Mphasis recorded its best quarterly performance in three years in Q4 FY25, driven by AI-led deals. This is also fueled by the thriving demand in BFSI and TMT. The company further holds its growth by securing $390 million in new contract wins.
CEO Nitin Rakesh highlighted the company’s tech-first approach. He pointed out that AI initiatives account for 59% of deal wins. The results position Mphasis as one of the leading AI-driven companies. It is expanding despite the ongoing shift toward AI adoption.
What’s Fueling Mphasis’s Record-Breaking Quarter?
Mphasis reported revenue of ₹3,710 crore for the January–March quarter. It demonstrated an 8.9% YoY increase and a 4.5% sequential increase. The net profit reached ₹446.5 crore, marking a 13.6% year-over-year growth. This growth is driven by strong AI-led transactions from TMT, BFSI, and insurance. The company closed 13 large deals in FY25, with two major ones in Q4 alone.
It is a strong quarter as global corporations increase their spending on automation and efficiency. With tech spending reprioritized, AI adoption continues to drive deal conversions and revenue scale for agile players. Mphasis, one of the leading AI-driven companies, is capitalizing on high-value digital transformation programs.
Peer Performance Highlights Mphasis’s Competitive Edge
Mphasis’s total contract value pipeline grew 26% sequentially and 86% YoY. Deal sizes in the $100–250 million range have become its top spot. “AI is changing what we are selling, how we are selling, who we are selling to, and what we are delivering,” the CEO said. He is pointing to a deeper shift in client expectations and technology delivery.
Peers in the IT sector delivered varied results. Persistent Systems’ revenue exceeded expectations, with a 25% YoY increase in consolidated profit and revenue. In contrast, WNS posted flat growth with $336.3 million in revenue, up only $3 million from the previous quarter. This contrast reinforces how AI-driven companies like Mphasis and Persistent outperform due to their deep investment in automation and transformation-led services.
Can AI Strategy Beat Global Challenges?
Despite global macro uncertainty and slowed discretionary spending, Mphasis is confident in maintaining EBIT margins between 14.75% and 15.75%. The firm aims to stay ahead by investing in tech-first solutions, not price competition. Rakesh said, “We’re expanding the wallet share, not by playing the price game, but through the technology-led solution game.”
While logistics and ‘others’ segments witnessed a drop, logistics declining 7.7% QoQ and 15.5% YoY, AI continues to open new service verticals. Industry-wide AI adoption is causing deflation in traditional revenue models. Mphasis is using this shift to its advantage by targeting broader markets and creating differentiated value.
As businesses seek agility, AI-led deals will define growth opportunities for Mphasis and its peers. Its forward strategy, rooted in solution-driven models and intelligent automation, ensures continued growth. This approach keeps Mphasis competitive with AI-driven companies in the digital economy.
Final Thoughts: Mphasis Powers Ahead with AI Vision
With 59% of Q4 deal wins coming from AI-led deals, Mphasis is reshaping its growth story. The company is focusing on a tech-first approach, with continued traction in BFSI and TMT. Among the rising class of AI-driven companies, it’s using the power of AI to meet fast-evolving client needs and ride the wave of AI adoption. The company’s strategic focus on AI-led solutions positions it for continued success in a rapidly changing market.
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