Mphasis says new $466 million Q2 contracts were 66% AI-led

Mphasis Limited recorded $466 million of new total contract value wins in Q2 FY27, ended 30 September 2026, and said 66% of those bookings were AI-led. Mphasis also reported revenue growth of 4.5% quarter on quarter and 17.4% year on year, alongside four disclosed engagements in financial services, technology, telecom and healthcare.

How much new business did Mphasis win in Q2 FY27?

Mphasis won $466 million in new total contract value, or TCV, during Q2 FY27, with AI-led engagements accounting for 66% of the quarterly total. TCV measures the value of contracted business and is not the same as revenue recognised in the quarter. The announcement did not disclose the value, duration or expected revenue timing of each individual engagement.

The remaining 34% of Q2 FY27 TCV was not identified as AI-led in the announcement. Mphasis did not provide a comparison with prior-quarter or prior-year TCV, so the filing does not establish how total booking value changed over those periods. It did, however, disclose that the total pipeline grew 4.4% sequentially and 23% year on year.

Chief Executive Officer and Managing Director Nitin Rakesh said the pipeline reached a new high in Q2 FY27. He attributed the increase to Mphasis’s platform-first approach and to Mphasis Tria-led business modernisation and business reimagination, which management said were driving pipeline and wins. A pipeline represents potential work rather than signed TCV or reported revenue.

Which Q2 FY27 engagements did Mphasis disclose?

Mphasis disclosed four new engagements covering a broker-dealer, a technology company, a telecommunications company and a managed healthcare and health services organisation. The company did not name any client or assign a TCV amount to any deal. The announced scopes span advisor administration, enterprise technology services, digital-commerce managed services, and healthcare operations.

A large broker-dealer selected Mphasis as a strategic partner to scale advisor-administration work, including high-touch services for advisors in front-office and middle-office functions. Mphasis said this engagement has a recurring revenue-sharing model and potential to expand across a large advisor ecosystem. The announcement did not state the revenue-sharing terms, implementation date or contract term.

A leading technology company selected Mphasis for a multi-year engagement covering specialised services across SAP, Oracle, Azure Monitoring, testing and automation. Mphasis said the work supports the client’s modernisation programme and continuing technology operations. The filing describes the assignment as multi-year but does not state a specific completion date or booking value.

The telecommunications engagement is also multi-year and covers managed services to modernise and scale a digital-commerce platform. Mphasis said it will use AI-enabled engineering and delivery capabilities to improve platform efficiency, accelerate development and support innovation. The company did not quantify any expected productivity, cost or revenue outcome from that work.

What AI capabilities are included in Mphasis’s announced deals?

The telecom and healthcare engagements contain the clearest descriptions of AI-related delivery in the Q2 FY27 announcement. For the telecom client, Mphasis identified AI-enabled engineering and delivery as part of the work on the digital-commerce platform. That disclosed scope aligns with the company’s statement that 66% of quarterly TCV wins were AI-led, though Mphasis did not identify which other contracts were included in that percentage.

The healthcare organisation selected Mphasis for a multi-phase engagement expanding its role across enrolment and billing, contact-centre operations and back-office work. The planned model combines platform-led transformation, agentic artificial intelligence orchestration and cloud-based contact-centre capabilities. Mphasis said the arrangement could expand further within the client relationship, but disclosed no projected revenue or date for a subsequent phase.

Mphasis also cited its Mphasis Tria offering as part of the business-modernisation and business-reimagination themes behind its pipeline. Separately, the company described NeoIP as an artificial-intelligence platform that orchestrates AI solutions and platforms across the enterprise information-technology value chain. The announcement did not allocate any portion of the $466 million TCV total to Mphasis Tria, NeoIP or another individual platform.

How did Mphasis’s Q2 FY27 operating metrics compare?

Mphasis reported revenue growth of 4.5% quarter on quarter and 17.4% year on year on a reported basis in Q2 FY27. In US-dollar terms, revenue rose 3.2% sequentially and 9.2% from the prior-year quarter. On a constant-currency basis, revenue increased 3.3% quarter on quarter and 9.7% year on year.

Direct revenue grew faster than total revenue in US-dollar terms during Q2 FY27. Direct revenue rose 3.4% quarter on quarter and 10.7% year on year, compared with total US-dollar revenue growth of 3.2% and 9.2%, respectively. On a constant-currency basis, direct revenue grew 3.5% sequentially and 11.3% year on year.

Gross margin was 27.1% in Q2 FY27, rising 20 basis points quarter on quarter but declining 100 basis points year on year. Operating margin was 14.8%, unchanged sequentially and 50 basis points lower year on year. Net margin rose 100 basis points sequentially and 20 basis points year on year to 12.2%, while earnings per share increased 14.6% quarter on quarter and 19.2% year on year to Rs 29.4.

What analyst positioning did Mphasis report?

Mphasis reported inclusion in Forrester’s The Forrester Wave: Infrastructure Outsourcing Services, Q3 2026, and in two HFS point-of-view reports. The HFS reports addressed Services-as-Software and AI-led modernisation. These disclosures describe third-party research coverage rather than customer contracts, revenue or financial forecasts.

Everest Group recognised Mphasis as a Major Contender in five 2026 PEAK Matrix assessments, covering application management services, Microsoft Azure services, global cybersecurity services, and quality engineering services for AI applications and systems. Gartner also mentioned Mphasis in publications on mainframe and midrange migration and modernisation, cloud enterprise resource planning, customer relationship management and human capital management services, and life-insurance policy-administration systems.

Conclusion

Mphasis’s Q2 FY27 disclosure combines $466 million of new TCV wins, a 66% AI-led booking mix and reported revenue growth of 17.4% year on year. Its four announced engagements broaden the disclosed work across financial services, enterprise technology, telecom and healthcare, while the telecom and healthcare mandates specifically include AI-enabled delivery, agentic AI orchestration or platform-led transformation.

The next disclosed indicator to watch is conversion of the pipeline that management said rose 4.4% quarter on quarter and 23% year on year. Management has identified Mphasis Tria-led modernisation and business reimagination as drivers of that pipeline, while the filing leaves the individual deal values, delivery schedules and revenue contribution of the Q2 FY27 engagements unresolved.