Mphasis Q4 FY26 profit up 15% QoQ, stock rises

Stock reaction and the headline numbers

Mphasis shares gained 2.30% to ₹2,300.40 after the company reported higher sequential earnings for Q4 FY26. Consolidated profit after tax (PAT) rose 15.26% quarter-on-quarter to ₹509.64 crore. Revenue from operations increased 14.36% QoQ to ₹4,242.66 crore. The quarterly print also showed year-on-year growth, with PAT and revenue up 14.14% and 14.36% respectively in Q4 FY26. The results positioned the quarter as a continuation of the company’s steady growth trend in its core services. Mphasis describes itself as an IT solutions provider focused on cloud and cognitive services.

Q4 FY26: Profit, revenue, and tax line movements

On the profitability line, profit before tax (PBT) was reported at ₹681.31 crore in Q4 FY26, up 15.26% year-on-year. The quarter’s PAT increase came alongside the double-digit rise in revenue from operations. The company’s reported numbers indicate a broad-based improvement versus Q3 FY26, at least at an aggregate level. The market’s immediate response reflected a positive read-through from investors focused on near-term momentum.

Direct revenue trend in dollar and constant currency terms

Mphasis reported direct revenue growth of 3.2% QoQ and 9.6% YoY in Q4 FY26 in US dollar terms. In constant currency (CC) terms, direct revenue grew 3.3% QoQ and 9.2% YoY. These disclosures matter for investors because they help separate operational performance from currency movement. The company’s CC growth suggests that the sequential uptick was not driven only by translation benefits.

FY26 full-year performance

For FY26, Mphasis reported consolidated net profit of ₹1,862.60 crore, up 9.43% over FY25. Revenue from operations for the year rose 11.59% to ₹15,879.64 crore. The full-year performance adds context to the quarterly jump, showing that earnings growth has been maintained over a longer period rather than being a one-quarter spike. The FY26 numbers also provide a base for tracking execution against management priorities around cloud and cognitive services.

What the Street was expecting ahead of the quarter

Ahead of the March quarter results, analysts had flagged a moderate sequential rise in consolidated revenue and adjusted net profit, supported by order-to-revenue conversion, deal ramp-ups, and improvement in the banking and financial services segment. The company’s EBIT margin was expected to stay largely stable versus the trailing quarter. Analysts also noted that foreign exchange losses, ramp-up costs for large deals, and continued investments could offset gains from operating efficiencies and rupee depreciation against the dollar. On consensus, adjusted net profit for the quarter was estimated at about ₹503 crore (average of 16 brokerage estimates), implying over 5% sequential growth and nearly 13% YoY rise.

Consensus revenue estimates and recent comparable quarters

The Street’s average estimate for consolidated revenue for the reporting quarter was around ₹4,228 crore, implying almost 6% sequential growth and nearly 14% YoY growth. Brokerage estimates ranged from ₹4,178 crore to ₹4,291 crore, as per the figures cited. As a reference point, Mphasis had reported consolidated net profit of ₹442 crore on revenue of ₹4,003 crore for the December quarter. In the year-ago March quarter, the company had registered consolidated net profit of ₹446 crore on revenue of ₹3,710 crore. The article also noted a one-time cost of ₹35.48 crore in the trailing quarter related to implementation of new labour codes; excluding that one-time cost, the adjusted bottom line would have been about ₹478 crore.

Broker positioning and target prices

Among 15 research recommendations tracked by Informist, 12 carried a “buy” rating and three were “hold”. The average target price of the “buy” calls was ₹3,290. That level was stated to be more than 45% higher than Monday’s closing price. While target prices are not outcomes, the distribution of ratings provides a snapshot of how brokerages were positioned around the stock at the time.

Key financial snapshot (all ₹ figures in crore)

Broker estimate range cited for the quarter (₹ crore)

Why the result matters for investors

The quarter combined double-digit sequential growth in both PAT and revenue from operations, which typically supports near-term sentiment in IT services stocks. Investors also track direct revenue growth in USD and constant currency terms, and Mphasis reported positive sequential growth on both measures in Q4 FY26. The FY26 full-year increases in profit and revenue provide continuity, showing growth on an annual basis as well. Separately, the presence of multiple “buy” recommendations and a higher average target price signals constructive broker positioning, even though prices and targets can change quickly with new information.

Conclusion

Mphasis’ Q4 FY26 results showed PAT of ₹509.64 crore on revenue of ₹4,242.66 crore, with the stock rising to ₹2,300.40 on the day. The company also closed FY26 with profit of ₹1,862.60 crore and revenue of ₹15,879.64 crore. Investors will continue to compare operational performance using the USD and constant currency direct revenue trends disclosed for Q4 FY26, alongside any updates that follow on margins, deal ramp-ups, and segment momentum.