BENGALURU: IT services firm Mphasis reported a decline in net profit for the December quarter of FY26, affected by costs linked to changes in labour laws, even as revenue recorded steady growth quarter-on-quarter.
The company reported a consolidated net profit of Rs 442 crore in Q3 FY26, down 5.7% from Rs 469 crore in the September quarter. On a year-on-year basis, net profit rose 3.4%.
The quarterly profit included an exceptional charge of Rs 35.5 crore related to the impact of changes in labour laws. Net profit before exceptional items stood at Rs 468.7 crore, largely flat sequentially and up 9.5% year-on-year.
Revenue from operations increased 2.6% quarter-on-quarter to Rs 4,002.6 crore in Q3 FY26 from Rs 3,901.9 crore in the previous quarter. On a year-on-year basis, revenue grew 12.4%. The company said revenue growth was supported by continued deal wins and traction across key verticals.
The topline growth was led by the banking and financial services segment, which rose 3.7% sequentially, and the insurance segment, which grew 9.7% over the previous quarter.
At the operating level, earnings before interest and tax (EBIT) rose 2.2% quarter-on-quarter to Rs 608.9 crore, compared with Rs 595.9 crore in Q2 FY26. Operating margin for the quarter stood at 15.2%, marginally lower than the previous quarter.
The company recorded new total contract value wins of Rs 3,809 crore during the quarter.
Commenting on the results, Nitin Rakesh, Chief Executive Officer and Managing Director, said, “We are pleased with our continued progress on all metrics around growth across the business. Our Mphasis NeoIP Artificial Intelligence (AI) platform is supersizing our pipeline and deals, paving the way for faster revenue growth and continued gains in wallet share driven wins.”