Mphasis (526299) Q4 24/25 earnings summary

Executive summary

• Achieved highest sequential revenue growth in three years, led by BFS and TMT, with strong AI-led deal momentum and record TCV wins of $390M in Q4 FY25, the highest in seven quarters.

• AI-led deals now constitute 65% of the pipeline and 59% of Q4 TCV, reflecting strategic investments in AI platforms and solutions.

• Insurance vertical emerged as a growth engine, with strong TCV and pipeline for FY26.

• Direct revenue for FY25 increased 7.6% YoY to INR 136.6 billion; new TCV wins of USD 1.27 billion.

• Board recommended a final dividend of INR 57 per share for FY25, pending shareholder approval.

Financial highlights

• Q4 FY25 revenue was $430 million, up 2.9% sequentially and 5.4% year-over-year in constant currency.

• FY25 revenue grew 6.7% YoY to INR 142.2 billion; net profit up 9.5% to INR 17,021 million.

• EBIT/operating margin stable at 15.3% for Q4 and FY25; operating profit grew 3.9% sequentially and 11.7% YoY.

• EPS reached INR 23.5 in Q4 and 89.9 for FY25, both record highs.

• Operating cash flow was $52 million in Q4, 100% of net income; cash and cash equivalents at year-end INR 9,863 million.

Outlook and guidance

• Expect above-industry revenue growth in FY26, driven by strong TCV wins and robust pipeline conversion.

• Target EBIT margin band set at 14.75%-15.75%, maintaining flexibility for investments and large deal ramp-ups.

• Continued focus on AI-led offerings, micro-level execution, and growth investments amid macro uncertainties.