1QFY27 revenue in line; miss on margins: Growth to accelerate in 2QFY27F; retain Buy

研报英文原文证据摘录

1QFY27 revenue in line; miss on margins: Growth to accelerate in 2QFY27F; retain Buy

Global Markets Research

Mphasis MBFL.NS MPHL IN 24 July 2026

EQUITY: SOFTWARE & SERVICES

Rating1QFY27 revenue in line; miss on margins Remains Buy

Target price

Growth to accelerate in 2QFY27F; retain Buy Reduced from INR INR 2,620 2,640

1QFY27 – revenue in line Closing23 July 2026price INR 2,232

MPHL’s 1QFY27 revenue at USD471mn (+2.1% q-q and +8.3% y-y in constant currency or cc

terms; Fig.1) was largely in line with our estimate of 2% q-q growth. Growth was driven by the TMT Implied upside +17.4%

(Technology, Media and Telecom) vertical, up +15.5% q-q due to ramp up of recent deals, while the

Logistics vertical declined 15.7% q-q (both in cc terms) due to macro and geopolitical uncertainties. Market Cap (USD mn) 4,412.9

The EBIT margin at 14.8% was down 60bp q-q (our estimate: 15.5%). ADT (USD mn) 14.2

Strong deal pipeline driven by AI; TMT and Insurance verticals to drive growth

Relative performance chartMPHL reported deal bookings of USD461mn (+13.3% q-q, -39.3% y-y) in 1QFY27 that comprised

three large deals including one USD100mn+ deal. 63% of TCV wins were AI led. Total pipeline

grew 8% q-q and 28% y-y. It continues to guide for 2x industry growth on the back of large deal

wins, and expects high-single-digit to low-double-digit revenue growth in FY27E despite macro and

geopolitical uncertainties. Management noted that the Red Oak consolidation is baked into 2Q and

full-year guidance, and is expected to start by end of August/early September, and will not have a

full quarter impact for 2Q. Mphasis noted that it is focused on driving wallet share and market share

gains by opening new addressable spends with AI and a platform-led growth model as competition