As banks start investing in technology again, Mphasis meets third-quarter sales projections

Mphasis Q3 revenue meets estimates as BFSI clients resume tech spending

Indian IT services company Mphasis reported third-quarter revenue largely in line with market expectations on Thursday, helped by a recovery in technology spending by banking and financial services clients amid improved macroeconomic and policy clarity.

Consolidated revenue for the quarter ended December 31 rose 12.3% year-on-year to ₹40.03 billion ($436.98 million), close to analysts’ average estimate of ₹40.08 billion, according to data compiled by LSEG.

The results mirror a broader trend flagged by larger peers such as Tata Consultancy Services and Infosys, which have pointed to a gradual revival in client spending after nearly a year of caution driven by US tariff uncertainty, macroeconomic headwinds and geopolitical risks.

Backed by Blackstone, Mphasis counts major US clients such as JPMorgan Chase, Wells Fargo, and United Airlines.

Net profit for the quarter rose 3.3% to ₹4.42 billion, but fell short of analysts’ estimate of ₹4.82 billion, impacted by a one-time charge of ₹355 million related to India’s new labour codes, the company said.

The banking and financial services (BFSI) segment — Mphasis’ largest vertical and accounting for nearly half of its revenue — posted a strong 20.8% year-on-year growth. Chief executive Nitin Rakesh had earlier told Reuters that he expects the BFSI business to be a key growth driver in the third and fourth quarters of FY26.

The insurance segment recorded a sharp 45.4% increase, while revenue from logistics and transportation declined by nearly 50%, reflecting uneven recovery across industry verticals.

Geographically, North America, which contributes close to 80% of the company’s revenue, grew 16% year-on-year, benefiting from improved spending sentiment among US clients.

Deal wins during the quarter stood at $428 million, lower than $528 million in the previous quarter but higher than $351 million reported in the year-ago period.

(Exchange rate: $1 = ₹91.6050)