Mphasis Limited (MPHASIS) AI Stock Analysis

• Market Cap: ₹551.02B
• Dividend Yield: 1.97%
• Average Volume (3M): 15.07K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.68
• Revenue Growth: 8.73%
• EPS Growth: 11.33%
• Country: IN
• Employees: 24,518
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 24.70
• Shares Outstanding: 190,557,170
• 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: ₹3,046.67
• Price Target Upside: 5.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹3,081.00 ▲(6.55% Upside)

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

Revenue Growth

Mphasis' consistent revenue growth reflects its ability to expand market reach and enhance product adoption, supporting long-term business stability.

Partnerships

Strategic partnerships with leading tech firms enhance Mphasis' service offerings and competitive position, driving sustainable revenue growth.

Profitability

High profit margins indicate efficient operations and strong cost management, contributing to Mphasis' financial health and competitive advantage.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow could limit Mphasis' ability to invest in growth opportunities and manage financial obligations effectively.

Growth in EBITDA Margin

Limited growth in EBITDA margin suggests potential inefficiencies that may impact profitability and operational performance over time.

Leverage for Growth

While low leverage indicates stability, it may also imply underutilization of debt for growth, potentially limiting expansion capabilities.

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 generates revenue through a diversified model that includes various streams such as IT services, consulting, and business process outsourcing. The company's core revenue comes from its application services, which encompass software development and application management, and its infrastructure services, which provide managed IT services and cloud solutions. Additionally, Mphasis earns income from its business process services that streamline operations for clients in different industries. Significant partnerships with major technology firms, such as Amazon Web Services and Microsoft, enhance its service offerings and contribute to revenue growth. The company also focuses on long-term contracts with clients, ensuring steady cash flow and recurring revenue streams.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 2891.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MPHASIS, the sentiment is Positive. The current price of 2891.6 is above the 20-day moving average (MA) of 2860.47, above the 50-day MA of 2810.14, and above the 200-day MA of 2649.91, indicating a bullish trend. The MACD of 25.80 indicates Positive momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MPHASIS.

Mphasis Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COFORGE	73 Outperform	₹617.90B	52.74	―	0.85%	41.97%	38.73%
MPHASIS	73 Outperform	₹551.02B	30.77	―	1.97%	8.73%	11.33%
KPITTECH	69 Neutral	₹335.65B	43.07	―	0.69%	13.34%	5.98%
TATAELXSI	66 Neutral	₹337.16B	50.27	―	1.39%	-1.19%	-17.92%
LTTS	62 Neutral	₹478.41B	37.41	―	1.24%	14.88%	-2.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEJASNET	54 Neutral	₹79.66B	-19.68	―	0.56%	-17.23%	-185.73%

Mphasis Limited Corporate Events

Mphasis Limited Grants 5,000 Stock Options to Employee

Mphasis Limited has announced the grant of 5,000 stock options to an identified employee under its Employee Stock Option Plan 2016. This move, effective from December 3, 2025, is part of the company’s strategy to incentivize its workforce, potentially enhancing employee retention and aligning their interests with shareholder value. The options, priced at ₹2,700 each, will vest over five years and are exercisable within 60 months from the vesting date, reflecting Mphasis’s commitment to long-term growth and employee engagement.

Mphasis Limited Grants 5,000 Stock Options to Key Employee

Mphasis Limited has announced the grant of 5,000 stock options to an identified employee under its Employee Stock Option Plan 2016. The options, priced at ₹2,700 each, will vest over five years and are exercisable within 60 months from the vesting date. This move is part of Mphasis’s strategy to incentivize and retain key talent, potentially impacting the company’s operational dynamics and aligning employee interests with shareholder value.

Mphasis Limited Announces Exercise of Employee Stock Options and RSUs

Mphasis Limited has announced the exercise of 102,556 employee stock options and restricted stock units, as approved by the ESOP Compensation Committee. The shares were allotted under the Employee Stock Options Plan 2016 and Restricted Stock Units Plan 2021. The Mphasis Employees Equity Reward Trust and Mphasis Employees Benefit Trust will deduct shares to cover exercise prices and taxes, using proceeds to repay company loans and taxes, following shareholder approvals.

Mphasis Achieves Notable ESG Score from S&P Global

Mphasis Limited has received a Corporate Sustainability Assessment Score of 73 out of 100 from S&P Global for the year 2025. This rating reflects the company’s commitment to environmental, social, and governance (ESG) practices, potentially strengthening its reputation and positioning in the industry while offering insights into its sustainability efforts to stakeholders.

Mphasis Clarifies Non-Involvement in Blackstone Stake Sale Rumors

Mphasis Limited has clarified that it is not involved in a rumored transaction where Blackstone Group is reportedly planning to reduce its stake in the company through a large block deal. The company has reached out to its promoter, BCP Topco IX Pte. Ltd., for more information and stated that no material event necessitating disclosure under SEBI regulations has occurred at this time.

Mphasis Clarifies Non-Involvement in Blackstone’s Stake Sale

Mphasis Limited has clarified that it is not involved in any transaction related to the news about Blackstone Group’s intention to reduce its stake in the company through a large block deal. The company emphasized that this potential transaction involves its promoter, BCP Topco IX Pte. Ltd., a part of Blackstone Group, and not Mphasis itself. Mphasis stated that there is no material information requiring disclosure under SEBI regulations at this time, but it will comply with disclosure requirements as necessary.

Mphasis Limited Announces Investor Presentation for Q3 2025 Results

Mphasis Limited has announced an investor presentation related to its financial results for the quarter and half-year ending September 30, 2025. This presentation is part of an investor and analyst call scheduled for October 31, 2025. The announcement reflects Mphasis’s ongoing commitment to transparency and engagement with stakeholders, potentially impacting investor confidence and market positioning.

Mphasis Achieves ISO/IEC 42001:2023 Certification for AI Management Systems

Mphasis Limited has achieved the ISO/IEC 42001:2023 certification for Artificial Intelligence Management Systems, accredited by TÜV SÜD South Asia Private Limited. This certification underscores Mphasis’ dedication to responsible AI innovation, ensuring that its AI solutions meet the highest global standards of integrity and compliance. The achievement is expected to enhance trust and reduce risks in AI adoption, aligning with increasing regulatory scrutiny and customer expectations. As a result, Mphasis has seen a significant rise in AI-led deals, now representing 68% of its total new contract wins, indicating a strong market demand for its AI-driven solutions.

Mphasis Unveils NeoIP™: A Unified AI Platform for Enterprise Transformation

Mphasis Limited has launched NeoIP™, a unified AI platform designed to facilitate continuous enterprise transformation by integrating multiple innovative AI solutions. This platform, which leverages an Ontology-Powered Knowledge Graph called Ontosphere, aims to optimize and modernize business and IT operations, offering significant efficiency gains and reduced incident resolution times. NeoIP™ enables organizations to evolve continuously, automating complex decisions and fostering a collaborative environment between AI and human teams. By redefining traditional enterprise transformation models, NeoIP™ positions Mphasis as a leader in intelligent, secure, and scalable enterprise technology.

Mphasis Limited Unaffected by U.S. H1B Visa Fee Increase

Mphasis Limited announced that the recent U.S. proclamation imposing a $100,000 fee on new H1B visa petitions will not significantly impact its financials or operations. The company has a low volume of H1B filings and has been focusing on AI-led deals, enhancing system resiliency, and increasing local hiring to maintain business continuity.