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Mphasis’ revenue grew 2.6% quarter-on-quarter to ₹4,002.6 crore and 12.4% year-on-year on a reported basis and 7.4% year-on-year in constant currency.
Bengaluru-headquartered mid-sized IT services company Mphasis, which reported steady performance in the December quarter (Q3 FY26), says it is looking at steady growth, driven by demand in core verticals and growing traction for its AI-led, platform-driven offerings.
Mphasis’ revenue grew 2.6 per cent quarter-on-quarter (q-o-q) to ₹4,002.6 crore and 12.4 per cent year-on-year (y-o-y) on a reported basis and 7.4 per cent y-o-y in constant currency (CC). Quarterly net profit declined by about 4.7 per cent to ₹442.2 crore mainly due to ‘one-time costs.’
The company said demand has remained stable across banking, financial services and insurance (BFSI) and technology, while logistics has shown early signs of recovery. According to Prabhudas Lilladher, the management noted that BFSI demand continues to accelerate, supported by healthy bank earnings, regulatory programmes and elevated mergers and acquisitions (M&A) and initial public offering (IPO) activity. Banks are increasingly investing in enterprise-wide AI fabrics, modernisation and large-scale transformation initiatives.
Elara Securities, in its post-results commentary, noted that management said enterprises are shifting away from traditional effort-based managed services and reallocating budgets toward AI-led modernisation and efficiency programmes. While discretionary IT spending may not return to prior levels, demand for AI stacks and platforms is rising, benefiting vendors with strong AI execution capabilities.
Mphasis said enterprises are moving beyond pilot projects to scale AI use cases in application modernisation, data engineering and intelligent automation. While much of the industry has focused on using generative AI (Gen-AI) to write software faster, it has been ignoring deeper challenges. Nitin Rakesh, CEO and MD of Mphasis, said, “Everybody was so focused on using Gen-AI to write new software. Nobody was focusing on solving hard, complex problems.” These include addressing the massive technical debt in legacy systems. Legacy systems and technical debt are the underlying challenges of older technology systems that many enterprises, such as banks and insurance companies, still rely on today.
The company’s strategy focuses on embedding AI across platforms, rather than offering it as a standalone service. Clients are seeking outcomes-led engagements in which AI improves productivity, accelerates decision-making and reduces operational friction.
On talent, Mphasis continues to moderate hiring while selectively investing in data science, cloud engineering and domain-led consulting roles, maintaining margin discipline, Rakesh noted. The company had 31,272 employees at the end of the third quarter.
Published on January 25, 2026