Quick Note - Mphasis (MPHL IN) (Buy) - Gearing up for AI-led future

Research evidence excerpt

Quick Note - Mphasis (MPHL IN) (Buy) - Gearing up for AI-led future

Global Markets Research

Mphasis MBFL.NS MPHL IN 28 May 2026

EQUITY: SOFTWARE & SERVICES

RatingGearing up for AI-led future Remains Buy

Target price INR 2,620 RemainsQuick Note

Closing price

We attended Mphasis’ analyst day on 27 May. We present our key takeaways: 28 May 2026 INR 2,233

Mphasis is focusing on “agency model” to win in the AI world

Mphasis’ CEO noted that the big opportunity for players like itself lies in moving from technology

implementation (as in the past) to business transformation (in the future). Mphasis is focusing on an Research Analysts

“enterprise agency model” of delivering measurable business outcomes to its enterprise clients, which will India Technology/Services &

include decisions and actions with strong governance. The four key pillars of this model include: Software

Abhishek Bhandari, CFA - NFASL

1. AI-first platform – focus is to use the AI-platform in every client engagement and delivery. abhishek.bhandari@nomura.com

+91 22 403 74120

2. FES operating model – having Forward Deployed Engineering & Solutions group in one unified

organisation for client engagements. Karan Nain - NFASL

karan.nain@nomura.com

3. Annual recurring revenue (ARR) transformation – progressive shift from bespoke effort to platform +91 22 676 26540

subscription and attach. As per Mphasis, an increase in the reuse and attach rates would serve as

leading performance indicators with margin expansion in the future. Currently, this is in single-digit

percent of Mphasis’ total revenues. It intends to share these metrics from early FY28E.

4. Creating Enterprise Agency category – this approach is neither a pure service nor a pure software

model. Mphasis has launched its Tria platform to create this category.