Mphasis share price jumped over 5 per cent in intraday trade on the BSE on Friday, July 25, defying weak market sentiment. Mphasis shares opened at ₹2,628.80 against their previous close of ₹2,655.10 and rose 5.2 per cent to their intraday high of ₹2,792.50. Around 9:55 AM, the IT stock traded 3.44 per cent higher at ₹2,746.40. Equity benchmark Sensex was 0.43 per cent down at 81,831 at that time.
Why is Mphasis share price rising?
The mid-cap IT company’s Q1 results seem to have boosted investors’ interest in the stock as it looks set to snap its seven-day losing streak on Friday.
Moreover, management’s upbeat commentary may also have triggered a buying interest.
On Thursday, July 24, Mphasis said it recorded the highest-ever deal wins total contract value (TCV) of $760 million in Q1FY26, of which 82 per cent were in new-gen services.
“We were early adopters and implementers of AI-based solutions for our clients, which has positioned us well to help with their AI journey, create efficiencies, cost savings and minimise project risks, while at the same time, accelerating our business. This is reflected in our highest-ever quarterly TCV of $760 million, of which 68 per cent is AI-led. Overall, it is a good start to the new financial year, which sets the stage for the year ahead,” said Nitin Rakesh, Chief Executive Officer and Managing Director, Mphasis.
The company said it will continue strengthening and expanding its AI-led propositions. It sees a steady ramp-up of large deals in the ongoing quarters and targets an operating (EBIT) margin within the 14.75 per cent to 15.75 per cent band.
Moreover, it expects to see nearly two times the industry growth, based on Q1 performance and steady conversion of TCV to revenue.
Mphasis’s gross revenue for the quarter grew 0.4 per cent quarter-on-quarter (QoQ) and 9.2 per cent year-on-year (YoY) in Q1FY26 on a reported basis and grew 1 per cent QoQ and 6.5 per cent YoY in constant currency.
Net profit, however, declined 1.1 per cent QoQ but grew 9.2 per cent YoY to ₹441.7 crore.
(This is a developing story. Please check back for fresh updates.)
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