Mphasis Q1 FY27 Results (NSE: MPHASIS)
Signal: Growth reaccelerated
The read
The trajectory is revenue-positive but margin-sensitive: consolidated revenue growth accelerated to 17.5% YoY and Technology Media and Telecom profit surged 61.9%, yet PAT grew only 10.8% and declined 4.1% QoQ because Insurance segment result fell 51.9% YoY and acquired operations added pressure; the 25.5% standalone EBITDA margin versus 20% consolidated margin highlights the integration drag.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹438.41 Cr | +17.5% | +3.3% |
| EBIT | ₹73.13 Cr | N/A | |
| Net profit | ₹48.95 Cr | +10.8% | |
| EPS | ₹25.65 | +10.5% | |
| EBIT margin | 20% |
P&L walk
Consolidated revenue rose 17.5% YoY and 3.3% QoQ, but PAT growth of 10.8% lagged revenue as the group absorbed acquisition-related costs and insurance segment weakness; EBITDA margin was reported at 20%.
Segments
Technology Media and Telecom was the main earnings accelerator, with segment result up 61.9% YoY to ₹2111.63 million, while Insurance dragged the group as revenue rose 30.5% but segment result fell 51.9% to ₹857.25 million; standalone PAT of ₹459.21 Cr also materially exceeded consolidated PAT growth of 10.8%.
Key positives
- Consolidated revenue reached ₹4384.05 Cr, up 17.5% YoY and 3.3% QoQ, accelerating from 14.4% YoY in Q4FY26.
- Technology Media and Telecom segment result rose 61.9% YoY to ₹2111.63 million, with QoQ result growth of 80.7%.
- Employee costs rose 12.3% YoY versus revenue growth of 17.5%, reducing employee-cost intensity to 54.9% of revenue from approximately 57.4%.
- Standalone PAT rose 54.0% YoY to ₹459.21 Cr, and standalone EBITDA margin of 25.5% was 550bps above the consolidated 20% margin.
Key concerns
- Consolidated PAT growth of 10.8% lagged revenue growth of 17.5%, and PAT declined 4.1% QoQ to ₹489.51 Cr.
- Insurance segment result fell 51.9% YoY to ₹857.25 million despite revenue growth of 30.5%, indicating material margin pressure in the segment.
- TAP contributed ₹9.04 million of revenue but generated a ₹149.50 million loss in the quarter, adding to consolidated earnings drag from acquisitions.
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