Mphasis reported a steady set of numbers for the March quarter, with profits rising 14% compared to last year, supported largely by strong traction in artificial intelligence-led deals.

The company posted a net profit of ₹509.6 crore for Q4FY26, up from ₹446.5 crore a year ago. Revenue came in at ₹4,242.7 crore, growing 14.4% year-on-year and 6% over the previous quarter. In constant currency terms, revenue grew 7.1% annually and 2.5% sequentially. Earnings per share also moved up 13.7% to ₹26.7.

Looking at the full year, Mphasis reported revenue of ₹15,879.6 crore, an increase of 11.6%, while net profit rose to ₹1,862.6 crore from ₹1,702.1 crore in FY25. Constant currency growth for the year stood at 6.7%.

A key highlight this time was the rising contribution of AI in the company’s deal pipeline. Total contract wins for FY26 stood at $2.1 billion, up 68% from last year, with close to 60% of these deals being driven by AI. In the March quarter alone, the company signed deals worth $407 million, with AI accounting for 64% of that.

CEO Nitin Rakesh said companies are no longer just experimenting with AI but are now adopting it at scale. He explained that businesses are increasingly embedding AI into their core systems, moving toward what he described as “agentic AI” — where systems can not only predict outcomes but also take decisions and act on them in a controlled way.

Margins also saw a slight improvement. Operating margin for the quarter stood at 15.4%, up both sequentially and year-on-year, although for the full year it remained flat at 15.3%.

The banking and financial services segment continued to be the biggest contributor, bringing in ₹2,303.3 crore in revenue for the quarter. Other key segments included technology, media and telecom at ₹689.4 crore, and insurance at ₹679.1 crore. The company also mentioned a one-time impact due to the implementation of India’s new labour codes.

Mphasis is also strengthening its AI capabilities through acquisitions. Its recent purchase of Canada-based Theory and Practice (TAP) is expected to enhance its offerings by combining AI with behavioural insights, adding more depth to its overall platform strategy.

Rakesh noted that this move will help the company go beyond basic automation and build systems that can better understand business goals and operate with more intelligence at scale.

Overall, the results reflect a broader shift in the IT services industry, where companies are gradually moving away from traditional growth models toward AI-driven opportunities, while still dealing with pressure in legacy businesses.

The board has recommended a final dividend of ₹62 per share for FY26, subject to shareholder approval, and also approved Rakesh’s reappointment as CEO for another five years starting October 2026.

Shares of Mphasis opened at ₹2,314.5 on the NSE, gaining nearly 3% from the previous close.

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