Mphasis TMT growth is led by telecom and device engineering

Mphasis Limited said on its earnings call that TMT growth is led by device makers and telecom, with rapid telecom expansion bringing some customers into its top-10 client category. Management said Mphasis is pursuing R&D, embedded software and transformation-led engineering rather than broad rate-card delivery, and described TMT as its second-biggest vertical after Banking.

What is driving Mphasis TMT growth?

Mphasis said device makers, telecom, high-tech companies and independent software vendors, or ISVs, are driving TMT growth, in that stated order. The four-part mix means the vertical is not tied to one technology buyer group, while management identified device makers and telecom as the larger current areas of activity.

Device makers are supported by Mphasis's footprint in research and development, or R&D, product engineering and embedded software. Management linked this work to the company's heritage of ownership and described it through engineering capabilities, rather than through a volume-based staffing model or standard pricing contracts.

Telecom is the other principal contributor to the vertical's momentum. Mphasis said it has experienced rapid expansion in this segment, with some clients moving into the top-10 client category because they view the company as a transformation-led software-engineering partner rather than one of the established providers serving the sector.

Which TMT customer segments does Mphasis serve?

Mphasis serves four disclosed TMT sub-segments: device makers, telecom, high-tech companies and ISVs. Device makers rank first in management's ordering because of R&D, product-engineering and embedded-software work, while telecom ranks second after its reported rapid account expansion.

High-tech companies are the third segment and include large technology names, according to management. Mphasis said the business started from a small base and is beginning to grow, but did not disclose revenue, a client count or a growth rate for high-tech customers.

ISVs are the fourth and still-small segment in the TMT portfolio. Management said Mphasis will continue looking for ways to expand its book of business with these software-platform clients, although it gave no timeline or numerical target for that expansion.

Why is Mphasis avoiding rate-card work in high-tech?

Mphasis said it is not positioning itself in high-tech as a scaled provider using rate cards. Instead, management said the company seeks opportunities where it can differentiate through its own capability and specialisation, a strategy distinct from broad commodity delivery.

The disclosed delivery mechanisms illustrate that approach. Device-maker work includes product engineering and embedded software, while telecom customers are engaging Mphasis for transformation-led software engineering; management did not cite pricing data or margins for either type of work.

Management made the distinction while responding to an analyst's observation that some industry peers had cited slower spending by technology clients prioritising artificial-intelligence, or AI, capital expenditure. Mphasis did not say all technology budgets were expanding, but said its selective positioning is intended to identify work where specialised engineering can create a differentiated role.

How material is TMT to Mphasis's vertical mix?

Mphasis said TMT is its second-biggest vertical after Banking and is close to Insurance in size. This places TMT among the company's material vertical businesses, although management did not provide its revenue, share of company revenue or a numerical growth rate on the call.

Management said the TMT performance record extends beyond the latest two quarters to the last three years. It cited that track record, together with the four sub-segments and telecom account expansion, as the basis for its view that the vertical has significant room to become larger.

The broader account approach may support that ambition. Mphasis said it had grown its top five, top 10, next 10 and next 20 clients well, and that it has become a larger provider and partner to sophisticated buyers, but it declined to give a client-specific outlook for its top account.

What could affect Mphasis's TMT expansion?

Mphasis said long-term client decisions remain difficult because customers are managing uncertainty, AI-related noise and the pace of technology change. Those factors could affect the timing of larger engineering and transformation decisions even as management described conversion of both short-cycle and larger deals as robust at the time of the call.

Management contrasted current conversion with the middle or late part of FY 2026, when conversion took longer. It said the present conversion rate has helped delivery, while also cautioning that decision cycles for complex, long-term engagements remain challenging.

Mphasis also explained that a greater mix of shorter-tenure deals can alter the relationship between total contract value, or TCV, and reported revenue because annual contract value converts differently from longer-tenure work. This is a company-wide deal-conversion observation, not a disclosed TMT bookings figure, and it does not establish a separate TMT revenue outlook.

Conclusion

Mphasis's TMT growth strategy centres on specialised engineering across four client groups, led by device makers with R&D and embedded-software work and telecom with transformation-led engagements. Its position as the second-biggest vertical after Banking, close to Insurance in size, indicates that TMT is a significant part of Mphasis's operating mix rather than a narrow technology initiative.

The next issue to watch is execution of management's plan to expand the still-small ISV book and develop the growing high-tech segment, alongside further telecom account progression. Management has not set a TMT revenue target or disclosed a segment growth rate, and it continues to identify complex client decisions, AI-related uncertainty and rapid technology change as unresolved factors in long-term deal timing.