95 days | "DSO direction off 95 days" | Receivables built faster than revenue — worsened — remains open for the call | Not addressed in the filing's metrics |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 CC revenue growth: high single-digit to low double-digit | Q4 FY26 earnings call; reaffirmed Q1 FY27 call | Q2 CC +9.7% YoY; H1 reported +17.43% | On Track |
| FY27 EBIT margin band 14.75%–15.75% (company EBIT definition) | Q4 FY26 and Q1 FY27 calls | 14.79% Q2; 14.78% Q1 | Met |
| Q2 FY27 "best sequential constant currency growth in three years" | Q1 FY27 call (Jul 24, 2026) | +3.3% QoQ CC vs prior best +2.5% | Met |
| OCF/net income ~80% through FY27 | Q4 FY26 call (CFO) | H1 CFO/PAT 0.30× | Missed |
| Red Oak contribution in Q2 (partial quarter) | Q1 FY27 call; Jul 1, 2026 agreement | Not consummated — zero contribution | Missed |
| DSO normalization (3–4 quarters from Q2 FY26) | Q2 FY26 call | Receivables +21.92% vs Mar vs revenue +4.49% QoQ | Missed |
| Logistics gradual recovery | Q1 FY27 call | Revenue −11.29% QoQ / −23.67% YoY | Missed |
| Insurance margin normalization by ~Q3 FY27 | Q1 FY27 call | Margin 12.98% vs 12.87% Q1; 32.45% a year ago | On Track |
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Net new TCV (USD Mn) | 528 | 428 | 407 | 461 | 466 |
| AI-led % | 42 | 62 | 64 | 63 | 66 |
| EBIT margin % | 15.3 | 15.2 | 15.4 | 14.8 | 14.8 |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.