Mphasis Books $466M in New Deals, 66% of Them AI-Led

Mphasis booked USD 466 million in new contract wins in its second quarter of FY27, and 66% of that total contract value was classified as AI-led. The Indian IT services firm reported the figures on 9th November 2026, alongside a 17.4% year-on-year rise in quarterly revenue that places it among the faster-growing players in a sector still searching for its AI-era footing.

The numbers matter beyond one company's quarterly scorecard. They offer a concrete read on where enterprise clients are actually spending: not just on AI pilots, but on projects that stitch technology upgrades into operational change. Financial services, telecommunications, technology and healthcare dominated the win list. That mix tells you AI demand is pulling through older modernisation work rather than replacing it.

What did the headline numbers show?

Earnings per share rose 19.2% from a year earlier to ₹29.4. Revenue increased 4.5% from the previous quarter on a reported basis.

In US dollar terms, revenue grew 9.2% year on year and 3.2% quarter on quarter. On a constant-currency basis, the figures were 9.7% and 3.3% respectively — a small gap that points to currency tailwinds doing some, but not most, of the work.

Direct revenue, which Mphasis reports separately from its total, grew faster than the headline. It increased 10.7% year on year in US dollar terms and 11.3% in constant currency. Quarter on quarter, direct revenue rose 3.4% in dollar terms and 3.5% in constant currency. For a services firm, direct revenue growth outpacing total revenue usually signals a strengthening core business rather than growth borrowed from partnerships or pass-through arrangements.

How much of the new business is AI?

Two-thirds of the quarter's USD 466 million in total contract value wins — 66% — was AI-led. That is the single most quoted figure from the results, and it anchors the company's argument that AI has moved from experiment to revenue line.

CEO and Managing Director Nitin Rakesh framed the strategy in platform terms. "We are building a platform-first thesis, that makes AI adoption at scale real for large enterprises," Rakesh said. "Our Mphasis Tria™ led business modernisation and business reimagine are emerging as big themes that continue to drive pipeline and wins, unlocking budgets beyond the technology functions, as it widens the set of challenges we can solve for clients."

That last clause deserves attention. Budgets unlocked beyond technology functions mean AI-led deals are reaching into business operations — the kind of spending that tends to be larger and stickier than IT-department line items.

The commercial pipeline backs the claim. Total pipeline reached a new high, rising 4.4% sequentially and 23% year on year, the company said.

What happened to margins?

Margins told a more mixed story than the top line. Gross margin stood at 27.1%, up 20 basis points from the previous quarter but down 100 basis points from a year earlier.

Operating margin was 14.8% — flat versus the prior quarter and 50 basis points lower year on year. The annual decline suggests the firm is still paying for the investments, pricing pressure or wage costs that AI-led wins have not yet fully offset.

Net margin improved to 12.2%, up 100 basis points quarter on quarter and 20 basis points from a year earlier. In plain terms: the company converted revenue into profit more efficiently at the bottom line, even while operating profitability slipped.

Who are the new clients?

The quarter's wins span four sectors, and each deal sketches a different version of the same demand pattern.

• Financial services. A large broker-dealer selected Mphasis as a strategic partner to scale its advisor administration business. The work covers front- and middle-office functions and uses a recurring revenue-sharing model that could expand across a wider advisor ecosystem.
• Technology. A technology client awarded Mphasis a multi-year contract for enterprise technology services spanning SAP, Oracle, Azure monitoring, and testing and automation. The engagement supports both modernisation work and existing technology operations — new build and legacy maintenance in one deal.
• Telecommunications. Mphasis secured a multi-year managed services deal to modernise and scale a digital commerce platform for a large operator. The project includes AI-enabled engineering and delivery work tied to platform efficiency and software development.
• Healthcare. The firm expanded work with a global managed healthcare and health services organisation through a multi-phase engagement covering enrolment and billing, contact centre operations, and back-office functions. The scope includes platform-led transformation, agentic AI orchestration, and a cloud-based contact centre model, with room for further expansion.

The spread matters. It shows outsourcing demand remains tied not only to new AI projects but also to longer-running efforts to update systems and reshape operating models. Clients are buying both at once.

What recognition came with the results?

Mphasis highlighted several mentions and rankings by industry analyst firms during the period, including in infrastructure outsourcing, application management, cybersecurity, Azure services, and quality engineering for AI applications. The company noted these references accompanied the quarterly update rather than forming part of the financial results — a distinction worth keeping, since analyst mentions are a marketing signal, not revenue.

Why does this quarter matter?

The results land at a moment when the IT services industry is debating whether AI compresses outsourcing spend or expands it. Mphasis's quarter offers evidence for the expansion case: revenue up, EPS up 19.2%, pipeline at a record high, and two-thirds of new bookings explicitly AI-led.

The pressure point is profitability. Operating margin down 50 basis points year on year shows the growth still carries a cost. The question for coming quarters is whether the AI-led wins now filling the pipeline convert into margin expansion — or whether scaling AI for large enterprises remains, for now, a business bought at a discount.

Rakesh's stated bet is that platform-led work "unlocks budgets beyond the technology functions." If that thesis holds, the 23% year-on-year pipeline growth is the number to watch.