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Key Conference Call Highlights

Segment Performance

* Direct Business: This remains the primary growth engine, contributing 98.6% of revenue and crossing an annualised run rate of USD 1.8 Bn.

* BFSI: These verticals led the growth at 13.4% QoQ in Q4. Direct BFS grew 18.6% for the full year, while Insurance saw massive momentum with 46.5% YoY growth in Direct revenues.

* Enterprise Applications: Now the core growth segment, it contributes 76.5% of total revenue and grew 14.8% YoY in CC terms.

* ITO: This segment declined 21.6% YoY, reflecting a strategic decision to scale down the non-core ATM business in favour of higher-value AI opportunities.

Geographical Performance

* United States: As the anchor market, it delivered a strong 10.7% YoY growth in Direct revenue, supported by the ramp-up of large deal wins.

* EMEA: Grew 6.9% sequentially, though YoY growth was flat at 0.8% due to revenue structuring for a large Logistics client.

* ROW: Direct revenues grew 2.6% YoY, with increased participation in globally structured deals.

Margin Trajectory

* Mphasis maintained its profitability within its stated target band of 14.75% to 15.75%. Q4 EBIT margin stood at 15.4%, a sequential expansion of 20 bps.

* Hedge Losses: These remain a headwind, with hedge losses expected to continue impacting the P&L through the first half of FY27E.

Outlook & Guidance

* Revenue Growth: The management expects high single-digit to low doubledigit growth in FY27E.

* Record TCV: The company achieved its highest-ever annual net new TCV of USD 2.1 Bn (a 68% increase YoY).

* Order Book: Pipeline is at an all-time high, having expanded 2.6 times since the launch of the AI-first strategy

AI Initiatives

* Agentic AI: Mphasis is focusing on systems that go beyond prediction to drive governed, autonomous actions across end-to-end workflows

* Continuum AI Acquisition: The acquisition of Theory and Practice integrates a modular decision intelligence platform into the Mphasis stack, moving from simple modernisation to enterprise decision transformation.

* Value Creation: The management notes that 80% of AI-driven transformation will occur outside the IT function, focussed on upgrading work rather than just systems.

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