Mphasis Limited has submitted the transcript of its Investor(s)/Analyst(s) Earnings Conference Call held on January 22, 2026. The call, featuring CEO Nitin Rakesh and CFO Aravind Viswanathan, focused on the company's strategic direction, particularly its AI platform, Mphasis NeoIPTM. The management highlighted the shift in client focus from traditional managed services to outcome-based, AI-led solutions. NeoIPTM is designed to integrate multiple AI solutions, enabling continuous evolution, automation of complex decisions, and embedding intelligence early in the software lifecycle. The platform's components, including NeoZetaTM, NeoSaBaTM, NeoRainaTM, NeoCruxTM, and AIOps, are supported by Business, Operations, Engineering, and Governance agents, with Ontosphere providing enterprise intelligence. The company reported strong traction with NeoIPTM, noting that clients leveraging the platform contribute over 50% of Mphasis' revenue. Key performance indicators showed significant growth: LTM TCV has doubled in the last four quarters, modernization pipeline is up 4x, and the large deal pipeline has climbed 2x. Since the launch of Mphasis.ai, the pipeline has grown 2.5x, with the current deal pipeline being the largest ever. Net new TCV wins for Q3 were $428 million, including two deals over $50 million, bringing the LTM TCV to $2.1 billion. Financially, Q3 FY26 revenue was $451 million, representing a 1.5% sequential and 7.4% year-over-year growth in constant currency. The Direct business contributed 98% of revenue, with Direct revenue growing 1.9% sequentially and 9.6% YoY in constant currency. Geographically, the U.S. grew 10.8% YoY, EMEA saw 3.9% sequential growth, and Rest of the World grew 17.4% YoY in constant currency. The Enterprise Apps service line, contributing 75% of revenue, increased by 3.7% sequentially, driven by AI-led modernization. ITO service line for Direct also delivered 9% YoY growth. Vertical performance was strong, with BFS growing 14.8% YoY overall (18% YoY in Direct) and Insurance seeing 36.6% YoY growth in constant currency. Combined, BFSI verticals achieved 3.7% sequential growth and represented 66% of revenue. EBIT margin remained stable at 15.2%. Operating profit grew 2.2% sequentially and 11.6% YoY to INR 6,089 million. Excluding an exceptional item of INR 355 million due to changes in labor laws, EPS grew 9% YoY to INR 24.6. Operating cash flow was $43 million, with DSO at 91 days, expected to trend down in 2026. The company expects to maintain EBIT margins within the band of 14.75% to 15.75% and anticipates growth to be greater than 2x the industry growth, driven by its platform and strong TCV conversion.
