IT services firm Mphasis reported a 14% year-on-year rise in net profit for the March quarter, supported by strong deal wins led by artificial intelligence.
The company posted a consolidated net profit of Rs 509.6 crore for Q4FY26, compared with Rs 446.5 crore a year earlier. Revenue rose 14.4% year-on-year and 6% sequentially to Rs 4,242.7 crore. In constant currency terms, revenue grew 2.5% sequentially and 7.1% year-on-year.
For the full year, revenue grew 11.6% to Rs 15,879.6 crore, while net profit rose to Rs 1,862.6 crore from Rs 1,702.1 crore in FY25.
The company reported total contract value wins of $2.1 billion in FY26, up 68% year-on-year, with nearly 60% of these deals being AI-led. In the March quarter alone, it signed deals worth $407 million, of which 64% were driven by AI.
“The value of true AI lies not in isolated use cases, but in systematically embedding intelligence at scale across applications, processes, and decision flows. This shift is enabling enterprises to re-architect themselves around what we describe as agentic AI, systems that are not only predictive, but capable of driving decisions and actions in a governed, autonomous manner,” Chief Executive Officer and Managing Director Nitin Rakesh said during the quarterly earnings call.
He added that the company is seeing a shift among enterprises from experimentation to large-scale deployment of AI initiatives.
Operating margin for the quarter stood at 15.4%, expanding 20 basis points sequentially and 10 basis points year-on-year. For the full year, operating margin remained flat at 15.3%.
The banking and financial services segment remained the largest contributor, generating Rs 2,303.3 crore in quarterly revenue. This was followed by technology, media and telecom at Rs 689.4 crore, and insurance at Rs 679.1 crore.
Mphasis continued to invest in AI capabilities through acquisitions, including the recent purchase of Canada-based Theory and Practice (TAP), which offers a decision intelligence platform combining AI with behavioural economics. The company said this would strengthen its Neo platform strategy.
“Our recent acquisition of TAP creates a combination that allows us to move beyond task automation, towards systems that can reason over business objectives, constraints, and domain context, using AI at scale,” Rakesh said.
The developments come amid a wider shift in the IT services sector, where firms are moving away from headcount-led growth towards AI-driven revenue models, while managing pricing pressure in traditional services.
The board recommended a final dividend of Rs 62 per share for FY26, subject to shareholder approval. It also approved the reappointment of Nitin Rakesh as CEO for a further five-year term starting October 2026.