Mphasis Limited (MPHASIS) AI Stock Analysis

• Market Cap: ₹526.28B
• Dividend Yield: 2.08%
• Average Volume (3M): 15.07K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 1.70
• Revenue Growth: 8.73%
• EPS Growth: 11.33%
• Country: IN
• Employees: 24,518
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 24.70
• Shares Outstanding: 190,261,020
• 10 Day Avg. Volume: 21,232
• 30 Day Avg. Volume: 15,071
• PEG Ratio: 3.03
• Price to Book (P/B): 4.84
• Price to Sales (P/S): 3.28
• P/FCF Ratio: 25.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,053.30
• Price Target Upside: 11.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹3,081.00 ▲(12.47% Upside)

Mphasis Limited's overall stock score is driven by its strong financial performance, characterized by high profitability and efficient operations. Technical analysis presents mixed signals, with the stock trading slightly below short-term moving averages but showing a positive MACD. Valuation is moderate, with a relatively high P/E ratio balanced by a decent dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Mphasis Limited Business Overview & Revenue Model

Company Description

Mphasis Limited (MPHASIS) is a leading global provider of IT services and solutions, specializing in cloud and cognitive services, application development, and business process outsourcing. The company operates primarily in the banking, financial services, insurance, healthcare, and logistics sectors, delivering innovative technology solutions that enhance operational efficiency and customer experience. Mphasis leverages its expertise in digital transformation to offer a range of services, including infrastructure services, cybersecurity, and analytics.

How the Company Makes Money

Mphasis generates revenue through a diversified model that includes various streams such as IT services, consulting, and business process outsourcing. The company's core revenue comes from its application services, which encompass software development and application management, and its infrastructure services, which provide managed IT services and cloud solutions. Additionally, Mphasis earns income from its business process services that streamline operations for clients in different industries. Significant partnerships with major technology firms, such as Amazon Web Services and Microsoft, enhance its service offerings and contribute to revenue growth. The company also focuses on long-term contracts with clients, ensuring steady cash flow and recurring revenue streams.

Mphasis Limited Financial Statement Overview

Summary

Mphasis Limited demonstrates strong financial health with high profitability and efficient operations. The income statement shows notable revenue growth and robust profit margins. The balance sheet reflects a healthy financial position with low leverage and a strong equity base. Cash flow metrics indicate good cash management despite a slight decline in free cash flow.

Income Statement

The income statement displays strong performance with a notable revenue growth rate of 7.17% from 2024 to 2025. Gross profit margin is high at 42.76%, and the net profit margin is robust at 11.96%. EBIT margin is a remarkable 42.76%, indicating efficient operations. These metrics suggest strong profitability and efficient cost management, though the growth in EBITDA margin could be a focus area for improvement.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.20, indicating low leverage. The equity ratio is 64.58%, showing a strong reliance on equity financing. Return on equity is relatively good at 17.68%, pointing to effective use of shareholders' funds. The company's low debt levels and solid equity base contribute to financial stability, although more aggressive growth could be pursued leveraging this position.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow, with a reduction from 2024 to 2025. However, the company has a strong free cash flow to net income ratio of 1.08, and a high operating cash flow to net income ratio of 1.12, reflecting strong cash generation relative to earnings. Despite the decrease in free cash flow growth, the company maintains robust cash flow metrics, indicating good cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	145.40B	142.30B	132.79B	137.98B	119.61B	97.22B
Gross Profit	62.72B	60.73B	53.38B	57.09B	49.13B	40.82B
EBITDA	27.31B	24.45B	20.47B	22.45B	19.46B	16.35B
Net Income	17.39B	17.02B	15.55B	16.38B	14.31B	12.17B
Balance Sheet
Total Assets	163.63B	149.07B	141.30B	116.09B	107.56B	93.99B
Cash, Cash Equivalents and Short-Term Investments	35.98B	33.97B	34.10B	24.22B	23.89B	26.39B
Total Debt	19.83B	18.88B	23.89B	10.53B	12.52B	11.81B
Total Liabilities	61.69B	52.78B	53.36B	36.75B	38.13B	28.72B
Stockholders Equity	101.94B	96.28B	87.95B	79.35B	69.43B	65.27B
Cash Flow
Free Cash Flow	15.57B	18.43B	20.86B	13.49B	15.96B	13.28B
Operating Cash Flow	15.98B	19.05B	21.80B	14.62B	17.16B	14.55B
Investing Cash Flow	2.54B	440.58M	-24.82B	1.82B	-2.82B	-8.22B
Financing Cash Flow	-16.34B	-17.56B	770.75M	-14.40B	-13.89B	-8.61B

Mphasis Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2739.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MPHASIS, the sentiment is Negative. The current price of 2739.3 is below the 20-day moving average (MA) of 2788.83, below the 50-day MA of 2816.60, and above the 200-day MA of 2629.72, indicating a neutral trend. The MACD of -3.84 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MPHASIS.

Mphasis Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPHASIS	73 Outperform	₹526.28B	29.44	―	2.08%	8.73%	11.33%
KPITTECH	69 Neutral	₹316.65B	38.87	―	0.74%	17.09%	21.20%
TATAELXSI	68 Neutral	₹334.97B	49.94	―	1.45%	-1.19%	-17.92%
COFORGE	66 Neutral	₹591.42B	50.53	―	0.90%	41.97%	38.73%
LTTS	62 Neutral	₹433.82B	33.92	―	1.37%	14.88%	-2.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEJASNET	54 Neutral	₹92.42B	―	―	0.48%	-17.23%	-185.73%

Mphasis Limited Corporate Events

Mphasis Limited Announces Investor Presentation for Q3 2025 Results

Mphasis Limited has announced an investor presentation related to its financial results for the quarter and half-year ending September 30, 2025. This presentation is part of an investor and analyst call scheduled for October 31, 2025. The announcement reflects Mphasis’s ongoing commitment to transparency and engagement with stakeholders, potentially impacting investor confidence and market positioning.

Mphasis Achieves ISO/IEC 42001:2023 Certification for AI Management Systems

Mphasis Limited has achieved the ISO/IEC 42001:2023 certification for Artificial Intelligence Management Systems, accredited by TÜV SÜD South Asia Private Limited. This certification underscores Mphasis’ dedication to responsible AI innovation, ensuring that its AI solutions meet the highest global standards of integrity and compliance. The achievement is expected to enhance trust and reduce risks in AI adoption, aligning with increasing regulatory scrutiny and customer expectations. As a result, Mphasis has seen a significant rise in AI-led deals, now representing 68% of its total new contract wins, indicating a strong market demand for its AI-driven solutions.

Mphasis Unveils NeoIP™: A Unified AI Platform for Enterprise Transformation

Mphasis Limited has launched NeoIP™, a unified AI platform designed to facilitate continuous enterprise transformation by integrating multiple innovative AI solutions. This platform, which leverages an Ontology-Powered Knowledge Graph called Ontosphere, aims to optimize and modernize business and IT operations, offering significant efficiency gains and reduced incident resolution times. NeoIP™ enables organizations to evolve continuously, automating complex decisions and fostering a collaborative environment between AI and human teams. By redefining traditional enterprise transformation models, NeoIP™ positions Mphasis as a leader in intelligent, secure, and scalable enterprise technology.

Mphasis Limited Unaffected by U.S. H1B Visa Fee Increase

Mphasis Limited announced that the recent U.S. proclamation imposing a $100,000 fee on new H1B visa petitions will not significantly impact its financials or operations. The company has a low volume of H1B filings and has been focusing on AI-led deals, enhancing system resiliency, and increasing local hiring to maintain business continuity.

Mphasis Launches ‘Saksham Niveshak’ Campaign to Aid Shareholders

Mphasis Limited has launched a 100-day campaign named ‘Saksham Niveshak’ to assist shareholders in updating their Know Your Customer (KYC) details and claiming any unpaid or unclaimed dividends from the past seven financial years. This initiative aims to prevent the transfer of such dividends and related shares to the Investor Education and Protection Fund Authority (IEPFA), thereby safeguarding shareholder interests and ensuring compliance with the Ministry of Corporate Affairs’ directive.