Mphasis Limited (MPHASIS) AI Stock Analysis

• Market Cap: ₹512.61B
• Dividend Yield: 2.11%
• Average Volume (3M): 15.07K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 1.72
• Revenue Growth: 8.11%
• EPS Growth: 10.73%
• Country: IN
• Employees: 24,518
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 23.14
• Shares Outstanding: 190,261,020
• 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: ₹3,034.30
• Price Target Upside: 12.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: ₹2,910.00 ▲(8.01% Upside)

Mphasis Limited's overall stock score reflects strong financial performance, which is the most significant factor. However, technical analysis indicates potential bearish momentum, and valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.

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 robust revenue growth and profit margins, while the balance sheet reflects low leverage and a solid equity base. Cash flow metrics are strong, though sustaining free cash flow growth could enhance performance further.

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: Negative
• Last Price: 2694.25
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 2694.25 is below the 20-day moving average (MA) of 2761.36, below the 50-day MA of 2802.96, and above the 200-day MA of 2630.29, indicating a neutral trend. The MACD of -19.64 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 29.22 is Neutral, 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
COFORGE	66 Neutral	₹580.41B	58.18	―	0.89%	44.02%	18.92%
KPITTECH	66 Neutral	₹313.69B	38.50	―	0.74%	17.09%	21.20%
MPHASIS	66 Neutral	₹512.61B	29.38	―	2.11%	8.11%	10.73%
TATAELXSI	65 Neutral	₹334.47B	49.87	―	1.40%	-1.19%	-17.92%
LTTS	62 Neutral	₹439.90B	34.40	―	1.33%	14.88%	-2.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEJASNET	60 Neutral	₹104.36B	56.75	―	0.42%	-17.23%	-185.73%

Mphasis Limited Corporate Events

Mphasis Limited Announces Exercise of Stock Options and RSUs

Mphasis Limited has announced the exercise of 145,180 Employee Stock Options (ESOPs) and 2,327 Restricted Stock Units (RSUs) as part of its Employee Stock Options Plan 2016 and RSU Plan 2021. The exercise of these options reflects the company’s ongoing commitment to employee incentives and aligns with shareholder-approved schemes to manage the financial aspects of these exercises, including the deduction of shares to cover exercise prices and taxes. This move is likely to impact the company’s financial structure and employee engagement positively.