Financial Performance
Mphasis Limited reported strong financial results for FY 2025-26 with consolidated revenue growing 11.6% year-over-year to ₹158,796 million and net profit increasing 9.4% to ₹18,626 million. The company achieved basic EPS of ₹97.82 and diluted EPS of ₹97.54. Standalone performance showed revenue of ₹94,671 million with net profit of ₹14,024 million.
Dividend and AGM Details
The Board proposed a final dividend of ₹62 per equity share, subject to shareholder approval at the 35th Annual General Meeting scheduled for July 23, 2026. The dividend payout would amount to approximately ₹11,832 million, with record date set for July 8, 2026 and payment expected by August 21, 2026. The AGM will be held virtually and includes agenda items for re-appointment of key directors including CEO Nitin Rakesh and independent directors.
Tax Litigations and Audit Matters
A significant concern highlighted in the audit report involves tax litigations with disputed direct tax demands of ₹34,647 million not acknowledged as debts, representing a substantial increase from ₹25,445 million in the previous year. The company has furnished bank guarantees of ₹11,382 million against these demands. The evaluation of tax positions was identified as a key audit matter due to the significant judgement required in estimating outcomes.
Business Segments and Acquisitions
The company operates across five business segments: Banking and Financial Services (₹83,786 million), Technology Media and Telecom (₹28,696 million), Insurance (₹23,444 million), Logistics and Transportation (₹8,719 million), and Others (₹15,456 million). Geographically, Americas contributed ₹133,719 million while India contributed ₹7,755 million. The company completed several acquisitions including EDZ cybersecurity business, tsQs software testing business, and Locate digital transformation management business.
Capital Structure and Shareholding
Mphasis maintained authorized capital of ₹2,450 million with paid-up capital of ₹1,908 million comprising 190.8 million shares. Promoter BCP Topco IX Pte Ltd held 30.55% stake. During the year, 742,729 shares were issued upon exercise of stock options. The company granted 56,000 options under the 2016 Plan and 7,500 units under the RSU Plan-2021.
ESG and Sustainability Performance
Mphasis demonstrated strong ESG performance with improved CDP score from C to B, S&P Global ESG Score of 73, EcoVadis score of 55/100, and maintained A rating from MSCI. The company achieved 100% renewable energy usage in operations and reduced Scope 1 emissions by 39.8% year-over-year. Total employees stood at 24,088 with 34.99% attrition rate for permanent employees.
Subsequent Events and Future Outlook
The company announced two post-year-end acquisitions: OKIN Process cybersecurity business for up to ₹522 million and Theory and Practice Business Intelligence Inc. for up to ₹2,033 million. The financial statements received unqualified audit opinion from B S R & Co. LLP, confirming compliance with accounting standards and regulatory requirements.