November 2, 2025

The IT wizard Mphasis is holding its ground strong! Despite uncertain economic clouds, the company’s Q2 report, shared Thursday, tells a tale of growing profits and steady client love. Nithin Rakesh, the boss of Mphasis, told ET in a lively virtual chat, "The macro environment has fairly remained the same... it hasn't improved but it hasn't deteriorated. But there are nuances... while there is an AI gold rush, most of the AI spend that clients are trying to make is really by freeing up something else." What does this mean? Clients are digging deep to spend on smart AI ideas but only if it helps cut costs somewhere else. Rakesh added, "The number one play with clients is still around efficiency and cost. And bundled with that is the need for digital transformation of business." This means companies want to work smarter and faster, all while upgrading with tech. Now to the dazzling numbers! Mphasis’s net profit for July-September jumped 10.8% year-on-year to Rs 469 crore, also edging up 4.5% from the last quarter. Revenue too spiked by 10.3% to Rs 3,901 crore! The magic was led by banking and financial services, which grew by 13.8%, and insurance soaring with a 31.5% leap. Rakesh called banking the "tip of the spear for new tech adoption," meaning it’s the leader in trying fresh tech and fixing problems, especially in the US and Europe markets. Looking region-wise, the Americas grew 2.1% quarter-on-quarter, and EMEA impressed with a 7.5% jump. Mphasis also bagged new deals worth $528 million in the quarter. Though this is a dip from $760 million in the previous quarter, it’s a big jump from just $207 million the year before. Even better, 87% of these deals focus on "new-generation digital services," which Rakesh promises will fuel robust revenue growth in the second half of the year. One small hitch was a deferred tax outgo, keeping operating margin flat at 15.3%. The company has about 30,809 employees now, slightly less than previous months. Rakesh gave a fascinating insight: "It's not just GenAI, but also machine learning and pattern recognition... if you create the ability to orchestrate solutions that starts predicting tickets before they happen, you can deliver the same or better outcomes with fewer people." Technology is doing more with less – a real game changer! Though Mphasis doesn’t give exact future forecasts, it aims to grow more than double the industry rate. What a spicy mix of smart strategy, steady numbers, and a dash of AI magic keeping this IT star glowing bright!

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Tags: Mphasis, It Solutions, Ai spending, Digital transformation, Quarterly results, Operational efficiency,