Mphasis Limited (MPHASIS) AI Stock Analysis

• Market Cap: ₹405.22B
• Dividend Yield: 1.94%
• Average Volume (3M): 15.07K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 1.56
• Revenue Growth: 8.73%
• EPS Growth: 11.33%
• Country: IN
• Employees: 24,518
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 23.13
• Shares Outstanding: 190,667,900
• 10 Day Avg. Volume: 21,232
• 30 Day Avg. Volume: 15,071
• PEG Ratio: 3.03
• Price to Book (P/B): 4.84
• Price to Sales (P/S): 3.28
• P/FCF Ratio: 25.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,033.33
• Price Target Upside: 8.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 98.48
• Revenue Forecast (FY): ₹158.35B

• Rating: 73 Outperform
• Price Target: ₹2,368.00 ▼(-15.66% Downside)
• Action: Upgraded Date: 11/01/25
• Date: Action: Upgraded 11/01/25

Mphasis Limited's overall stock score is driven by its strong financial performance, characterized by high profitability and efficient operations. Technical analysis presents mixed signals, with the stock trading slightly below short-term moving averages but showing a positive MACD. Valuation is moderate, with a relatively high P/E ratio balanced by a decent dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

High Profitability & Margins

Sustained high gross and EBIT margins indicate durable operational efficiency and pricing power in services delivery. For an IT-services firm this supports long-term cash generation, funds reinvestment into digital capabilities, and resilience to cost pressures across client engagements.

Low Leverage / Strong Equity Base

Low leverage and a high equity ratio provide financial flexibility to fund organic investment, pursue selective M&A, and absorb cyclical shocks. A healthy ROE indicates effective capital use, reducing refinancing risk and sustaining long-term strategic initiatives.

Solid Cash Generation

Strong cash conversion (OCF and FCF near or above net income) underpins dividend capacity, capex funding, and strategic spending on cloud/digital capabilities. Reliable cash flow is a durable strength for service firms with recurring managed-service revenue.

Negative Factors

Moderate Revenue Growth

Mid-single-digit revenue growth may limit scale advantages and make it harder to fund aggressive investments in higher-growth digital segments. In a competitive IT services market, slower topline expansion can pressure long-term market share and reduce leverage on fixed-cost base.

Client Concentration Risk

Heavy reliance on a few large enterprise and financial-services clients increases revenue volatility if key contracts are renegotiated or not renewed. Sector cyclicality in banking/insurance can amplify revenue swings and constrain long-term predictability of managed-services fees.

Slight Decline in Free Cash Flow / Margin Expansion Focus

A recent dip in free cash flow and the note that EBITDA margin growth needs focus suggest timing or mix headwinds. Persisting FCF pressures would constrain discretionary investments, dividends or deal-making, and could signal underlying margin mix challenges in transformation projects.

Mphasis Limited Business Overview & Revenue Model

Company Description

Mphasis Limited operates as an information technology solutions provider that specializes in cloud and cognitive services worldwide. The company operates through Banking and Financial Service; Logistics and transportation; Technology Media and Telecom; Insurance; and Others segments. It offers application, blockchain, business process, cognitive, cyber security, DevOps, digital, enterprise automation, design, infrastructure, modernization, data, product engineering, and cloud, as well as governance, risk, and compliance services. The company serves banking and capital markets, asset management, corporate banking, investment banking, mortgage, retail banking, and wealth management and brokerage industries, as well as insurance, healthcare and life sciences, payments, hospitality, travel and transportation, communications, energy and utilities, logistics, manufacturing, oil and gas, and public sectors. Mphasis Limited was incorporated in 1992 and is based in Bengaluru, India.

How the Company Makes Money

Mphasis makes money primarily by providing IT services to enterprise customers under a mix of time-and-materials and fixed-price engagements, and through longer-term managed services contracts. Key revenue streams typically include: (1) Application services (building, integrating, modernizing, testing, and maintaining software applications), billed by project scope, milestones, or staffing hours; (2) Infrastructure and cloud services (operating, monitoring, migrating, and optimizing client infrastructure and cloud environments), commonly billed as recurring managed service fees; (3) Digital and data services (analytics, AI/ML, automation, and digital experience/engineering work), billed as consulting-led transformation programs and implementation projects; and (4) Business process and operations-oriented services, where applicable, billed as transaction-based or outcome-/SLA-linked fees. Earnings are driven by (a) scale and utilization of delivery teams (often in offshore/nearshore delivery centers), (b) rate realization and contract mix (managed services and transformation programs can provide recurring or higher-value revenue), and (c) concentration in large enterprise accounts, especially in financial services, where multi-year modernization and operations contracts can be material. Specific partnership terms, client names, and the exact share of revenue by service line or industry are null.

Mphasis Limited Financial Statement Overview

Summary

Mphasis Limited demonstrates strong financial health with high profitability and efficient operations. The income statement shows notable revenue growth and robust profit margins. The balance sheet reflects a healthy financial position with low leverage and a strong equity base. Cash flow metrics indicate good cash management despite a slight decline in free cash flow.

Income Statement

The income statement displays strong performance with a notable revenue growth rate of 7.17% from 2024 to 2025. Gross profit margin is high at 42.76%, and the net profit margin is robust at 11.96%. EBIT margin is a remarkable 42.76%, indicating efficient operations. These metrics suggest strong profitability and efficient cost management, though the growth in EBITDA margin could be a focus area for improvement.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.20, indicating low leverage. The equity ratio is 64.58%, showing a strong reliance on equity financing. Return on equity is relatively good at 17.68%, pointing to effective use of shareholders' funds. The company's low debt levels and solid equity base contribute to financial stability, although more aggressive growth could be pursued leveraging this position.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow, with a reduction from 2024 to 2025. However, the company has a strong free cash flow to net income ratio of 1.08, and a high operating cash flow to net income ratio of 1.12, reflecting strong cash generation relative to earnings. Despite the decrease in free cash flow growth, the company maintains robust cash flow metrics, indicating good cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	145.40B	142.30B	132.79B	137.98B	119.61B	97.22B
Gross Profit	62.72B	60.73B	53.38B	57.09B	49.13B	40.82B
EBITDA	27.31B	24.45B	20.47B	22.45B	19.46B	16.35B
Net Income	17.39B	17.02B	15.55B	16.38B	14.31B	12.17B
Balance Sheet
Total Assets	163.63B	149.07B	141.30B	116.09B	107.56B	93.99B
Cash, Cash Equivalents and Short-Term Investments	35.98B	33.97B	34.10B	24.22B	23.89B	26.39B
Total Debt	19.83B	18.88B	23.89B	10.53B	12.52B	11.81B
Total Liabilities	61.69B	52.78B	53.36B	36.75B	38.13B	28.72B
Stockholders Equity	101.94B	96.28B	87.95B	79.35B	69.43B	65.27B
Cash Flow
Free Cash Flow	15.57B	18.43B	20.86B	13.49B	15.96B	13.28B
Operating Cash Flow	15.98B	19.05B	21.80B	14.62B	17.16B	14.55B
Investing Cash Flow	2.54B	440.58M	-24.82B	1.82B	-2.82B	-8.22B
Financing Cash Flow	-16.34B	-17.56B	770.75M	-14.40B	-13.89B	-8.61B

Mphasis Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2807.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MPHASIS, the sentiment is Negative. The current price of 2807.75 is above the 20-day moving average (MA) of 2233.43, above the 50-day MA of 2532.44, and above the 200-day MA of 2717.13, indicating a bearish trend. The MACD of -121.27 indicates Negative momentum. The RSI at 28.15 is Positive, neither overbought nor oversold. The STOCH value of 19.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MPHASIS.

Mphasis Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATAELXSI	74 Outperform	₹262.03B	74.95	―	1.38%	-1.19%	-17.92%
MPHASIS	73 Outperform	₹405.22B	30.05	―	1.94%	8.73%	11.33%
KPITTECH	66 Neutral	₹189.19B	59.84	―	0.69%	13.34%	5.98%
COFORGE	63 Neutral	₹380.13B	55.81	―	0.88%	41.97%	38.73%
LTTS	62 Neutral	₹356.18B	39.06	―	1.19%	14.88%	-2.60%
TEJASNET	62 Neutral	₹79.98B	-10.28	―	0.55%	-17.23%	-185.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Mphasis Limited Corporate Events

Mphasis Announces Resignation of North America Enterprise President

Mphasis Limited has announced that Mr. Elango R has resigned from his role as President – Enterprise 5, North America, and consequently ceased to be part of the company’s senior management personnel effective 31 January 2026. The company has notified the stock exchanges in compliance with SEBI’s disclosure regulations, signaling a leadership change in its North American enterprise business segment, though no successor or additional strategic implications were disclosed.

Mphasis Publishes Investor Call Audio on Q3 FY26 Results

Mphasis Limited has announced that the audio recording of its investor and analyst call discussing the financial results for the quarter ended 31 December 2025 is now available on the company’s website. The disclosure, made under SEBI’s listing regulations, underscores Mphasis’s ongoing commitment to transparent communication and timely information sharing with capital market participants and other stakeholders.

Mphasis to Legally Contest GST Penalty Imposed by Karnataka Tax Authority

Mphasis Limited has disclosed that it received an order from the Office of the Deputy Commissioner of Commercial Taxes, Large Taxpayer Unit-1, Bangalore, imposing a penalty of ₹3,290,801 under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017. The penalty relates to alleged non-remittance of GST on sales marketing and support services, non-realisation of foreign remittances against exports, incorrect availing of ineligible input tax credit, and related interest. The company has stated it does not accept the order and will contest it through legal channels, asserting it has reasonable grounds to succeed on appeal and that the tax demand, including interest and penalties, is not expected to have any material financial or operational adverse impact on its business.